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Only 4 Days Left…

That’s right, there are only four days left to make a donation that will qualify for the Colorado Child Care Contribution Credit — a 50% credit against your Colorado state income tax.

Why only four days left?  Because when the credit was renewed in 2008, the State Legislature put in a limitation: starting in 2011, the state’s budget office must forecast that the state will run a surplus in a given year in order for the credit to be available.  The forecast is made before the end of each prior year (in this case, 2010), and the forecast for 2011 is for a deficit.  So, the credit won’t be available for 2011.

The Colorado Child Care Contribution Credit (known as “5C”) makes a gift to a qualifying organization incredibly tax efficient.  This means that for a typical taxpayer, a $1,000 gift costs the same after tax savings as a $288 gift to a non-qualifying organization: $203.

Child Care Contribution Credit Tax Savings*
(Example assumes 25% Federal tax bracket and taxpayer itemizes deductions.)

Without 5C With 5C
Contribution $288 $1,000
Colorado Child Contribution Tax Care Credit (50%) $0 $500
Charitable Deduction Federal Tax Savings $72 $250
Charitable Deduction Colorado Tax Savings $13 $47
After Tax Costs of Gift
$203 $203

Situations vary; donors should consult their tax advisors for advice about how the credit affects their tax picture. *Example courtesy of Allied Jewish Federation of Colorado.

So, please give this some thought as the clock ticks down on 2010.  Boulder organizations that qualify for the Colorado Child Care Contribution Credit include the Boulder Jewish Community Center and the Boulder Jewish Day School.  Please visit their web sites to learn more.  But don’t delay… just four days left.

About Editor

I'm David Fellows, and I've served as a writer, photographer and/or an editor on my junior high and high school newspapers; the Daily Trojan at USC (where I earned my journalism degree); the student newspaper at the Anderson School at UCLA (where I earned my MBA); and I've written and edited countless business documents and presentations in the ensuing twenty years. I was also a professional photographer from 1978 to 1988 (although you never really stop...). I've been involved Jewishly since my bris and in Boulder since 1995. I'm married to my Executive Director Cheryl, and we have two children, Lauren and Ethan.

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