Tax calculator

Free dependent care credit calculator

Enter your qualifying child-care expenses and AGI — this dependent care credit calculator applies the 20–35% credit rate to expenses up to $3,000 (1 dependent) or $6,000 (2+) and accounts for your employer DCFSA, updated live, as you type.

InputsLive
Gross pay (this period)
$
Federal income tax rate
%
Estimate from your tax bracket or W-4.
State income tax rate
%
Enter 0 if your state has no income tax.
Other deductions
$
Health insurance, 401(k), etc.
Result
Net pay
$3,267.5
Deductions: $1,732.5 · FICA: $382.5
Net pay$3,267.5
Federal tax$1,100
State tax$250
FICA (SS + Med)$382.5

Estimated only. Actual withholding depends on your W-4 elections, filing status, and local laws. Consult your payroll provider for exact figures.

Results are estimates. Consult a professional.

How it's calculated

How the dependent care credit calculator works

The Child and Dependent Care Credit (CDCC) offsets the cost of day care, after-school programs, babysitters, and summer day camps so you — and your spouse, if married — can work or look for work. The credit is a percentage of your qualifying care expenses, and that percentage depends on your Adjusted Gross Income (AGI).

The expense cap is $3,000 for one qualifying person or $6,000 for two or more. The credit rate ranges from 35% at lower incomes down to 20% at AGI above $43,000. Employer-provided dependent care flexible spending accounts (DCFSA) — up to $5,000 — reduce the qualifying expenses dollar-for-dollar before the credit is calculated.

Step 1: expense cap = $3,000 (1 dependent) or $6,000 (2+ dependents)
Step 2: adjusted expenses = expense cap employer DCFSA amount
Step 3: qualifying expenses = min(actual care expenses paid, adjusted expenses)
Step 4: credit rate = 35% minus 1% for each $2,000 of AGI above $15,000
(rate floors at 20% for AGI above $43,000)
Step 5: credit = qualifying expenses × credit rate
IRS Publication 503 — Child and Dependent Care Expenses (2024).
Example

Worked example: two children in day care, $55,000 AGI

Example: MFJ couple, 2 children, $55,000 AGI, $9,000 care costs

Jamie and Alex file jointly, have 2 children under 13 in full-time day care, and paid $9,000 in qualifying care expenses. Their AGI is $55,000. Neither employer offers a DCFSA.

Expense cap (2+ dependents) = $6,000
Adjusted expenses = $6,000 $0 DCFSA = $6,000
Qualifying expenses = min($9,000, $6,000) = $6,000
Credit rate: AGI $55,000 → above $43,000 → 20%
Credit = $6,000 × 20% = $1,200
$1,200 credit
Jamie and Alex receive a $1,200 non-refundable credit, reducing their federal tax bill by $1,200. If their tax liability were only $900, the credit would be limited to $900.
Quick reference

Credit percentage rates by AGI (2024)

The credit rate slides from 35% down to 20% as AGI rises from $15,000 to $43,000. Above $43,000 the rate remains 20% regardless of income — there is no phase-out to zero for this credit (unlike the child tax credit). The table shows the rate at each $2,000 AGI step.

AGI rangeCredit rateMax credit (1 dep.)Max credit (2+ dep.)
$0 – $15,00035%$1,050$2,100
$15,001 – $17,00034%$1,020$2,040
$17,001 – $19,00033%$990$1,980
$19,001 – $21,00032%$960$1,920
$21,001 – $23,00031%$930$1,860
$23,001 – $25,00030%$900$1,800
$25,001 – $27,00029%$870$1,740
$27,001 – $29,00028%$840$1,680
$29,001 – $31,00027%$810$1,620
$31,001 – $33,00026%$780$1,560
$33,001 – $35,00025%$750$1,500
$35,001 – $37,00024%$720$1,440
$37,001 – $39,00023%$690$1,380
$39,001 – $41,00022%$660$1,320
$41,001 – $43,00021%$630$1,260
Over $43,00020%$600$1,200

Expense caps: $3,000 (1 dependent), $6,000 (2+ dependents). Rates are the same for all filing statuses. Source: IRS Publication 503, Form 2441 (2024).

Practical tips

Tips for maximizing the dependent care credit

The interaction between the DCFSA and the credit catches many families off guard. These tips help you get the most value from the two benefits combined.

  • DCFSA vs credit: run the numbers both ways — A DCFSA saves your marginal tax rate (e.g., 22% on $5,000 = $1,100) but reduces the expenses eligible for the credit. The credit rate at high incomes is only 20%, so at the 22% bracket the DCFSA is typically more valuable. At low incomes where the credit rate is 30%+, using the credit instead of the DCFSA may save more.
  • Summer day camp counts; overnight camp does not — Day camp fees for children under 13 are qualifying expenses. Overnight camp, tutoring, and private school tuition for kindergarten and above are not.
  • Disabled dependents have no age limit — If your spouse or a dependent of any age is physically or mentally incapable of caring for themselves, their care costs also qualify — with the same dollar caps.
  • Both spouses need earned income — For MFJ filers, both spouses must have earned income or be a full-time student or disabled. A stay-at-home spouse is treated as earning $250/month (1 qualifying person) or $500/month (2+) during months they were a student or disabled.
  • Keep provider records — Form 2441 requires each care provider's name, address, and Tax Identification Number (TIN or SSN). Payments to your own child under age 19 or to your spouse never qualify.
Accuracy & limits

Accuracy and limitations

This calculator applies the 2024 CDCC rules: expense caps of $3,000/$6,000, the 15-step credit rate table from AGI $15,000 to $43,000, the 20% floor rate above $43,000, and the $5,000 DCFSA offset. It estimates your credit based on the inputs you provide.

The tool does not verify that care providers are eligible (it excludes payments to your spouse, your child under 19, or your dependent), confirm that qualifying persons meet the relationship or residency tests, or model the interaction with other credits such as the child tax credit or earned income credit. The credit is claimed on Form 2441 (attached to Form 1040). This is a planning estimate — not tax advice. Confirm your credit amount with IRS Publication 503 or a qualified tax professional.

Glossary

Dependent care credit terms defined

A non-refundable federal tax credit of up to 35% of qualifying care expenses paid so that you (and your spouse) can work or look for work. Calculated on Form 2441.
A child under age 13 whom you can claim as a dependent, or your spouse or any other dependent of any age who is physically or mentally unable to care for themselves.
Amounts paid to a care provider — day care center, in-home babysitter, after-school program, or day camp — for a qualifying person's care while you work. Does not include overnight camp, tutoring, or payments to your spouse or your child under 19.
An employer-sponsored account allowing up to $5,000 in pre-tax dollars per household for qualifying dependent care. Amounts excluded through a DCFSA reduce the dollar cap on expenses eligible for the CDCC.
A credit that can reduce your federal income tax to zero but cannot generate a refund. If the credit exceeds your tax liability, the excess is lost — it cannot be carried forward.
You (and your spouse, if MFJ) must have earned income — wages, salaries, self-employment income — for the expenses to qualify. Full-time students and disabled spouses are deemed to earn $250–$500/month.
The IRS form attached to Form 1040 to claim the Child and Dependent Care Credit. Requires each provider's name, address, and TIN.
About

About this dependent care credit calculator

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Questions

Frequently asked questions about the free dependent care credit calculator

A dependent care credit calculator is a free online tool that helps you calculate the Child and Dependent Care Credit. 20-35% credit on qualifying child care expenses up to $3,000 (1 dep) / $6,000 (2+). It runs entirely in your browser with instant results and no sign-up.
No — these are simplified estimates based on 2024 brackets. Real tax filing requires considering all your deductions, credits, AMT, state taxes, and the latest IRS guidance. Use professional tax software or a CPA for filing.
Marginal rate is what you pay on your next dollar of income. Effective rate is total tax ÷ total income — typically much lower because of the progressive brackets and deductions.
Federal only. State tax varies by jurisdiction; some states have no income tax (TX, FL, WA, etc.), others up to 13%+ (CA, NY). Add state tax separately based on your state.

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