Colorado Childcare Contribution Tax Credit (5C)
Annual gifts of $2,500 or more to Denver Jewish Day School are eligible for a 50% Colorado state income tax credit through the Colorado Child Care Contribution Credit (commonly referred to as the 5C tax credit). Pledge now and pay by the end of the calendar year to lower the out-of-pocket cost of your gift, while maximizing its benefits.
View the chart below to learn how it could impact you. As always, you should consult with your tax adviser to determine how the credit will affect you personally.
Tax Savings Examples:
*For illustrative purposes only, based on a 28% tax bracket. Your tax savings may be more or less than these typical examples. The Federal income tax deduction will impact individuals who itemize deductions on their taxes. If you are taking the standard deduction, you will not receive this savings/deduction on your taxes but are still eligible to receive the 50% credit on your Colorado Taxes. Always consult a tax professional regarding your individual circumstances.
**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 Denver JDS. Because monetary contributions of $2,500 or more to DJDS qualify for this tax credit, you may be able to decrease the after-tax cost of your gifts by more than 50 percent.
Please consult with your tax adviser to determine how the credit will affect you personally.
The effect of the credit is that half of your donation of $2,500 or more to DJDS - 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.
Denver Jewish Day School will use your gift to
- Provide financial assistance to families who cannot afford to pay full tuition.
- Train & pay our amazing faculty and staff.
- Continue to look for ways to innovate our educational model.
- 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, Denver JDS 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.
For more information, please call Krista Boscoe at (303) 919-0812.
You should consult with your tax adviser to determine how the credit will affect you.
For more information, consult your tax advisor or click here.