About the Child and Dependent Care Credit Calculator
This calculator estimates the federal Child and Dependent Care Credit you claim on IRS Form 2441 for daycare, preschool, after-school programs, summer day camp or adult care that lets you (and your spouse) work or look for work. Enter your adjusted gross income, the number of qualifying children or dependents, what you paid for care and any tax-free benefits from an employer dependent care FSA.
For tax year 2026 the One Big Beautiful Bill Act raised the top credit rate to 50% of eligible expenses. The rate falls by one point for each $2,000 of AGI over $15,000 until it reaches 35%, and then falls again — by one point per $2,000 ($4,000 on a joint return) above $75,000 ($150,000 joint) — to a floor of 20%. These are the rules in Internal Revenue Code section 21 as amended for tax years beginning after 2025; IRS forms and tables for 2026 follow them. The 2025 rules (35% sliding to 20%, per Publication 503) are included so you can compare.
Eligible expenses are capped at $3,000 for one qualifying person or $6,000 for two or more, reduced by any FSA benefits you excluded from pay, and cannot exceed the earned income of the lower-earning spouse. The credit is nonrefundable: it can reduce your income tax to zero but not below, and the calculator does not check your tax bill, so the credit shown is the most you could use. Married couples generally must file jointly to claim it.
With the default inputs, the estimated credit is $2,100.00. Change any value above to recalculate instantly.
How to use the child and dependent care credit calculator
- 1Choose the tax year and your filing status.
- 2Enter your AGI and the number of qualifying children or dependents.
- 3Enter the care costs you paid and any dependent care FSA benefits on your W-2.
- 4Enter the earned income of the lower-earning spouse.
- 5Read the credit and percentage, and check the chart to see how AGI changes it.
Formula and method
Eligible expenses are the smallest of three numbers: what you actually paid for care (less any dependent care FSA benefits you excluded from income), the dollar cap of $3,000 for one qualifying person or $6,000 for two or more (also reduced by FSA benefits), and the earned income of the lower-earning spouse.
The credit percentage depends on AGI. For 2026, it starts at 50% and drops one percentage point for each $2,000 (or part of $2,000) of AGI above $15,000 until it reaches 35%. Above $75,000 of AGI ($150,000 for joint filers) it drops another point per $2,000 ($4,000 joint) down to a 20% floor. For 2025 the rate starts at 35% and drops to 20% using the same $15,000 threshold and $2,000 steps.
- cap
- $3,000 (one person) or $6,000 (two or more)
- FSA
- Excluded dependent care benefits (W-2 box 10)
- rate
- Credit percentage based on AGI
Worked examples
Two kids, $120k joint AGI, 2026
Care costs of $9,000 are capped at $6,000 for two children. AGI of $120,000 is past the first phase-down (35%) but below the $150,000 joint threshold for the second, so the credit is 35% × $6,000 = $2,100.
Single parent, $30k AGI, one child
AGI is $15,000 over the threshold, which is 7.5 steps of $2,000 — rounded up to 8 — so the 2026 rate is 50% − 8 = 42%. On the $3,000 cap for one child the credit is $1,260.
High earners with a $5,000 FSA, 2026
The $6,000 cap is reduced by $5,000 of FSA benefits to $1,000. AGI is $50,000 over $150,000 — 12.5 steps of $4,000, rounded up to 13 — so the rate is 35% − 13 = 22%, and the credit is $220 on top of the FSA tax savings.
Frequently asked questions
How much is the child and dependent care credit for 2026?+
For 2026 the credit is 20% to 50% of up to $3,000 of care costs for one qualifying person or $6,000 for two or more, so the maximum is $1,500 or $3,000 for families with AGI of $15,000 or less.
Who is a qualifying person?+
A child under 13 whom you claim as a dependent, or a spouse or dependent of any age who is physically or mentally unable to care for themselves and lived with you for more than half the year.
Can I use a dependent care FSA and the credit?+
Yes, but not for the same dollars. FSA benefits you exclude from income reduce both your eligible expenses and the $3,000/$6,000 limit. With two children and a $5,000 FSA you can still claim the credit on up to $1,000 of extra costs.
Is the dependent care credit refundable?+
No. The federal credit is nonrefundable, so it can reduce your income tax to zero but any excess is lost. Some states offer their own refundable dependent care credits.
What expenses count for the credit?+
Daycare, preschool, before- and after-school care, babysitters and nannies (with their tax ID reported), and summer day camps count. Overnight camps, private school tuition for kindergarten and above, and payments to your own child under 19, your spouse or anyone you claim as a dependent do not.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.