Donations to Seeds of Learning may qualify for a 50% Colorado tax credit
For tax year 2014 one-half of any donor contribution to Seeds of Learning will result in a direct reduction to Colorado tax liability. And 75% of any unused donation credits from 2010 through 2013 can be added to the credit.
To qualify you must have a Colorado tax liability equal to or greater than the credit. In addition, if you itemize deductions on your Federal tax return, there is another tax benefit.
For example, for those in the 25% Federal tax bracket, a $1,000 donation would result in a $750 savings- $500 on Colorado taxes and $250 on Federal taxes. This Colorado tax law is a win-win for those who support and who provide early education. Seeds of Learning uses generous donations to continue to educate at-risk children and care for toddlers, while donors like you are rewarded with an excellent tax break.
Be sure to give your tax preparer the tax credit certification form DR 1317, furnished by Seeds of Learning at year-end, as evidence of your donation.
Example: Gift of $5,000
(illustration 35% Federal tax bracket)*
*Situations vary; consult your tax advisor.
Colorado State Income Tax Savings : $232
Colorado Income Tax Credit: $2,500
Federal Income Tax Savings*: $794
Reduced Federal and Colorado Income Tax: $3,526
After-tax Cost of giving $5,000: $1,474