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Tax Benefits

Tax Benefits 2019-05-13T17:49:50-07:00

La Puente is fortunate to offer our supporters two different tax credit opportunities.  These credits apply even if you donate to us online!

 

What is a tax credit?

Unlike a tax deduction, which reduces your taxable income determined by your tax rate, a tax credit reduces your tax liability. In this way, a tax credit directly reduces the taxes due and functions like a check, payable to the Colorado Department of Revenue. The larger your tax credit, the more you subtract from the amount of tax you owe the government.

Earn a 50% Tax Credit

The state of Colorado allows you to take a 50% tax credit on your state income taxes when you donate to La Puente’s PALS Children’s Program. This tax credit is in addition to any tax deductions you claim. And, if your tax credit cannot be claimed for that tax year in which it was given, you can carry it forward to the next tax year. Learn more about the Childcare Tax Credit.

Earn a 25% Tax Credit

Donations from Colorado state tax payers to La Puente of $100 or more are eligible for a 25% Enterprise Zone tax credit.

Claim Your Tax Credit

Follow these steps to earn a tax credit on your donation:

    1. You must pay Colorado state taxes.
    2. Donate $100 or more to La Puente or any of La Puente’s programs for a 25% tax credit. Donate $100 or more to La Puente’s PALS Children’s Program for a 50% tax credit.
    3. For a 25% tax credit, make your check out to “Enterprise Zone” with either a general or a programmatic designation in the memo. For a 50% tax credit, make your check our to “PALS Children’s Program” with “Colorado Childcare Tax Credit” in the memo.
    4. Mail your donation to PO Box 1235, Alamosa, CO 81101.
    5. Be prepared to share your tax ID information with us, it is essential for processing the credit.
    6. We will send you a certificate of tax credit that you can use for your Colorado Income Tax Return.

The Math

A $1,000 gift through the Enterprise Zone provides:

  • Colorado State Income Tax Deduction: $46
  • Colorado State Income Tax Credit: $250
  • Federal Income Tax Deduction*: $150
  • Returned to you at tax time: $46

The net “after tax” cost of giving $1,000 is just $554

*assumes a 15% tax bracket

For more information regarding the tax benefits of giving, call Amanda Pearson at 719.588.5678 or email development@lapuente.net