How the Child and Dependent Care Tax Credit Works in 2026

In this episode of The Tax Strategy Podcast, Lucas and Luna break down the Child and Dependent Care Tax Credit for 2026 — a credit that helps working parents and caregivers offset the cost of daycare, after-school programs, and even summer camps. They walk through the specific dollar limits, income phaseouts, and eligibility rules using a concrete example: a married couple in Chicago with two kids and $18,000 in daycare expenses. They explain how the credit has changed since the pandemic-era expansions expired, and why many families leave money on the table because they don't understand the difference between a credit and a deduction. Lucas also shares a strategy for coordinating the credit with a Dependent Care Flexible Spending Account. If your childcare costs feel overwhelming, this episode shows exactly how to claim every dollar you're entitled to. #ChildAndDependentCareCredit #TaxCredit #ChildcareCosts #WorkingParents #DaycareDeduction #DependentCareFSA #TaxStrategy #TaxPlanning #FamilyTaxTips #SummerCampTaxCredit #Finance #FexingoBusiness #BusinessPodcast #TaxSeason #IRS #TaxSavings #CaregiverTaxRelief #MiddleClassTaxBreaks Keep every episode free: buymeacoffee.com/fexingo