Donations to Parents Challenge's K-6 scholarship program are eligible for Colorado's Child Care Tax Credit.
Program Benefits:
50% tax credit on all cash donations to K-6 scholarships
Considerable tax savings
Excess tax credits may be carried forward for up to 5 years
Program Guidelines:
Minimum Donation: $500 annually
Maximum Donation: $100,000 annually
Individuals and Corporations may take advantage of the program
Payroll deductions and stock donations do not apply
Parents Challenge Gift Example
Sample Gift Amount $5,000
Colorado State Income tax deduction $ 230
Colorado Income tax credit $2,500
Federal Income tax deduction $ 680
(30% tax bracket assumption)
Total Tax Benefit $3,410
After Tax Cost of Gift $1,590
Since each taxpayer's situation is unique, Parents Challenge strongly encourages you to confer with your tax advisor to discuss your gift and the benefits of this Colorado Child Care Tax Credit to you. Federal tax deduction is lowered because of the add-back effect of reduced state taxes. The above example is for the sole purpose of providing a potential tax benefit scenario and should not be construed as tax advice.