How to Claim the Colorado Senior Housing Credit
Learn to navigate the Colorado Senior Housing Credit. This guide helps qualifying older residents lower their housing costs, whether they own their home or rent.
The Colorado Senior Housing Credit is a state tax benefit for low-income seniors with their housing expenses. This refundable credit is available to individuals who either own their home or rent their primary residence. It functions as a direct reduction of state income tax liability or, if no tax is owed, as a payment issued to the individual. This financial support is separate from other property tax relief programs, like the Senior Property Tax Exemption, and has its own specific rules for qualification.
Eligibility Requirements for the Credit
To qualify for the Colorado Senior Housing Credit, the primary requirement is age; the person must be 65 years of age or older at the end of the tax year for which they are claiming the credit. This age test applies to the individual filer or at least one spouse if filing a joint return. The individual must also have been a Colorado resident for all or part of the tax year.
The credit is for low-income seniors, and eligibility is based on federal adjusted gross income (AGI). For the 2024 tax year, the income limit is a federal AGI of $75,000 or less for single filers and $125,000 or less for joint filers. The maximum credit is available to those with a federal AGI of $25,000 or less. These income thresholds can be adjusted, so it is important to verify the current limits for the specific tax year.
A final condition is that an individual cannot claim this credit if they have already claimed the Senior Property Tax Exemption for the same tax year. This provision prevents the doubling of state housing-related tax benefits, requiring seniors to choose the program that provides them the most benefit.
Information and Documentation Needed
You will need the Social Security numbers for yourself and your spouse, if applicable, along with your total income from all sources. This includes figures that contribute to your federal AGI, which is the starting point for the credit calculation. You must also know the total amount of property tax you paid during the year if you are a homeowner, or the total rent paid if you are a renter.
You will need several documents to support your claim:
- Your Social Security benefit statement, often reported on Form SSA-1099
- Any statements for pensions or retirement distributions, such as Form 1099-R
- Your property tax statement from the county assessor’s office if you are a homeowner
- A record of your total rent payments for the year, such as lease agreements and canceled checks or payment receipts, if you are a renter
The credit is calculated and claimed using Form DR 0104CR, the Individual Credit Schedule, which is an attachment to the main Colorado Individual Income Tax Return, Form DR 0104. For the 2024 tax year, the maximum credit is $800. For those with a federal AGI above $25,000, the credit amount is reduced by $8 for every $500 of income over that threshold. The process is the same for both homeowners and renters, as the credit is based on income, not the specific amount of property tax or rent paid.
How to Claim the Credit
Once you have determined your eligibility and have completed Form DR 0104CR, there are two distinct paths for submitting your claim. The method you use depends on whether you have an obligation to file a state income tax return.
The most common method is to file a Colorado Individual Income Tax Return, Form DR 0104, and attach your completed Form DR 0104CR. The credit amount is then transferred to the DR 0104. This credit will first be applied to any Colorado income tax you may owe. If the credit is larger than the tax you owe, or if you owe no tax, the excess amount will be issued to you as a refund.
Seniors who are not required to file a Colorado tax return can receive the credit as a direct payment, often called a grant. To do this, you must complete Form DR 0104CR and mail it with a simplified Form DR 0104 to the address provided by the Department of Revenue. Even with zero income to report, the forms must be filed to process the credit claim.
After submission, the processing time can vary. If you claimed the credit on a standard tax return and are due a refund, electronic filings are processed faster, often within a few weeks. Grant payments applied for without a full tax return may follow a different processing timeline.