The Colorado Child Care Tax Credit is a great way to maximize your donation. In order to promote giving to nonprofit organizations that provide quality child care in Colorado, the state has offered a special 50% income tax credit to taxpayers who donate to qualifying programs. The effect of this credit is that half of your donation is offset by a dollar-for-dollar reduction of your Colorado income taxes. In addition, if you itemize your federal income tax returns, you may be able to claim the credit and receive a deduction.
Making a monetary donation to Big Brothers Big Sisters of Southwest Colorado entitles you to this Colorado Child Care Contribution Credit! Combined with other state and federal itemized tax deductions, this a great way to maximize your charitable giving. Anyone considering this credit should consult with their personal tax advisor to confirm the effects on their individual finances.
For more information, please visit the Colorado Department of Revenue FYI bulletin found here.