Colorado Child Care Contribution Credit
Taxpayers who make a monetary contribution to promote child care in Colorado may claim an income tax credit of 50% of the total contribution. This credit was established by the State of Colorado to promote private support of qualifying child care programs.
Your donation to the Annual Fund, as well as to the Paddle Raiser and Teacher Wishes at the annual gala, are eligible for this tax credit program. The donation amount can be claimed as a charitable deduction to state and federal income taxes for those donors who itemize their deductions. These combined tax benefits may result a substantial tax benefit of over 60% of your donation amount, as illustrated below:
| YOUR Federal tax rate | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 39.60% |
| Colorado state rate | 4.63% | 4.63% | 4.63% | 4.63% | 4.63% | 4.63% | 4.63% |
| DONATION AMOUNT | $100 | $250 | $500 | $1,000 | $5,000 | $10,000 | $10,000 |
| CO Child Care Credit | $50 | $125 | $250 | $500 | $2,500 | $5,000 | $5,000 |
| Federal tax savings | $28 | $70 | $140 | $280 | $1,400 | $2,800 | $3,960 |
| CO tax savings | $5 | $12 | $23 | $46 | $232 | $463 | $463 |
| less federal deduction for reduced CO tax | ($15) | ($38) | ($76) | ($153) | ($765) | ($1,530) | ($2,163) |
| Total Tax Benefits | $67 | $168 | $337 | $673 | $3,367 | $6,733 | $7,260 |
| NET after tax cost | $33 | $82 | $163 | $327 | $1,633 | $3,267 | $2,740 |
Please note:
The above chart is for illustration purposes only. Jarrow does not guarantee these savings as individual tax circumstances may vary.
- Jarrow will provide each donor with a letter confirming the amount of the donation eligible for the Colorado Child Care Contribution credit.
- In-kind donations do not qualify for the credit.
- Please consult your tax advisor for information about your specific situation.