Colorado Child Care Contribution 50% Tax
Tax Credits for Gifts to Boys & Girls Club/Girls Inc.
of Pueblo County & Lower Arkansas Valley
A 50% Colorado State Income Tax Credit is available to donors who make monetary contributions to qualifying Boys & Girls Clubs in Colorado.
The effect of the credit is that half of your donation to the Club is offset by a reduction of your Colorado income taxes*. In addition, you will still be able to claim your full contribution as a charitable deduction on your federal and state income tax returns if your itemize deductions.
The credit is available under the provision so the Colorado Child Care Contribution Credit created for the purpose of promoting child care in Colorado.
TAX SAVING EXAMPLES
The following examples are for various tax brackets for 2002. Please consult with your tax advisor.
|
Federal Income Tax Bracket |
30% |
5% |
38.6% |
| Contribution | $1000 | $1000 | $1000 |
| Colorado Child Care Credit | ($500) | ($500) | ($500) |
| Deduction Colorado Tax Saving | ($ 46) | ($ 46) | ($ 46) |
| Deduction Federal Tax Saving | ($300) | ($300) | ($300) |
| Related Federal Tax Effect* | $164 | $191 | $211 |
| After Tax Costs of Gift to Club | $318 | $295 | $279 |
| Total Tax Saving | $682 | $705 | $721 |
*Lower state income taxes mean lower state tax deductions for federal tax purposes.
GUIDELINES
-
The maximum credit your 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. The law creating the Child Care Contribution Credit expires at the end of 2009.
-
Gifts must be monetary donations. In-kind gifts, such as stock or other securities, labor, or equipment are not eligible. contributions for which and Enterprise Zone Credit is taken are also not eligible for this Credit.
-
In the case of donations to the Club for such events as Steak n' Burger, only the deductible portion of your payment, reduced by the value of goods and services you received, will be eligible for the Credit.
-
As required by law, the Club will provide each donor with a signed statement stating the amount of the monetary contribution eligible purpose for which the contribution will be used. The statement does no have to be filed with your Colorado tax return if you file electronically, but must be made available to the Colorado Department of Revenue upon request.
For more information, please call (719) 564-0055.