Software Error: Colorado Child Care Contribution Credit

[mikmarlam]

Colorado offers a 50% Tax Credit for donations under its Child Care Contribution Credit program (e.g.  you get $250 credit for a $500 donation).  After you enter the full donation amount, as prompted by the program, the software does not apply the 50% reduction but instead incorrectly gives you full credit for the donation potentially resulting in underpayment of taxes or a bigger refund than you are due.

[LenaH]

The amount you have to enter in TurboTax is the amount from Line 3 of the Form DR 1317. As shown in the screenshot below, Line 3 of the DR 1317 is 50% of your qualifying contribution amount. TurboTax correctly uses the amount entered on the screen, since the 50% limitation was already applied.