Dependent Care Tax Credit Calculator

The CDCTC allows a credit of 20% to 35% of qualifying childcare expenses, up to $3,000 for one qualifying dependent or $6,000 for two or more. The maximum credit is $1,050 for one child or $2,100 for two or more (at the 35% rate for incomes up to $15,000). For most working families earning over $43,000, the rate is 20%, producing a maximum credit of $600 (one child) or $1,200 (two or more).

Qualifying expenses include daycare, preschool, before and after school care, summer day camp, and care for a disabled dependent of any age. The care must allow you (and your spouse, if married) to work or look for work. Overnight camps, tutoring, and food or clothing costs do not qualify.

For 2026, the CDCTC has reverted to its pre-2021 non-refundable status. This means the credit can reduce your tax bill to zero but will not generate a refund on its own. The temporary expansion under the American Rescue Plan (2021 only) made it refundable, but that provision expired.

You can use both, but expenses paid through a Dependent Care FSA cannot also be claimed for the CDCTC. If you contribute $5,000 to a DCFSA, your remaining CDCTC-eligible expenses are reduced from $6,000 to $1,000 (for two or more dependents). For most families, the DCFSA provides a larger tax benefit because it also reduces FICA taxes.

There is no income limit that disqualifies you from the CDCTC entirely. However, the credit rate decreases as AGI rises: 35% for AGI up to $15,000, declining by 1% for each $2,000 of AGI above $15,000, reaching a floor of 20% at $43,000 and above. Most working parents receive the 20% rate.