Child and dependent care credit estimate

2026 child care credit calculation

The estimate uses $1,000 of qualified expenses at 35%, producing a gross credit of $350 and an estimated usable credit of $350 after the nonrefundable tax limit.

The 2026 IRS withholding publication says the qualifying expense amount remains $3,000 for one qualifying child and $6,000 for two or more, while the maximum credit rate rises to 50%. This tool applies the new two-step rate phase-down and keeps the Form 2441-style earned income and dependent care benefit limits visible.

This is a planning estimate. It does not verify every rule, such as qualifying-person residency, provider relationship limits, full-time student or disabled spouse deemed income rules, or separated-spouse documentation.

Sources: IRS Publication 505 for 2026 and IRS child and dependent care credit information.