Dependent Care Credit Calculator
Calculate your Child and Dependent Care Credit (Form 2441) for 2025 or 2026. OBBBA raises the top rate from 35% to 50% starting in 2026. Compare with Dependent Care FSA savings to find the strategy that saves you the most on childcare expenses.
Dependent Care FSA contributions reduce eligible credit expenses dollar-for-dollar.
Leave blank to auto-calculate from AGI. Used for DCFSA savings estimate.
Optional. Included in DCFSA savings comparison.
Care Credit Amount
$60020% credit rate on $3,000 eligible
DCFSA Tax Savings
$0$0 contribution at 12% + FICA
Combined Savings
$600Credit + DCFSA total benefit
| Strategy | DCFSA | Credit | Total Savings |
|---|---|---|---|
| Credit only (no DCFSA) | $0 | $600 | $600 |
| DCFSA only (no credit)Best | $983 | $0 | $983 |
| Max DCFSA + credit on remaining | $983 | $0 | $983 |
The Child and Dependent Care Credit (Form 2441) is a non-refundable credit for working parents who pay for the care of children under 13 or disabled dependents so they can work or look for work.
IRC §21(d) also caps work-related expenses at the LOWER-earning spouse's own earned income (not household AGI) for joint filers — e.g. if one spouse earned only $2,000, eligible expenses can't exceed $2,000 regardless of the $3,000/$6,000 limit. This calculator uses AGI only and doesn't collect each spouse's individual earned income, so it can overstate the credit for couples with a low- or non-earning spouse; consult a tax professional if that applies to you.
Expense limits:
- 1 qualifying person: up to $3,000 in expenses
- 2 or more qualifying persons: up to $6,000 in expenses
Credit percentage (2025):
- 35% for AGI of $15,000 or less
- Decreases by 1% per $2,000 (or fraction) above $15,000
- Floors at 20% for AGI over $43,000
DCFSA interaction:
If you contribute to a Dependent Care FSA, those amounts reduce your eligible expenses for the credit dollar-for-dollar. With 1 child and $5,000 in DCFSA, you have $0 left for the credit ($3,000 limit minus $5,000). With 2+ children, you may still have up to $1,000 in remaining eligible expenses ($6,000 minus $5,000).
Both spouses must have earned income to claim the credit (or be a full-time student or disabled). MFS filers generally cannot claim the credit unless they lived apart from their spouse for the last 6 months of the year. This calculator doesn't take your actual tax liability as an input — because the credit is non-refundable, the amount shown assumes you owe at least that much federal tax.
Frequently asked questions
What is the Child and Dependent Care Credit?
The Child and Dependent Care Credit (Form 2441) is a non-refundable federal tax credit for working parents who pay for the care of children under 13 or disabled dependents in order to work or look for work. The credit is 20-35% of up to $3,000 in expenses for one qualifying person or $6,000 for two or more qualifying persons, depending on your adjusted gross income.
How much is the Dependent Care Credit for 2025?
For 2025 (pre-OBBBA rates), the maximum credit is $1,050 for one qualifying person (35% of $3,000) or $2,100 for two or more qualifying persons (35% of $6,000). These maximum amounts apply only if your AGI is $15,000 or less. At higher incomes, the credit percentage decreases: it drops to 20% once AGI exceeds $43,000, giving a maximum credit of $600 (one person) or $1,200 (two or more).
How does OBBBA change the Dependent Care Credit for 2026?
The One Big Beautiful Bill Act (OBBBA, P.L. 119-21 §70405) raises the top Child and Dependent Care Credit rate from 35% to 50%, effective for tax years beginning after December 31, 2025 — so 2026 is the first year it applies. The $3,000/$6,000 expense limits are unchanged. The 50% rate applies at AGI $15,000 or less, steps down to a 35% plateau by AGI $43,001, holds at 35% through $75,000 ($150,000 MFJ), then steps down again to the unchanged 20% floor once AGI exceeds about $103,000 ($206,000 MFJ). At the lowest incomes, the maximum credit rises from $1,050 to $1,500 (one person) or $2,100 to $3,000 (two or more).
Can I claim both the DCFSA and the Dependent Care Credit?
Yes, but DCFSA contributions reduce your eligible expenses for the credit dollar-for-dollar. If you contribute $5,000 to a DCFSA with one qualifying child, you have no remaining eligible expenses for the credit ($3,000 limit minus $5,000 = $0). With two or more children, you can still claim the credit on up to $1,000 in remaining expenses ($6,000 limit minus $5,000). The optimal strategy depends on your income and tax rates.
What expenses qualify for the Dependent Care Credit?
Qualifying expenses include daycare, preschool (not kindergarten or above), before- and after-school care, summer day camps (not overnight camps), babysitters, nannies, and au pairs for children under 13. Care for a disabled spouse or dependent of any age also qualifies. The expenses must be work-related — they must enable you (and your spouse, if married) to work or look for work.
Sources
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