Childcare Contribution Credit PDF  | Print |  E-mail

Scheduled to end in 2010


There’s still time to take advantage of the Colorado Child Care Contribution Credit. As taxpayers in Colorado we have the opportunity to help our local communities by supporting children with quality daycare. The Colorado legislature has made childcare in Colorado a priority by providing a credit to those who contribute to a qualified daycare facility.

 

But this opportunity won’t last much longer. This credit is scheduled to sunset in 2010, unless
reinstated by the Colorado State Legislature. Here’s how it works:

The taxpayer contributes to a qualified daycare facility and receives an itemized deduction for the amount of the contribution. The taxpayer also receives a 50% credit to be used in offsetting their Colorado income tax liability.

 

Examples assuming a 28% federal tax rate and a 4.63% state tax rate:

Contribution amount
$100.00
$500.00
$1000.00
$5000.00
Federal benefit
28.00
140.00
280.00
1400.00
State benefit
4.63
23.15
46.30
231.50
Colorado 50% credit
50.00
250.00
500.00
2500.00
Total benefit
82.63
413.15
826.30
4131.50
Net cost to taxpayer
17.37
86.85
173.70
868.50

Some additional information

  • In-kind contributions do not qualify for the credit (i.e. contributed property).
  • The credit is good for contributions made through December 31, 2010.
  • The credit carries forward for 5 years if you are unable to use it in the year of the contribution.
  • The credit is available up to $100,000 per year.
  • For more information Colorado FYI Income 35 is available at www.taxcolorado.com or you can talk to your tax professional.
  • Please consider making a gift to the YMCA today. To make a gift, call the Development office at 720-652-4724, donate online, or print the attached form and mail to:
    Ed & Ruth Lehman YMCA
    Attn: Development Office
    950 Lashley St.
    Longmont, CO 80504