The Colorado Child Care Contribution Credit (5C) was established to encourage greater private support of Colorado child care programs, like those provided by the JCC Denver. Because monetary contributions to the JCC qualify for this tax credit, you may be able to decrease the after-tax cost of your gifts by more than 50 percent.
Please consult with your tax adviser to determine how the credit will affect you personally.
The effect of the credit is that half of your donation to the JCC – as long as it is designated for the credit – is offset by a reduction of your Colorado income taxes. You will still be able to claim your full contribution as a charitable deduction on your Federal and State income tax returns if you itemize deductions. We always recommend that you consult with your tax adviser to determine how the credit will specifically benefit you.
The JCC programs that are eligible for Colorado Child Care Contribution Credit are Early Childhood Engagement, Camp Shai, and Ranch Camp. In addition, an undesignated gift or gift given to area of greatest need, as well as gifts to a fundraising event such as the Annual Dinner, may also be eligible for 5C.
- The maximum credit you may take in any one year is $100,000 or your actual Colorado income tax liability for the year, whichever is less. However, any unused credit may be carried forward for up to five additional tax years.
- Only monetary donations are eligible. In-kind gifts, such as stock or other securities, labor, or equipment do not qualify for the tax credit.
- Contributions for which an Enterprise Zone Credit is taken are not eligible for this credit.
- As required by law, the JCC Denver will provide each donor with a signed statement confirming the amount of the monetary contribution eligible for the credit and the eligible purpose for which the contribution will be used.
- Please write “Colorado Child Care Contribution Credit” or “5C” in the memo line of your check or donation card. If giving online, please note that your gift is for the Colorado Child Care Contribution Credit (5C) option.
*Please consult with your tax adviser to determine how the credit will affect you personally.
Further examples of the total impact on your taxes are shown in the chart below. As always, you should consult with your tax adviser to determine how the credit will affect you personally.
Tax Savings Examples:
|Federal tax rate||28%||28%||28%||28%|
|Colorado tax rate||4.63%||4.63%||4.63%||4.63%|
|Colorado Child Care Contribution Credit||$250||$500||$2,500||$5,000|
|Federal Income Tax Deduction||$140||$280||$1,400||$2,800|
|Colorado State Income Tax Deduction||$23.15||$46.30||$231.50||$460.30|
|Savings this year||$413.15||$826.30||$4,131.50||$8,260.30|
|Loss of Federal deduction for CO tax on next year’s return||$(76.48)||$(152.96)||$(764.82)||$(1,529.64)|
|Total cost to donor||$163.33||$326.66||$1,633.32||$3,269.34|
The above is an illustration based on a 28% tax bracket. Your tax savings may be more or less than these typical examples. Please consult with your tax adviser to determine how the credit will affect you personally.