Child Tax Credit Day in Colorado

Eligible Colorado families with children have started receiving their first monthly payment under the recently expanded federal Child Tax Credit.  About 630,000 families representing 88% of children in Colorado will start receiving monthly Child Tax Credit (CTC) payments as a result of a new federal law.

Eligible Colorado families will automatically receive up to $3,600 per child per year. Child Tax Credit payments will be distributed monthly, with families automatically receiving up to $250 per month for each child aged six to 17, and up to $300 per month for each child below six. These monthly payments will continue until December, and families or individuals can claim the other half of their Child Tax Credit when filing taxes in early 2022.

Under the Polis administration at the state level, Colorado also recently funded a new State Child Credit that will provide additional support to Colorado families with young children.

“The federal Child Tax Credit and the state CTC will play a critical role in powering Colorado’s comeback and ensuring that hardworking families and individuals have more money in their pockets to support their children, help grow our economy and thrive,” said Governor Polis. “For some, this help means summer camp, better food, enriching after-school activities, or help with rent, this is major tax relief—$3,000 to $3,600 per child—for the vast majority of families. We want as many Colorado families as possible to have the chance to receive this tax relief.”

If you didn’t file your 2019 or 2020 federal tax return, you need to take action to get these important payments.  To check eligibility status for the federal Child Tax Credit, visit the IRS website.  The quickest way to get these payments is to file your 2019 or 2020 return normally. If you didn’t file, visit the following link to answer questions to determine your eligibility status. The IRS has a CTC non-filer tool that can be used to claim this credit and many other resources to support families who do not automatically receive their first check today.

At the state level, the Polis administration has doubled the state Earned Income Tax Credit from 10% to 20%.  Under the state child tax credit, for the first time, an estimated 155,000 Colorado families will now be able to claim a refundable state Child Tax Credit of up to $1,080 for children under age six depending on income level.

In March 2021, President Joe Biden signed into law a one-year expansion of the CTC in the American Rescue Plan Act which was championed by Senator Michael Bennet in Congress. This will help Colorado families by lifting 57,000 kids out of poverty and benefiting more than 1 million children across the state.