How the Blended Tax Credit Works for Child Care Costs

In this episode of The Tax Strategy Podcast, Lucas and Luna explore the recently expanded blended tax credit for child care costs under the 2026 tax code. They break down how the credit now combines elements of the old Child and Dependent Care Credit with a new refundable portion tied to inflation-adjusted income thresholds. Using a concrete example of a family earning $75,000 with two children, they calculate the maximum credit of $4,800 and show how the phaseout works above $125,000. Lucas explains the strategic advantage of timing dependent care flexible spending account contributions alongside the credit. The episode also touches on why this change happened — bipartisan urgency around child care affordability. No fluff, just numbers and planning moves. #ChildCareTaxCredit #TaxCredit2026 #DependentCare #RefundableCredit #InflationAdjustment #ChildCareCosts #FamilyTaxPlanning #FlexibleSpendingAccount #DCFSA #TaxStrategy #FexingoBusiness #BusinessPodcast #Finance #TaxPlanning #IRS #TaxSeason #MiddleClassTaxRelief #BipartisanTax Keep every episode free: buymeacoffee.com/fexingo