Child & Dependent Care Credit Calculator

Quick summary

The Child & Dependent Care Credit (CDCC) is a NON-refundable tax credit for working parents who pay for daycare, after-school programs, summer day camp, or other care that lets them work. OBBBA dramatically improved this credit for 2026 — raising the maximum rate from 35% to 50% of qualifying expenses.

It applies the new OBBBA 2026 phaseout: 50% credit at AGI ≤ $15K single / $30K MFJ, sliding down to 35% at $75K / $150K, then to a 20% floor at $103K / $206K. Expense cap remains $3,000 (1 qualifying person) / $6,000 (2+) — reduced by any Dependent Care FSA used. Coordinate carefully: the FSA gives ~30% combined federal+FICA savings, while the CDCC gives 20-50% federal savings.

Combined optimization: max DCFSA $5,000 first → claim CDCC on remaining expenses up to $1,000/$3,000 over the FSA limit.

Filing status

MFS cannot claim Child & Dependent Care Credit.

Qualifying care expenses

Daycare, summer day camp, after-school care

Qualifying persons

AGI (drives credit rate)

35% credit at $15K → 20% above $43K

DCFSA contribution

Reduces credit cap dollar-for-dollar

Your earned income

Spouse earned income (MFJ)

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How to use

1 Enter total qualifying child/dependent care expenses paid in 2026 (daycare, preschool, after-school, summer day camp, in-home care).
2 Enter number of qualifying persons (1 or 2+). Cap: $3,000 (1) or $6,000 (2+) per year.
3 Enter your AGI from Form 1040 line 11. OBBBA 2026 sliding rate: 50% at $15K (single) / $30K (MFJ), → 35% at $75K/$150K, → 20% floor at $103K/$206K.
4 Enter earned income (yours and spouse if MFJ). The credit is limited to the lower-earning spouse's income — student/disabled spouses get $250-$500/month deemed earned.
5 Enter Dependent Care FSA contribution (max $5,000). The expense cap is REDUCED by FSA used. Click Calculate to see eligible expenses, applicable rate, credit, FSA savings, and total combined benefit.

2026 OBBBA Major Upgrade — CDCC

OBBBA (signed July 2025) made the largest improvement to the CDCC since its creation. The credit became significantly more valuable for low and middle-income families:

Provision	Pre-OBBBA (2025)	OBBBA 2026
Maximum credit rate	35%	50%
Phase down start (single)	$15,000 AGI	$15,000 AGI
Mid phaseout	20% floor at $43K AGI	35% at $75K / $150K (single/MFJ)
Final phaseout floor	20% at $43K+ AGI	20% at $103K / $206K (single/MFJ)
Expense cap (1 child)	$3,000	$3,000 (unchanged)
Expense cap (2+ children)	$6,000	$6,000 (unchanged)
Refundability	Nonrefundable	Nonrefundable

2026 CDCC Rate by Income (OBBBA Sliding Scale)

AGI (Single / HoH)	AGI (MFJ)	Credit Rate	Max Credit (1 child / 2+ children)
≤ $15,000	≤ $30,000	50%	$1,500 / $3,000
$30,000	$60,000	~45%	$1,350 / $2,700
$50,000	$100,000	~40%	$1,200 / $2,400
$75,000	$150,000	35%	$1,050 / $2,100
$90,000	$180,000	~27%	$810 / $1,620
≥ $103,000	≥ $206,000	20%	$600 / $1,200

CDCC + DCFSA Coordination — Maximize Both

You can NOT claim the CDCC on expenses already covered by your Dependent Care FSA. But the FSA cap ($5,000) is LOWER than the CDCC cap ($6,000 for 2+) — so use BOTH:

Step	Detail
1. Max DCFSA	Contribute $5,000 (single/MFJ) — saves ~30% combined federal+FICA
2. Track all expenses	Daycare, after-school, summer camp invoices for the year
3. Subtract FSA used	For 2+ kids: $6,000 cap − $5,000 FSA = $1,000 left
4. Claim CDCC on remainder	$1,000 × 20-50% rate = $200-$500 additional credit
Combined benefit	FSA savings ($1,500 at 30%) + CDCC ($200-$500) = $1,700-$2,000

Qualifying Person and Expenses

Qualifying	Detail
Qualifying child	Under 13 at time of care; lives with you > half the year
Qualifying spouse	Mentally/physically incapable of self-care, lives with you > half year
Qualifying dependent	Disabled adult dependent who can't self-care
Eligible expenses	Daycare, preschool (not kindergarten+), after-school care, summer day camp (NOT overnight)
NOT eligible	Overnight camp, lessons (music, dance unless care-purpose), school tuition K+, food/clothing/medical
In-home care	Nanny qualifies if not your dependent; SS/Medicare withholding required (Schedule H)

CDCC vs Child Tax Credit — Different Credits

Don't confuse the two: Child Tax Credit (CTC) = $2,200/child under 17 (OBBBA permanent), refundable up to $1,700, phases out above $200K/$400K. Child & Dependent Care Credit (CDCC) = up to 50% of care expenses, $1,500-$3,000 max, nonrefundable. You can claim BOTH for the same child if otherwise qualified — they offset different costs.

FAQ

Q What is the Child & Dependent Care Credit in 2026?

A nonrefundable federal credit for working parents who pay for care of a child under 13 (or disabled spouse/dependent). OBBBA 2026 raised the maximum rate to 50% of expenses (was 35%). Cap: $3,000 (1 child) or $6,000 (2+) per year — minus any DCFSA used.

Q How much is the OBBBA child care credit?

For 2026, the credit ranges from 20% to 50% of qualifying expenses based on AGI. 50% credit if AGI ≤ $15K single / $30K MFJ. Phases down to 35% at $75K/$150K, then to 20% floor at $103K/$206K AGI. Maximum credit: $1,500-$3,000 depending on number of children.

Q Can I use both DCFSA and the Child Care Credit?

YES — but not on the same dollar of expenses. Best strategy: max DCFSA $5,000 first (saves ~30% combined fed+FICA), then claim CDCC on the remaining expenses up to $1,000 (1 child) or $1,000 (2+ kids since cap $6,000 - $5,000 FSA = $1,000 left).

Q What expenses qualify for the credit?

Daycare, preschool, before/after-school care, summer DAY camp (overnight does NOT qualify), in-home nanny (must be reported on Schedule H if W-2 wages), and care for disabled spouse/dependent. NOT eligible: kindergarten+, food, lessons (unless care-purposes), private school tuition.

Q Who qualifies as a "qualifying person"?

A child under 13 at time of care, OR a spouse mentally/physically incapable of self-care, OR a disabled dependent. Must live with you more than half the year (custody rules apply for divorced parents). Identify on Form 2441 with SSN.

Q Do I have to be working to claim CDCC?

YES — both spouses (MFJ) must have earned income, OR be a full-time student (5+ months), OR be physically/mentally incapable of self-care. Student/disabled spouses get $250/month deemed earned income (1 child) or $500/month (2+ kids).

Q How do I claim the CDCC?

File Form 2441 with your Form 1040. Provide care provider's name, address, and EIN/SSN. Track total expenses with receipts/contract. The credit appears on Schedule 3 line 6. Identify each qualifying person with SSN and amounts paid.

Q Can MFS filers claim Child Care Credit?

Generally NO — both spouses must file jointly to claim CDCC unless they're separated and live apart for the last 6 months of the year. Choosing MFS to avoid spouse's tax liability eliminates this and other family credits (CTC partially affected). Plan filing status carefully.