Maximize Your Gift With the Colorado Child Care Contribution Tax Credit
Taxpayers who make a monetary contribution to promote child care in Colorado may claim an income tax credit of 50% of the total donation. You do not need to have children in child care to benefit from this contribution tax credit.
Both corporate and individual donors may benefit. Taxpayers who make a cash contribution to the Y may claim an income tax credit of 50% of the total donation on their Colorado income tax return. Please check with your accountant; you may need to itemize to take advantage of this tax benefit.
| Donation Amount | $10,000 | $50,000 | $100,000 |
| CO Contribution Tax Credit | $5,000 | $25,000 | $50,000 |
| Fed tax savings at 32% | $1,600 | $8,000 | $16,000 |
| CO state tax savings at 4.4% | $220 | $1,100 | $2,200 |
| Out of pocket cost | $3,180 | $15,900 | $31,800 |
*this example assumes itemized deductions
*please consult your tax preparer for advice regarding your personal situation
When Giving Through Qualified Charitable Distributions (QCD's)
| Donation Amount | $10,000 | $50,000 | $100,000 |
| Fed tax savings at 37% | $3,700 | $18,500 | $37,000 |
| CO state tax savings at 4.4% | $440 | $2,200 | $4,400 |
| CO Contribution Tax Credit | $5000 | $25,000 | $50,000 |
| Out of pocket cost | $860 | $4,300 | $8,600 |
*itemizing is not required to realize full tax benefit when giving through QCD's
*please consult your tax preparer for advice regarding your personal situation
Colorado Child Care Contribution Tax Credit Guidelines
- In-kind contributions of property (non-monetary donations) do not qualify for the credit.
- Donors may not receive any goods or services in return for their contribution.
- The credit shall not exceed $100,000 per year.
- The credit allowed shall not exceed the tax liability for the year. Any excess credits may be carried forward for up to five years.
- The Y will provide you with the DR 1317 Child Care Contribution Credit Certification in January of the following year.
- Donors should contact their tax advisors for advice about how the credit affects their tax picture. Information provided here is not tax advice.
- Individuals who donate funds out of their QCD's (Qualified Charitable Distributions) will receive credit without federal consequences.
Donors should contact their tax advisors for advice about how the credit affects their tax picture. Information provided here is not tax advice.