DCAP or Dependent Care Credit?
Church employees can use a Dependent Care Assistance Plan (up to $7,500) or the Child and Dependent Care Credit (up to 50%), but not both on the same dollars. Enter your numbers to see which saves your household more in 2026.
- Updated for 20262026 brackets, the $7,500 DCAP limit and the new credit rates
- Interactive calculatorComing soon; our team can run your numbers now
- Questions?clientservices@clergyfinancial.com
Two ways to save on child care, but not on the same dollars
A Dependent Care Assistance Plan (DCAP) lets an employee set aside pay before tax for child or dependent care. The Child and Dependent Care Credit reduces federal income tax instead. Every dollar run through a DCAP reduces the expenses that can count toward the credit, so most households should pick the one that saves more. This calculator compares the two.
Compare your savings
The interactive calculator is almost ready
Soon you’ll be able to enter your household income, child care costs and filing status to compare your 2026 savings with a Dependent Care Assistance Plan (up to $7,500) against the Child and Dependent Care Credit (up to 50%). In the meantime, our team is glad to run the numbers with you.
Before you decide
- Both benefits are capped at the lower-earning spouse’s earned income.
- A full DCAP election usually leaves no expenses for the credit.
- The credit is not refundable; it can’t exceed your federal income tax.
- Ministers pay self-employment tax instead of FICA, so DCAP savings are income tax only.
- Elect a DCAP during your church’s open enrollment.
- Keep receipts and each provider’s taxpayer ID. Form 2441 is required with either choice.
Related resources
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