DCAP Worksheet
Dependent Care Flexible Spending Account vs. IRS Child and Dependent Care Credit
Amounts contributed to your Dependent Care FSA (Flexible Spending Account) for eligible dependent care expenses cannot be used to claim the IRS Child and Dependent care Credit on your federal income tax return. Complete the worksheet below to determine which approach is better for your personal situation:
1. Your total family income |
$ |
2. Your approximate marginal income tax rate |
_______% |
3. Your IRS Dependent Care Tax Credit |
_______% |
4. Your estimated annual dependent care expenses Maximum is $5,000 |
$ |
5. IRS tax credit maximum is: $3,000 for one child/$6,000 for two or more children |
$ |
6. ESTIMATED ANNUAL SAVINGS with 125 Advantage (line 2 times line 4) with IRS Tax Credit (line 3 times line 5 |
$ $ |
APPROXIMATE MARGINAL INCOME TAX TABLE
IRS DEPENDENT CARE TAX CREDIT
SINGLE |
|
MARRIED |
|
Taxable Income |
Tax Credit |
Taxable Income |
Tax Rate* |
Taxable Income |
Tax Rate* |
$0-15,000 |
35% |
$0-38,050 |
24.7% |
$0-47,450 |
24.7% |
$15,001-17,000 |
34% |
$38,051-98,250 |
37.7% |
$47,451-114,650 |
37.7% |
$17,001-19,000 |
33% |
$98,251-159,100 |
32% |
$114,951-174,700 |
32% |
$19,001-21,000 |
32% |
$159,100-311,950 |
37.5% |
$174,701-311,950 |
37.5% |
$21,001-23,000 |
31% |
$311,950 and up |
40.6% |
$311,950 and up |
40.6% |
$23,001-25,000 |
30% |
|
|
|
|
$25,001-27,000 |
29% |
|
$27,001-29,000 |
28% |
|||
|
$29,001-31,000 |
27% |
|||
|
$31,001-33,000 |
26% |
|||
|
$33,000-35,000 |
25% |
|||
|
$37,000-39,000 |
23% |
|||
|
$39,000-41,000 |
22% |
|||
|
$41,000-43,000 |
21% |
|||
|
$43,000-No Limit |
20% |
|||
*Tax table includes marginal 2005 federal tax rate, 2% state tax and current FICA rate.