Child Support Guideline - Colorado
JDF 1822 R1/11 INSTRUCTIONS FOR COMPLETING WORKSHEETS A AND B MANUALLY Page 4 of 11
of Worksheet B. Such costs should not exceed the level required to provide quality care from a licensed source
for the children.
The credit against income tax for child care due to employment or job search is provided under Sec. 44A of the
Internal Revenue Code. The value of this tax credit, if allowed by the IRS, should be subtracted from actual
costs for child care due to employment or job search (refer to IRS Form 2441). The credit is only available to the
parent that has the most overnights scheduled with the child(ren). In situations where the parent with fewer
scheduled overnights pays work related child care, put the actual amount spent in this category on the form. The
credit allows 35 percent of work-related expenses if the taxpayer has $15,000.00 or less in annual adjusted
gross income up to a maximum of $1,050.00 (up to $250.00/mo. in day care expenses) for one child and
$2,100.00 (up to $500.00/mo. in day care expenses) for two or more children. As the taxpayer’s adjusted gross
income increases, the tax credit decreases. For each $2,000.00 (or fraction thereof) increase above the
$15,000.00, the percentage decreases by one percent. The following table illustrates this concept:
Adjusted Appropriate Maximum Credit Maximum Credit
Gross Income Percentage One Child Two or More
Children
$0-$15,000 35% $1,050 $2,100
$15,001-$17,000 34% $1,020 $2,040
$17,001-$19,000 33% $990 $1,980
$19,001-$21,000 32% $960 $1,920
$21,001-$23,000 31% $930 $1,860
$23,001-$25,000 30% $900 $1,800
$25,001-$27,000 29% $870 $1,740
$27,001-$29,000 28% $840 $1,680
$29,001-$31,000 27% $810 $1,620
$31,001-$33,000 26% $780 $1,560
$33,001-$35,000 25% $750 $1,500
$35,001-$37,000 24% $720 $1,440
$37,001-$39,000 23% $690 $1,380
$39,001-$41,000 22% $660 $1,320
$41,001-$43,000 21% $630 $1,260
$43,001 + 20% $600 $1,200
Let’s see how this credit works in an actual scenario:
¾ There are 2 eligible children (12 or younger & expenses incurre d for the child – see IRS form 2441)
¾ $24,000.00 is the annual adjusted gross income.
¾ The parent with the most parenting time spe nds $360.00/mo. on work related child care.
The $24,000.00 annual income is in the 30% tax bracket for this credit. So, take the $360.00/mo. and multiply
that by 30%. Then subtract the result from the amount spent on work relate d child care:
$360.00 X .30 (30%) = $108.00 (The max. amount eligible for the tax credit for 2 children is
$500.00/mo. Therefore, we can take the full credit of $108.00/mo.)
$360.00 - $108.00 = $252.00 (This is the net
child care cost.)
Enter $252.00 in the appropriate parent’s column for work related child care.
Now, let’s take an example that exceeds the maximum allowable credit:
¾ 1 eligible child
¾ $50,000.00 annual incom e
¾ The parent with the most parenting time spe nds $500.00/mo on work related child care.
The $50,000.00 annual income is in the 20% tax bracket for this credit. In this case, the $500.00/mo. is more
than what is authorized for the credit ($250.00/mo. for one child). Therefore, take the $250.00 times 20% to
arrive at the credit. Then, subtract the result from the work related child care expense of $50 0.00:
$250.00 X .20 (20%) = $50.00
$500.00 - $50.00 = $450.00 (This is the net
child care cost.)
Enter $450.00 in the appropriate parent’s column for work related child care.
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