2026 Dependent Tax Credit Comparison Calculator
The IRS offers three different dependent credits in 2026: the Child Tax Credit (CTC, $2,000 per child under 17), Credit for Other Dependents (ODC, $500 per qualifying relative), and Child & Dependent Care Credit (CDCTC, up to $3,000 per child). Calculate your total benefit.
| Children Under 17 | — |
| Other Dependents | — |
| Annual Child Care Cost | — |
| Children Eligible for Care Credit | — |
| AGI | — |
| CTC Base ($2K × children) | — |
| CTC Phase-Out | — |
| CTC Final | — |
| ODC Base ($500 × others) | — |
| ODC Final | — |
| Care Expense Cap | — |
| CDCTC Rate | — |
| CDCTC Total | — |
| Total Dependent Credits | — |
Three Credits, Different Rules
Child Tax Credit (CTC): $2,000 per child under 17. Refundable up to $1,700 per child in 2026 (Additional Child Tax Credit). Phase-out begins at $200K single / $400K MFJ — reduces $50 per $1,000 of AGI over the threshold.
Credit for Other Dependents (ODC): $500 per qualifying relative (older child, parent, etc.). Non-refundable. Same phase-out structure as CTC. Useful for adult dependents (elderly parents, disabled adult children) who don't qualify as 'qualifying child' under CTC.
Source: irs.gov IRC §24 (CTC), §24(h) (ODC), §21 (CDCTC) + OBBB P.L. 119-21
Child & Dependent Care Credit
CDCTC covers a percentage (20-35%) of qualified care expenses for children under 13 (or any age if disabled). Maximum expenses: $3,000 for one child, $6,000 for 2+. Rate is 35% at AGI ≤$15K, dropping to 20% at AGI ≥$43K.
Both spouses must work (or be students/disabled/looking for work). The maximum credit at 20% on $6,000 = $1,200/year. Non-refundable. Useful but limited.
Dependent Care FSA — Often Better Than CDCTC
Dependent Care FSA (employer-provided) lets you set aside up to $5,000 pre-tax for child care. At 24% marginal rate, the savings is $1,200 — same as CDCTC at 20% on $6,000.
Higher income earners (32%+ marginal) save more with FSA. Lower income earners (10-12% marginal) save more with CDCTC. You can use both, but $5K FSA contribution reduces CDCTC qualifying expenses dollar-for-dollar.
Refundability and ACT
Refundable means you get the credit even if you owe no tax (a refund check). Non-refundable just reduces tax owed to zero. CTC is partially refundable up to $1,700 per child (the Additional Child Tax Credit or ACTC). ODC and CDCTC are non-refundable.
For lower-income families with little tax owed, refundable credits matter most. CTC's refundability disappears for high earners (they have plenty of tax to offset).
Dependent Credit 2026 Comparison Calculator — Post-OBBB Rule Changes
The One Big Beautiful Bill (P.L. 119-21, signed July 2025) made three permanent changes this calculator applies to your 2026 return. (1) CTC stays at $2,000/child (previously scheduled to drop to $1,000 after 2025). (2) Refundable ACTC portion permanently indexed to inflation starting at $1,700/child in 2026, rising with CPI. (3) Both parents must now have a Social Security Number issued before the return's due date to claim CTC — ITINs no longer qualify for the CTC (ODC still allows ITIN dependents). Per IRS Topic Child Tax Credit, the phase-out threshold ($200K single / $400K MFJ) is NOT indexed to inflation, so the credit's real value quietly erodes each year at high incomes. Run the calculator with your 2026 AGI to see whether the phase-out has already started clawing back part of the credit.
Last updated 2026-07-01. Sources: IRS Child Tax Credit, IRS Pub 503 (Care Credit), IRC §24, §21, OBBB P.L. 119-21.