Childcare Tax Savings Calculator
Estimate how much you can save on childcare through Dependent Care FSA and the Child and Dependent Care Tax Credit.
Your Information
Your Tax Savings
Dependent Care FSA
$5,000 contribution$1,100
Child Care Tax Credit
20% of $3,000$600
Total Annual Savings
$1,700
11% of daycare costs
Effective Daycare Cost
$13,300/year
$1,108/month
This is an estimate. Consult a tax professional for advice specific to your situation.
Understanding Your Tax Benefits
Dependent Care FSA
A Dependent Care FSA lets you set aside up to $5,000 per year in pre-tax dollars for childcare expenses. This reduces your taxable income, saving you money on federal, state, and FICA taxes.
- Must be offered by your employer
- Funds must be used by year-end (or grace period)
- Both spouses must work (or one must be a student)
Child and Dependent Care Credit
This tax credit is worth 20-35% of qualifying expenses (based on income), up to $3,000 for one child or $6,000 for two or more children.
- Credit percentage decreases as income increases
- Can only claim expenses not covered by FSA
- Child must be under 13