DCAA 2020 Tax Savings Calculator

Use this form to calculate your potential tax savings by enrolling in a DCAA in 2020, as compared to the Federal dependent care tax credit. You will need your 2019 Federal and State Tax returns to use this form.

Note: All items are required to perform this tax savings comparison

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1.  Choose your place of residence:

New York City Yonkers Other New York State Place Of Residence

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2.  Enter the Number of Qualifying Dependents:

A Qualifying Dependent is a child under age 13, disabled spouse or other dependent, or elderly parent. A Qualifying Dependent must live with you at least 8 hours a day.

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3.  Enter Your Expected 2019 Qualifying Expenses:

For tax year 2020, the Federal tax credit can be used up to $3,000 for the care of one dependent and up to $6,000 for two or more dependents. The DCAA and the credit can be combined, but the total cannot exceed $3,000 for one dependent ($6,000 for two or more dependents). Or, you can use just the DCAA for up to $5,000, regardless of the number of dependents you claim.

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4.  Enter Your Expected 2019 Qualifying Expenses for Dependents Under Age 4:

For tax year 2019, enter the portion of your total expenses from (3) above that will be for dependents under the age of 4

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5.  Choose your bargaining unit:

CSEA (Payroll Codes 02, 03, 04, 47, 97) PEF (Payroll Code 05) Council 82 (Payroll Codes 61, 91) MC (Payroll Codes 06, 13, 18, 34, 46, 52, 66) Legislature (Payroll Codes 76, 77, 79) GSEU (Payroll Code 28) NYSCOPBA (Payroll Codes 01, 21) UUP (Payroll Code 08) DC 37 (Payroll Code 67) Lifeguards (Payroll Code 68)

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6.  Choose your tax filing status:

Single Head Of Household Married Filing Jointly

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7.  Enter your State Salary & Wages as of January 1, 2019:

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8.  Enter your Federal Adjusted Gross Income (FAGI) from your 2019 Federal Tax Return (From 2019 Form 1040, Line 37; 1040A, Line 21; 1040EZ, Line 4) 1 or Estimated 2019 FAGI:

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9.  Enter your New York Adjusted Gross Income (NYAGI) from your 2019 New York State Tax Return (From 2019 Form IT-201, Line 33) 1 or Estimated 2019 NYAGI:

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10.  Enter your Federal Taxable Income (FTI) from your 2019 Federal Tax Return (From 2019 Form 1040, Line 43; 1040A, Line 27; 1040EZ, Line 6) 1 or Estimated 2019 FTI:

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11.  Enter your New York Taxable Income (NYTI) from your 2019 New York State Tax Return (From 2019 Form IT-201, Line 37) 1 or Estimated 2019 NYTI:

• footnote1 If you participated in the HCSA program during the tax year from which this data is taken, be sure to increase this amount by any excluded amount. ↵

Links

Federal - Internal Revenue Service (www.irs.gov)

• Publication 503 Child and Dependent Care Expenses; and
• Form 2441 Child and Dependent Care Expenses (attached to Form 1040 or 1040A).

New York State - New York State Department of Taxation & Finance(www.tax.ny.gov )

• Form IT-216 Claim for Child and Dependent Care Credit; and
• Instructions for Form IT-216 Claim for Credit for Child and Dependent Care Credit.

Accuracy Statement

The information contained herein does not constitute tax advice. The estimates provided are based on income and expense data provided by the applicant and Tax Laws in effect as of July 1, 2019. For more accurate information on your specific situation, please consult your tax advisor.

A Note About Refundable Tax Benefits

The New York State Child and Dependent Care Credit is refundable. This means that taxpayers receive any credit amount in excess of New York State tax liability in the form of a cash rebate. However, the Federal Child and Dependent Care Credit is not refundable. As a result, taxpayers cannot benefit from any credit amount in excess of their Federal tax liability. Contributions to the NYS Dependent Care Advantage Account (DCAA) benefit taxpayers to the extent that they have taxable income to offset. In practical terms, most low and moderate income taxpayers receive a greater tax benefit by claiming the Federal and New York State child and dependent care tax credits.