Maximize Your Dollars with the Colorado Child Care Contribution Tax Credit

Thanks to Colorado’s Child Care Contribution Tax Credit (CCCTC), annual gifts of $500 or more to ISDenver may be eligible for a 50% Colorado state income tax credit.*

Established to encourage private support of Colorado child care programs, like those provided by ISDenver, the CCCTC enables you to decrease the after-tax cost of your contribution by offsetting a reduction of your Colorado income taxes.  

*Gifts to the Staff Appreciation Fund do not qualify for the CCCTC.

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Tax Savings Examples*
 

Contribution to ISDenver	$500	$1,000	$2,500	$5,000	$10,000	$25,000
Colorado Child Care Contribution Tax Credit (50%)	-$250	-$500	-$1,250	-$2,500	-$5,000	-$12,500
Colorado State Income Tax Deduction	-$11	-$22	-$55	-$110	-$220	-$550
Federal Income Tax Deduction*	-$80	-$160	-$400	-$800	-$1,600	-$4,000
After Tax Cost of Donation	$159	$318	$795	$1,590	$3,180	$7,950
Percentage of Cost/Total Donation	31.8%

*For illustrative purposes only, based on a 32% tax bracket.  Please consult with your tax adviser to determine how the credit will affect you personally.  Your tax savings may be more or less than these typical examples. The federal income tax deduction is an additional benefit for those individuals who itemize their tax deductions on their federal return. 

Individuals who use the standard deduction will realize a different savings/deduction as they will still receive a 50% tax credit against their Colorado state income tax, but they will not receive the federal tax benefit. Always consult a tax professional for your individual circumstances.
 

What does this mean? It means your donation can go much further than you might think. For example, a $1,000 contribution to ISDenver may cost you only $318 (based on the chart above)!

 

 

For more information, please visit the Colorado Department of Revenue website. 

ISDenver issues a single Colorado Child Care Tax Credit document with all of your qualifying donations combined. The gift date listed is the most recent qualifying gift date. If you require this form for each qualifying gift, we can still provide this upon request.

The International School of Denver is a 501(c)3 nonprofit organization and independent school. Your philanthropic investment in our community is tax deductible to the extent allowed by the law.