Colorado Child Care Tax Credit Update
For the past several years, 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, you are still able to claim your full contribution on your federal and state income tax returns if you itemize your deductions. Gifts of stock do not qualify.
In December 2010, the state legislature suspended the program due to a projected lack of revenue growth in the state’s 2011 budget. Since then, the state legislature re-established the program with limitations. Gifts made to qualifying child care programs during tax years 2011 and 2012 will be eligible for a deferred credit. The state is predicting that taxpayers will be able to claim deferred credits (from contributions given during tax years 2011 and 2012) as early as tax year 2013, but final determination is subject to change based on future legislative action.
If you would like your gift to St. Anne’s 2012-2013 Annual Campaign to be earmarked for the tax credit, please write “Child Care Tax Credit” in the memo line of your check, or somewhere on your pledge envelope. If giving online at www.st-annes.org, please select the Child Care Tax Credit option.
Please note that the tax credit will be applied to the year in which the gift is received by St. Anne’s Episcopal School.
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 website at http://www.colorado.gov/cs/Satellite/Revenue/REVX/1193047059436 and click on “Income FYI Publication 35.”