Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Total benefit using FSA + remaining credit
$2,933
Benefit using only the tax credit
$1,200
FSA tax savings alone
$1,733
Credit on remaining expenses
$1,200
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How to use this
- 1Enter dependent care fsa contribution ($).
- 2Enter marginal federal + state tax rate (%).
- 3Enter children needing care.
- 4Enter dependent care credit rate (income-based) (%).
- 5Enter total annual care expenses ($).
- 6Read your total benefit using fsa + remaining credit on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
A Dependent Care FSA lets you set aside up to $5,000 per household per year ($2,500 if married filing separately) pre-tax through payroll, sheltering it from federal income tax, Social Security, and Medicare. That's usually worth more than the alternative Child and Dependent Care Credit, which tops out around 20-35% of up to $3,000/$6,000 in expenses for one or two-plus kids depending on income — but you can't double-dip on the same dollars, and once your income puts you in the lower FICA-savings bracket the comparison can flip. This calculator estimates your FSA tax savings and shows the credit you'd forgo by using it, so you can see which one actually nets you more.
Worked example
Using the values the calculator loads with:
Inputs
- Dependent Care FSA contribution: 5000 $
- Marginal federal + state tax rate: 27 %
- Children needing care: 2
- Dependent care credit rate (income-based): 20 %
- Total annual care expenses: 12000 $
Results
- Total benefit using FSA + remaining credit: $2,933
- Benefit using only the tax credit: $1,200
- FSA tax savings alone: $1,733
- Credit on remaining expenses: $1,200
What each field means
Inputs
- Dependent Care FSA contribution ($)
- The dependent care fsa contribution used in the calculation, measured in $. Starts at 5000 $ so you have a working example on load. Accepted range: 0–5000 $.
- Marginal federal + state tax rate (%)
- The marginal federal + state tax rate used in the calculation, measured in %. Starts at 27 % so you have a working example on load. Accepted range: 0–50 %.
- Children needing care
- The children needing care used in the calculation. Starts at 2 so you have a working example on load. Accepted range: 1–5.
- Dependent care credit rate (income-based) (%)
- The dependent care credit rate (income-based) used in the calculation, measured in %. Starts at 20 % so you have a working example on load. Accepted range: 20–35 %.
- Total annual care expenses ($)
- The total annual care expenses used in the calculation, measured in $. Starts at 12000 $ so you have a working example on load.
Results
- Total benefit using FSA + remaining credit
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Benefit using only the tax credit
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- FSA tax savings alone
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Credit on remaining expenses
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Can I use both the FSA and the tax credit?
Partially. You can claim the Child and Dependent Care Credit on expenses beyond what you ran through the FSA, up to the $3,000/$6,000 cap minus your FSA contribution. Most households max the FSA first since it usually saves more per dollar, then apply any remaining eligible expenses to the credit.
What expenses qualify for a Dependent Care FSA?
Daycare, preschool, before/after-school care, and day camp (not overnight camp) for kids under 13, plus care for a disabled spouse or dependent of any age, as long as the care allows you and your spouse to work or look for work. Save itemized receipts — FSA administrators require substantiation.
What happens if I don't use all my FSA funds?
Unlike healthcare FSAs, dependent care FSAs generally don't allow a grace period or carryover under IRS default rules, though some employers add a short grace period. Unused funds are forfeited, so estimate your actual annual childcare spend conservatively before electing the full $5,000.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Dependent Care FSA Savings Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/dependent-care-fsa-savings
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/dependent-care-fsa-savings" target="_blank" rel="noopener">Dependent Care FSA Savings Calculator — RevenueLab</a> (2026).</p>
Source: [Dependent Care FSA Savings Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/dependent-care-fsa-savings) (2026).