My child and dependent care credit?

How it works

The calculator follows Form 2441 with the 2026 rules of 26 U.S.C. 21 and 129 as amended by P.L. 119-21.

1. Earned income limits. Your earned income; on a joint return also your spouse's (an empty spouse box counts as $0). For the other two statuses the spouse limit is your own earned income again.
2. Benefits excluded from income (Part III) = the smallest of: your employer dependent care benefits (empty counts as $0), $7,500 (also for "Married, separate, lived apart": that filer is not considered married, 26 U.S.C. 129(a)(2)(C) and 21(e)(4)), your care expenses, your earned income, and your spouse's earned income on a joint return.
3. Taxable benefits = employer benefits − the excluded benefits.
4. Dollar limit left (line 29) = $3,000 (one qualifying person) or $6,000 (two or more) − the excluded benefits, not below $0.
5. Expenses used (line 6) = the smallest of: the dollar limit left, care expenses − the excluded benefits, your earned income, and your spouse's earned income on a joint return.
6. Credit rate (line 8). Start at 50%. If AGI is over $15,000, take off 1 point for each $2,000 or part of $2,000 of the excess (⌈(AGI − 15,000) ÷ 2,000⌉), but not below 35%. Then, if AGI is over $75,000 ($150,000 married filing jointly), take off 1 more point for each $2,000 ($4,000 joint) or part of it (⌈excess ÷ step⌉), but not below 20%. "Married, separate, lived apart" and "Single or head of household" use the $75,000 and $2,000 figures.
7. Credit before the tax limit (line 9a) = expenses used × the credit rate ÷ 100.
8. Child and dependent care credit (line 11) = the credit before the tax limit, or the smaller of it and your tax before credits when you type that (the credit is not refundable).

Exact arithmetic. Every amount is read as the exact decimal you typed; the steps of $2,000 or part are counted exactly, and the results are rounded once to cents, half up. If any money result (the credit, expenses used, the credit before the limit, excluded or taxable benefits, the dollar limit left) is not $0 but too small to show as a number, there is no answer: 'A result is too small to show as a number: check the amounts.'

Figures that change each year

None of these figures is indexed for inflation; they change only when the law changes.

The 2026 Form 2441 and Publication 503 are not out yet; the form steps above are those of the 2025 form with the 2026 rates of the statute.

When the data is out of date

After April 15, 2027 the page keeps using the 2026 rules and says so above the result.

Assumptions

• Tax year 2026. Expenses are work-related and paid in 2026 for qualifying persons, to a provider who is not your spouse, your dependent or your child under 19; prepaid or late-paid expenses for other years are left out.
• Employer benefits are all for 2026 care, with nothing forfeited or carried over, and none are deducted on Schedule C, E or F.
• A spouse who was a full-time student or unable to care for themselves is entered as $250 for each such month ($500 with two or more qualifying persons).
• Amounts are between −$1 trillion and $1 trillion (AGI may be below $0). An estimate, not tax advice.

Worked examples by hand

Married filing jointly, two children, $8,000 of daycare, AGI $95,000, earned incomes $55,000 and $40,000. No benefits, so the dollar limit is $6,000 and expenses used = the smallest of 6,000, 8,000, 55,000 and 40,000 = $6,000. Rate: AGI is $80,000 over $15,000, 40 steps, so 50 − 40 would be 10, held at 35%; AGI is not over $150,000. Credit = 6,000 × 35% = $2,100.

Single, one child, $4,000 of care, AGI and earned income $14,000, tax before credits $0. Expenses used = $3,000; rate 50%; credit before the tax limit = $1,500; the tax is $0, so the credit is $0.

Single, one child, $5,000 of care, AGI $30,500, tax $1,200. Expenses used = $3,000. AGI is $15,500 over $15,000: ⌈15,500 ÷ 2,000⌉ = 8 steps, so 42%. Credit before the limit = 3,000 × 42% = $1,260; limited by the tax to $1,200.

Married filing jointly, two children, $9,000 of care, a $5,000 dependent care FSA, AGI $180,000. Excluded benefits = $5,000; dollar limit left = 6,000 − 5,000 = $1,000; expenses used = the smallest of 1,000 and 9,000 − 5,000 = $1,000. Rate: 35% after the first phase-down; AGI is $30,000 over $150,000, ⌈30,000 ÷ 4,000⌉ = 8, so 27%. Credit = $270.

Married, separate, lived apart, two children, $20,000 of care, a $5,000 dependent care FSA, AGI $95,000, earned income $55,000. Living apart, you count as unmarried, so the limit is $7,500 and excluded benefits = $5,000; taxable benefits = $0. Dollar limit left = 6,000 − 5,000 = $1,000; expenses used = $1,000. Rate: 35% after the first phase-down; AGI is $20,000 over $75,000, ⌈20,000 ÷ 2,000⌉ = 10, so 25%. Credit = 1,000 × 25% = $250.

Single, one child, $3,000 of care, AGI $250,000. Rate: 35%, then ⌈175,000 ÷ 2,000⌉ = 88 points would go below 20%, so 20%. Credit = 3,000 × 20% = $600.