# My child and dependent care credit?

Works out the 2026 child and dependent care credit on Form 2441: care expenses up to $3,000 or $6,000, limited by earned income and employer benefits, times the new 50% to 20% credit rate by AGI.

- Page: https://www.acalculator.org/finance/dependent-care-credit-calculator
- JSON spec: https://www.acalculator.org/finance/dependent-care-credit-calculator.json
- Version: 7e1d6288ed37

## Default answer

Example with the default inputs (Filing status Married filing jointly, Qualifying persons Two or more, Care expenses paid $8,000.00, Adjusted gross income (AGI) $95,000.00, Your earned income $55,000.00, Spouse’s earned income $40,000.00): With $8,000.00 of care expenses and $95,000.00 of AGI, your 2026 child and dependent care credit is $2,100.00.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| status | Filing status | Married couples must file jointly to claim the credit, unless they lived apart for the last 6 months of the year. |
| persons | Qualifying persons | Children under 13, or a spouse or dependent unable to care for themselves, whose care you paid for. |
| expenses | Care expenses paid | Work-related care expenses you paid in 2026: daycare, preschool, before and after school care, day camp. |
| agi | Adjusted gross income (AGI) | Your 2026 adjusted gross income (Form 1040 line 11); it sets the credit rate. |
| earned | Your earned income | Your wages and net self-employment earnings for 2026. |
| spouse | Spouse’s earned income | Your spouse’s earned income; a full-time student or disabled spouse counts $250 a month ($500 with two or more persons). |
| benefits | Employer dependent care benefits (optional) | Dependent care benefits your employer paid or put in a dependent care FSA (W-2 box 10). |
| tax | Tax before credits (optional) | Your income tax before credits (Form 1040 line 18) minus any foreign tax credit; the credit cannot be more. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| credit | Child and dependent care credit | Expenses used × the credit rate, but no more than your tax when you type it (Form 2441 line 11). |
| used | Expenses used | The smallest of your expenses (less excluded benefits), the dollar limit (less excluded benefits) and each earned income (line 6). |
| rate | Credit rate | 50% at AGI up to $15,000, down to 35%, then down to 20% at higher AGI (line 8). |
| beforeLimit | Credit before the tax limit | Expenses used × the credit rate (line 9a). |
| excluded | Benefits excluded from income | The smallest of your employer benefits, $7,500, your expenses and each earned income. |
| taxable | Taxable benefits | Employer benefits − the excluded part; they go on your W-2 wages line. |
| dollarLimit | Dollar limit left | $3,000 or $6,000 − excluded benefits, not below $0 (line 29). |

## Method

Excluded benefits = the smallest of employer benefits, $7,500, expenses and each earned income. Expenses used = the smallest of ($3,000 or $6,000 − excluded benefits), (expenses − excluded benefits), your earned income and your spouse’s. Rate = 50% − 1 point per $2,000 or part of AGI over $15,000 (not below 35%), then − 1 point per $2,000 ($4,000 joint) or part of AGI over $75,000 ($150,000 joint), not below 20%. Credit = expenses used × rate, no more than your tax.

## Assumptions

- Tax year 2026 (IRC 21 and 129 as amended by P.L. 119-21). Every amount is between −$1 trillion and $1 trillion; AGI may be negative.
- Expenses are work-related and paid in 2026 for qualifying persons, to a care provider who is not your spouse, your dependent or your child under 19. Expenses prepaid or paid late for another year are not included.
- 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 a month ($500 with two or more persons).
- With the tax box empty the credit is not limited by your tax; it is not refundable. An estimate, not tax advice.

## Worked examples

1. status = mfj, persons = 2, expenses = $8,000.00, agi = $95,000.00, earned = $55,000.00, spouse = $40,000.00 gives used = $6,000.00, rate = 35%, credit = $2,100.00, beforeLimit = $2,100.00. Source: 26 U.S.C. 21(a)(2) as amended by P.L. 119-21 section 70405 (50%, less 1 point per $2,000 or part of AGI over $15,000, not below 35%; less 1 point per $2,000, $4,000 joint, or part of AGI over $75,000, $150,000 joint, not below 20%), (c) and (d), https://www.law.cornell.edu/uscode/text/26/21 (AGI $95,000 is over $43,000, so 35%; not over $150,000 joint); IRS Instructions for Form 2441 (2025): Part II lines 3 to 11, the Credit Limit Worksheet, Part III dependent care benefits, https://www.irs.gov/instructions/i2441; Publication 503 (2025), https://www.irs.gov/publications/p503.
2. status = single, persons = 1, expenses = $4,000.00, agi = $14,000.00, earned = $14,000.00, tax = $0.00 gives used = $3,000.00, rate = 50%, beforeLimit = $1,500.00, credit = $0.00. Source: 26 U.S.C. 21(a)(2) as amended by P.L. 119-21 section 70405 (50%, less 1 point per $2,000 or part of AGI over $15,000, not below 35%; less 1 point per $2,000, $4,000 joint, or part of AGI over $75,000, $150,000 joint, not below 20%), (c) and (d), https://www.law.cornell.edu/uscode/text/26/21 (50% at AGI up to $15,000); IRS Instructions for Form 2441 (2025): Part II lines 3 to 11, the Credit Limit Worksheet, Part III dependent care benefits, https://www.irs.gov/instructions/i2441; Publication 503 (2025), https://www.irs.gov/publications/p503 (the credit is not refundable: Credit Limit Worksheet).
3. status = single, persons = 1, expenses = $5,000.00, agi = $30,500.00, earned = $30,500.00, tax = $1,200.00 gives used = $3,000.00, rate = 42%, beforeLimit = $1,260.00, credit = $1,200.00. Source: 26 U.S.C. 21(a)(2) as amended by P.L. 119-21 section 70405 (50%, less 1 point per $2,000 or part of AGI over $15,000, not below 35%; less 1 point per $2,000, $4,000 joint, or part of AGI over $75,000, $150,000 joint, not below 20%), (c) and (d), https://www.law.cornell.edu/uscode/text/26/21 (⌈15,500 ÷ 2,000⌉ = 8 points).
4. status = mfj, persons = 2, expenses = $9,000.00, agi = $180,000.00, earned = $100,000.00, spouse = $80,000.00, benefits = $5,000.00 gives excluded = $5,000.00, dollarLimit = $1,000.00, used = $1,000.00, rate = 27%, credit = $270.00, taxable = $0.00. Source: 26 U.S.C. 21(a)(2) as amended by P.L. 119-21 section 70405 (50%, less 1 point per $2,000 or part of AGI over $15,000, not below 35%; less 1 point per $2,000, $4,000 joint, or part of AGI over $75,000, $150,000 joint, not below 20%), (c) and (d), https://www.law.cornell.edu/uscode/text/26/21 (⌈30,000 ÷ 4,000⌉ = 8 points off 35%); IRS Instructions for Form 2441 (2025): Part II lines 3 to 11, the Credit Limit Worksheet, Part III dependent care benefits, https://www.irs.gov/instructions/i2441; Publication 503 (2025), https://www.irs.gov/publications/p503 (Part III lines 25 to 31).
5. status = mfs, persons = 2, expenses = $20,000.00, agi = $95,000.00, earned = $55,000.00, benefits = $5,000.00 gives excluded = $5,000.00, taxable = $0.00, dollarLimit = $1,000.00, used = $1,000.00, rate = 25%, credit = $250.00. Source: 26 U.S.C. 129(a)(2)(A) and (C) and 21(e)(4), https://www.law.cornell.edu/uscode/text/26/129; 26 U.S.C. 21(a)(2) as amended by P.L. 119-21 section 70405 (50%, less 1 point per $2,000 or part of AGI over $15,000, not below 35%; less 1 point per $2,000, $4,000 joint, or part of AGI over $75,000, $150,000 joint, not below 20%), (c) and (d), https://www.law.cornell.edu/uscode/text/26/21 (⌈20,000 ÷ 2,000⌉ = 10 points off 35%).
6. status = single, persons = 1, expenses = $3,000.00, agi = $250,000.00, earned = $250,000.00 gives used = $3,000.00, rate = 20%, credit = $600.00. Source: 26 U.S.C. 21(a)(2) as amended by P.L. 119-21 section 70405 (50%, less 1 point per $2,000 or part of AGI over $15,000, not below 35%; less 1 point per $2,000, $4,000 joint, or part of AGI over $75,000, $150,000 joint, not below 20%), (c) and (d), https://www.law.cornell.edu/uscode/text/26/21 (not below 20%).

## FAQ

### How is the child and dependent care credit calculated for 2026?

Take your work-related care expenses, up to $3,000 for one qualifying person or $6,000 for two or more, and no more than your earned income (or the lower of you and your spouse). Multiply by your credit rate: 50% at AGI up to $15,000, falling to 35%, and to 20% at higher incomes. Two children, $8,000 of daycare and a joint AGI of $95,000: 35% × 6,000 = $2,100.

### What changed for 2026?

P.L. 119-21 raised the top rate from 35% to 50% for tax years beginning after 2025. The rate now falls 1 point for each $2,000 (or part) of AGI over $15,000 down to 35%, then 1 more point for each $2,000 ($4,000 on a joint return) over $75,000 ($150,000 joint), down to 20%. The $3,000 and $6,000 limits did not change, and the dependent care FSA limit rose to $7,500.

### What is my credit rate at my income?

Up to $15,000 of AGI: 50%. The rate is 35% from just over $43,000 to $75,000 (to $150,000 on a joint return). Single filers reach 20% just over $103,000; joint filers just over $206,000. For example, AGI of $30,500 is $15,500 over $15,000, which is 8 steps of $2,000 or part, so 42%.

### Who is a qualifying person?

Your child under 13 whom you claim as a dependent, or a spouse or dependent of any age who cannot care for themselves and lived with you for more than half the year. You must pay for the care so that you (and your spouse) can work or look for work.

### How does a dependent care FSA change the credit?

Employer dependent care benefits you exclude from income (up to $7,500 in 2026, also when you are married, lived apart and file separately) come off both your expenses and the $3,000 or $6,000 limit. With a $5,000 FSA and two children, only $1,000 of the $6,000 limit is left for the credit.

### Is the credit refundable?

No. It can bring your income tax to $0 but not below, so the credit is limited by your tax (Form 1040 line 18, less any foreign tax credit). Type your tax before credits to apply that limit.

### Can married couples filing separately claim it?

Generally no; you must file jointly. A married person who lived apart from their spouse for the last 6 months of the year, paid more than half the cost of keeping up the home, and had a qualifying person living there can file separately and still claim it; pick that option. You then count as unmarried for the employer benefit exclusion too, so up to $7,500 of benefits is excluded, not $3,750.

## Sources

- 26 U.S.C. § 21, Legal Information Institute, as amended by P.L. 119-21 section 70405 for tax years beginning after December 31, 2025: (a)(2) the applicable percentage (50%, reduced by 1 point for each $2,000 or fraction of AGI over $15,000, not below 35%; further reduced by 1 point for each $2,000, $4,000 joint, or fraction over $75,000, $150,000 joint, not below 20%); (c) $3,000 and $6,000, less amounts excluded under section 129; (d) the earned income limit and the $250 or $500 a month for a student or disabled spouse; (e)(4) a married person filing separately who kept up the home of a qualifying person, with the spouse not a member of the household for the last 6 months, is not considered married. https://www.law.cornell.edu/uscode/text/26/21 (retrieved 2026-10-19)
- 26 U.S.C. § 129(a)(2), Legal Information Institute: (A) $7,500 ($3,750 for a separate return by a married individual) of dependent care assistance excluded, for tax years beginning after December 31, 2025 (P.L. 119-21 section 70404); (C) marital status follows section 21(e)(3) and (4), so the married person who lived apart is not married for this limit. https://www.law.cornell.edu/uscode/text/26/129 (retrieved 2026-10-19)
- IRS, One, Big, Beautiful Bill provisions: the child and dependent care credit enhancement (section 70405) raises the maximum credit rate from 35% to 50% from tax year 2026; the $3,000 and $6,000 limits stay. https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions (retrieved 2026-10-19)
- IRS, Instructions for Form 2441 (2025): Part II, the Credit Limit Worksheet (Form 1040 line 18 less the foreign tax credit), Part III dependent care benefits (its $2,500 separate-filer amount does not address a filer treated as unmarried; 26 U.S.C. 129(a)(2)(C) does). https://www.irs.gov/instructions/i2441 (retrieved 2026-10-19)
- IRS, Publication 503 (2025), Child and Dependent Care Expenses: qualifying persons, the earned income limit, married filing separately and living apart, the dollar limit less excluded benefits. https://www.irs.gov/publications/p503 (retrieved 2026-10-19)