Senior and Retirees Tax Benefits
CollegeInvest Contribution Subtraction
An income tax subtraction is allowed to individuals for payments or contributions they made during the tax year to a college savings plan with CollegeInvest. The subtraction is subject to certain per-beneficiary limits.
Required forms: DR 0104AD
Additional guidance: Income Tax Topics: 529 Contribution Subtraction
Income-Qualified Senior Housing Income Tax Credit
A refundable income tax credit is allowed for tax years 2022 and 2024 to full-year and part-year residents age 65 or older. Taxpayers can claim the credit only if they did not claim a property tax exemption under section 39-3-203, C.R.S., for the tax year.
Adjusted gross income limit: $75,000 (or $125,000 for taxpayers filing a joint return for tax year 2024)
Required forms: DR 0104CR
Additional guidance: Income Tax Topics: Income-Qualified Senior Housing Tax Credit
Long-Term Care Insurance Credit
A nonrefundable income tax credit is allowed to Colorado residents who purchase, or pay premiums on, a long-term care insurance policy. The credit is equal to 25% of the amount paid for the insurance during the year and is limited to $150 per policy.
Federal taxable income limit: $50,000 (or $100,000 for taxpayers filing a joint return claiming the credit for two policies or for a joint policy that covers each taxpayer separately)
Required forms: DR 0104CR
Additional guidance: Income Tax Topics: Long-Term Care Insurance Credit
Military Retirement Benefits Subtraction
An income tax subtraction is allowed to retired military servicemembers under 55 years of age for military retirement benefits included in their federal taxable income. The allowable subtraction is limited
to $15,000, with lower limits for tax years 2021 and prior.
Required forms: DR 0104AD
Additional guidance: Income Tax Topics: Military Servicemembers and Income Tax Topics: Social Security, Pensions, and Annuities
Pension, Annuity, IRA, Disability, Social Security Subtraction
An income tax subtraction is allowed to individuals age 55 or older for pension and annuity income included in their federal taxable income. The subtraction is generally limited to $24,000 for individuals age 65 or older and limited to $20,000 for all other individuals, but for certain tax years and certain taxpayers these limits do not apply to Social Security benefits.
Required forms: DR 0104AD
Additional guidance: Income Tax Topics: Social Security, Pensions, and Annuities
PERA/DPSRS Subtraction
An income tax subtraction is allowed to individuals age 55 or older for pension and annuity income included in their federal taxable income. The subtraction is generally limited to $24,000 for individuals age 65 or older and limited to $20,000 for all other individuals, but for certain tax years and certain taxpayers these limits do not apply to Social Security benefits.
Required forms: DR 0104AD
Additional guidance: Income Tax Topics: Social Security, Pensions, and Annuities
Property Tax/Rent/Heat Credit (PTC) Rebate
The Property Tax, Rent, and Heat (PTC) Rebate is available for Colorado residents with low income who are older or have disabilities in order to help with their property tax, rent, and/or heat expenses. Applicants must be age 65 or older, a surviving spouse, age 58 or older, or disabled and unable to engage in any substantial gainful activity for medical reasons.
Income limit: For single filers claiming the rebate for 2024, their total income from all sources for the year must be less than $18,704. For married couples filing jointly, their total income for the year must be less than $25,261.
Required forms: DR 0104PTC
Additional guidance: Tax.Colorado.gov/PTC-rebate
Qualifying Charitable Contribution Subtraction
An income tax subtraction is allowed to individuals who claim the standard deduction, rather than itemized
deductions, on their federal income tax returns. The subtraction is allowed for the aggregate amount of qualifying charitable contributions they make during the tax year in excess of $500.
Required forms: DR 0104AD
Additional guidance: Income Tax Topics: Charitable Contributions
TABOR State Sales Tax Refund
Depending on state revenue, a refundable income tax credit may be allowed to qualifying resident individuals. The credit amounts vary from year to year and may depend on the qualifying individual’s adjusted gross income.
Required forms: DR 0104
Additional guidance: Income Tax Topics: State Sales Tax Refund Credit
Helping You Save Money with Tax Benefits
Colorado Promise
Tax Credits for Higher Education
Ready to take the next step in your education? Colorado offers a variety of opportunities to further your learning. From community colleges to universities, you can find the right fit to achieve your goals. Visit the Colorado Department of Higher Education to explore your options and learn more about available resources and programs. Learn More About Tax Credits For Higher Education.