Colorado Childcare Tax Credit
How to claim the Colorado Childcare Tax Credit
(And get 70% of your donation back in total tax savings.)
Step One. Donate $1,000 or more to Evergreen Country Day.
Step Two. Evergreen Country Day will send you a certification of your tax credit eligibility. This form (Colorado form DR 1317) will note that 50% of your donation can be taken as a direct tax credit, lowering your tax bill dollar for dollar. If your tax due is $1,000 in 2017, and your Child Care Tax Contribution credit is $1,000, you will owe only $500 in taxes!
Step Three. File Colorado tax form 104CR along with your state return, noting the amount from the form DR 1317 we provided you.
Step Four. Note the tax credit amount on line 35 of your state tax return, and subtract that amount from your taxes.
Step Five. Claim the charitable contribution, too! That’s right, this tax credit does not change your ability to use the same donation as an itemized deduction to your income, saving you even more in taxes.
The result? A net return to you of your donation of over 70%! If you donated $1,000, the cost to you ultimately would be only $295 if you are in the 35% tax bracket. (Results vary slightly based on tax bracket.)
What’s the catch? Not much. The donation must be cash, check or credit card. Gifts of stock or other securities, labor or equipment are not eligible. You cannot claim a same-year credit in excess of your Colorado tax liability for that year (although unused credit may be carried forward up to five years ending in 2019).