Colorado Child Care Contribution Credit
The Colorado Child Care Contribution Credit (5C) was established to encourage greater private support of Colorado child care programs, like those provided to the community by JEWISHcolorado.
Because specific monetary contributions made to us qualify for this tax credit, you can decrease the after-tax cost of your gifts by more than 50 percent. The IRS requires a minimum gift of $250 to qualify for this tax credit. Pledge today and pay by December 31 to ensure you receive the full benefit.
The credit means that half of your donation—as long as it is designated for a 5C program—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, meaning your donation is even more beneficial.
Simplified, that means if you donate $10,000 to any of those two JEWISHcolorado 5C programs, you would then be entitled to a $5,000 tax credit:
$1,000 donation = $500 tax credit
$15,000 donation = $7,500 tax credit
$100,000 donation = $50,000 tax credit
5C Guidelines
- JEWISHcolorado will send 5C statement to any qualifying donation at or over the $1,000 minimum.
- 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, JEWISHcolorado 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 “Child Care Contribution Credit” in the memo line of your check or on your pledge card. If you are giving online, please make a note in the Comment box that your gift is for the Child Care Contribution Credit (5C).