Colorado Child Care Contribution Credit (5C)
The Colorado Child Care Contribution Credit, commonly referred to as the 5C tax credit, was established to encourage greater private support of Colorado child care programs, like those provided by the Boulder JCC. Because monetary contributions to the Boulder JCC qualify for this tax credit, you may be able to decrease the after-tax cost of your gifts by more than 50%. Watch the video below to learn more about the 5C tax credit:
Enter your donation amount and tax rate to calculate your projected savings below*:
*Please consult with your tax adviser to determine how the credit will affect you personally.
| Itemizing Federal Deduction | Taking Standard Deduction | |
| Donation amount | $ | $ |
| Federal tax rate |
%
|
NA
|
| CO tax rate |
%
|
%
|
| CO tax credit | $ | $ |
| Savings from Federal deduction** | $ | NA |
| Savings from Colorado deduction | $ | $ |
| Savings this year | $ | $ |
| Reduction of Federal deduction for CO tax on next year's return | $ | NA |
| Net savings | $ | $ |
|
TOTAL COST TO DONOR*
|
$
|
$
|
*Use this helpful chart if you itemize your taxes. Your tax savings may be more or less than this typical example. Please consult with your tax adviser.
**The Federal Deduction is only eligible for the portion of the donation that is not being credited to your Colorado taxes.
The effect of the credit is that half of your donation to the Boulder JCC - as long as it is designated for the credit - 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.
The Boulder JCC will use your gift to:
- Provide financial assistance to families who cannot afford to pay the full program fee.
- Operate and/or expand preschool, summer day camp, holiday vacation child care, kindergarten, and school age care, and before and after school programs.
- Train preschool teachers and professionals.
Guidelines:
- 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, the Boulder JCC 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 donation card. If giving online, please note that your gift is for the Child Care Contribution Credit (CCCC) option.
You should always consult with your tax adviser to determine how the credit will affect you. Contact Heidi Dormody, Senior Director of Development, at heidi.dormody@boulderjcc.org or (720) 749-2541 for more information.