An independent childcare-benefit calculator for working parents.

Who runs this

fsacredit.com is published by Red Goggles LLC, an independent operator of free web calculators and reference tools. We are not a tax-preparation service, a benefits administrator, an employer, or a government agency, and we are not affiliated with the IRS or the U.S. Treasury. We don't sell anything, we don't collect leads, and we don't take your information — the calculator runs on your device and nothing you type is sent to us.

Why this site exists

Most working parents have heard of both a Dependent Care FSA (DCFSA) and the Child & Dependent Care Credit (CDCC), but very few realize the two partially offset each other: every $1 you route through a DCFSA reduces the expense base you can claim for the CDCC by $1. You don't get both benefits on the same dollar. Naively "maxing both" is double-counting in reverse, and it can leave real money on the table. Which benefit wins the first dollars depends on your marginal federal tax rate, your filing status, and how many kids you have in care. This tool works out the optimal allocation for your specific situation and shows the dollar gap against the naive strategies.

How it's calculated

The estimate is built from published federal figures, applied in the open:

• DCFSA contribution limits — up to $5,000 per household ($2,500 if married filing separately). The FSA is pre-tax, so it saves federal income tax and Social Security and Medicare (FICA) — which the credit does not.
• Child & Dependent Care Credit (IRC §21, IRS Form 2441 / Publication 503) — a non-refundable credit on up to $3,000 of expenses for one qualifying person or $6,000 for two or more, at a sliding rate (20%–35%) that falls as income rises. Every DCFSA dollar reduces this eligible expense base.
• The offset rule — the tool applies the dollar-for-dollar reduction of the CDCC base by the DCFSA election, then compares FSA-only, credit-only, naive-max-both, and the optimal split.
• Child Tax Credit — shown alongside for completeness at $2,000 per qualifying child under 17, with the phase-out noted above $200,000 (single/HoH) / $400,000 (MFJ). The CTC is separate from the dependent-care math.

The full method is spelled out on the calculator page under How it works and in the FAQ.

How we stay accurate and current

We model current enacted federal law and cite primary sources — IRS Publication 503, the Form 2441 instructions, and IRS inflation announcements. The dollar limits are inflation-adjusted and the credit percentages are set by statute; we review and update the figures each January when the IRS publishes the new year's numbers, and every page carries a "reflects current law as of…" note. If a figure looks wrong, tell us on the contact page and we'll verify it against the source.

How the site is funded

fsacredit.com is free and supported by display advertising. Advertising is kept calm and never mixes with your inputs — see our privacy page for exactly what is and isn't collected.

Questions or corrections? Reach us on the contact page.