TAX SAVINGS FOR CHILDCARE
These charts compare two types of child-care tax benefits for families. One benefit is the Dependent Care Credit applied to a personal tax-return. The second benefit is the annual tax savings when an employee elects the Dependent Care Assistance Program (DCAP) offered by your employer.
First, find your total household annual income.
Then find the column that matches the number of children in your household.
If the dollar amount below is in parentheses, you would save more money using the Child Tax Credit. If the dollar amount is not in parentheses, your savings through the DCAP is greater than using the Child Tax Credit.
PARTICIPATING IN DCAP: Filing Jointly
|
Gross wages of Employee |
1 dependent |
2 dependent |
Gross wages of Employee |
1 dependent |
2 dependent |
|
|
and spouse |
child under 13 |
children under 13 |
and spouse |
child under 13 |
children under 13 |
|
|
$10,000 |
($580) |
($1,617) |
$50,000 |
$ 533 |
$ 133 |
|
|
$15,000 |
($218) |
($618) |
$70,000 |
$ 533 |
$ 133 |
|
|
$18,000 |
($57) |
($24) |
$80,000 |
$ 633 |
$ 133 |
|
|
$20,000 |
$ 563 |
$ 397 |
$90,000 |
$1,033 |
$ 633 |
|
|
$22,000 |
$1,082 |
$ 686 |
$110,000 |
$1,033 |
$ 633 |
|
|
$25,000 |
$1,142 |
$ 786 |
$130,000 |
$1,283 |
$ 883 |
|
|
$30,000 |
$ 872 |
$1,216 |
$150,000 |
$1,183 |
$1,033 |
|
|
$35,000 |
$ 657 |
$ 716 |
$170,000 |
$1,183 |
$ 783 |
|
|
$40,000 |
$ 473 |
$ 389 |
$190,000 |
$ 873 |
$ 473 |
|
|
$43,000 |
$ 503 |
$ 83 |
$210,000 |
$1,123 |
$ 693 |
PARTICIPATING IN DCAP: Filing as Head of Household
|
Gross wages of Employee |
1 dependent |
2 dependent |
Gross wages of Employee |
1 dependent |
2 dependent |
|
|
and spouse |
child under 13 |
Children under 13 |
and spouse |
child under 13 |
children under 13 |
|
|
$10,000 |
($580) |
($1,617) |
$50,000 |
$ 533 |
$133 |
|
|
$15,000 |
($117) |
($485) |
$70,000 |
$1,033 |
$633 |
|
|
$18,000 |
$ 263 |
$ 497 |
$80,000 |
$1,283 |
$883 |
|
|
$20,000 |
$ 781 |
$ 686 |
$90,000 |
$1,283 |
$883 |
|
|
$22,000 |
$ 852 |
$ 686 |
$110,000 |
$ 723 |
$573 |
|
|
$25,000 |
$ 824 |
$ 786 |
$130,000 |
$ 873 |
$473 |
|
|
$30,000 |
$1,122 |
$ 718 |
$150,000 |
$ 873 |
$473 |
|
|
$35,000 |
$ 547 |
$ 935 |
$170,000 |
$ 873 |
$473 |
|
|
$40,000 |
$ 473 |
$ 88 |
$190,000 |
$1,207 |
$849 |
|
|
$43,000 |
$ 503 |
$ 83 |
$210,000 |
$1,207 |
$849 |
|
The Cafeteria Plan Company, a division of Retirement Strategies, LLC
500 4th Street NW, Suite 301, Albuquerque, NM 87102
505-822-9300