Charitable Giving: Colorado Child Care Tax Contribution Credit

Colorado Christian Academy is a 501(c)(3) nonprofit organization according to Internal Revenue Service tax code law and in order to advance our efforts to foster and encourage greater private support of child care, Colorado Christian Academy can accept monetary contributions that are eligible for the Colorado Child Care Tax Contribution Credit.   Contributions received will be used to promote and support child care for children ages 12 or younger at Colorado Christian Academy.  

Through this Colorado tax credit program, taxpayers that make a qualifying monetary contribution may claim an income tax credit of 50% of the total qualifying contribution.  Therefore, your donation to Colorado Christian Academy is offset by a reduction in your Colorado income taxes and you can still claim your contribution as a charitable deduction on your Federal and State income tax returns if you itemize your deductions. Resident and nonresident individuals, estates, trusts, and C corporations can all claim the credit for qualifying contributions made but in-kind contributions of services or property (non-monetary donations including shares of stock) do not qualify. The maximum credit a taxpayer can claim for a qualifying contribution during a tax year is limited by the lesser of your Colorado state income liability for the year or $100,000 (a donation of $200,000).  However, taxpayers can carryforward excess credits for up to five tax years, but must use excess credits in the earliest tax year possible.  

 

Once an eligible monetary gift to Colorado Christian Academy is designated for the child care tax credit and donated, Colorado Christian Academy will provide the donor with a signed letter that states the amount of the cash gift, along with the DR1317 tax form certifying the child care contribution. 

If you have questions on your tax situation, please consult with a tax advisor or CPA.  The information presented here is informative only and was correct at the time of creation, but should not be mistaken as accounting, tax or legal advice.