Adjusted Gross Income Number of Families

Total Income and 

Payroll Tax Benefit

Average Income and 

Payroll Tax Benefit

($) (thousands) ($millions) ($)

0 <= 30,000 625 281 450

30,000 <= 40,000 697 450 646

40,000 <= 50,000 592 343 579

50,000 <= 60,000 502 290 577

60,000 <= 75,000 645 413 640

75,000 <= 100,000 1,053 758 720

100,000 <= 200,000 1,984 1,813 913

200,000 <= 300,000 453 513 1,132

300,000 <= 400,000 130 181 1,395

400,000 <= 500,000 66 87 1,324

500,000 and over 101 136 1,347

Total 6,852 5,266 769

Notes:

In this table, both the child and dependent care tax credit and the exclusion of dependent care benefits are 

repealed to calculate the number of families benefiting from these two provisions. The exclusion of dependent 

care benefits is also known as the dependent care flexible spending account or FSA. The benefit from the 

exclusion of dependent care benefits includes the tax cut from the exclusion for income tax and for employer 

and employee shares of payroll tax. With the repeal of the child and dependent care tax credit, families may 

apply other non-refundable tax credits to offset tax liability. Families with negative incomes are excluded from 

the lowest income class but included in the total line.

Table 1

Families Benefiting and Amount of Benefit from the Child and Dependent Care Tax Credit and the 

Tax Year 2016

Exclusion of Dependent Care Benefits

U.S. Department of the Treasury

Office of Tax Analysis

July 28, 2015
Adjusted Gross Income Number of Families

Total Income Tax 

Benefit

Average Income Tax 

Benefit 

($) (thousands) ($millions) ($)

0 <= 30,000 31 15 484

30,000 <= 40,000 37 23 617

40,000 <= 50,000 45 15 338

50,000 <= 60,000 48 25 529

60,000 <= 75,000 82 43 523

75,000 <= 100,000 187 111 592

100,000 <= 200,000 568 524 923

200,000 <= 300,000 209 196 938

300,000 <= 400,000 70 90 1,294

400,000 <= 500,000 36 39 1,085

500,000 and over 51 60 1,163

Total 1,366 1,142 836

Notes:

In this table, the amount of benefit is calculated by repealing the exclusion of dependent care benefits and 

applying the expenses toward the child and dependent care tax credit (up to the $3,000/one child, $6,000/two 

children limit). As a result, this table depicts the marginal benefit from the exclusion and will exclude famiiles 

whose benefit from the exclusion does not exceed their benefit from their counterfactual child and dependent 

care tax credit. The exclusion of dependent care benefits is also known as the dependent care flexible spending 

account or FSA. The benefit includes the tax cut from the exclusion for income tax and for employer and 

employee shares of payroll tax. Families with negative incomes are excluded from the lowest income class but 

included in the total line.

Table 2

Families Benefiting and Amount of Benefit from the Exclusion of Dependent Care Benefits

Tax Year 2016

U.S. Department of the Treasury

Office of Tax Analysis

July 28, 2015
Adjusted Gross Income Number of Families

Total Income Tax 

Benefit

Average Income Tax 

Benefit 

($) (thousands) ($millions) ($)

0 <= 30,000 598 260 435

30,000 <= 40,000 680 416 612

40,000 <= 50,000 567 314 554

50,000 <= 60,000 476 247 518

60,000 <= 75,000 600 335 558

75,000 <= 100,000 950 546 575

100,000 <= 200,000 1,717 983 572

200,000 <= 300,000 364 199 547

300,000 <= 400,000 96 49 517

400,000 <= 500,000 48 26 534

500,000 and over 77 45 589

Total 6,173 3,421 554

Notes: 

In this table, the child and dependent care tax credit is repealed to calculate the number of families benefiting 

from this provision. With the repeal of the tax credit, families may apply other non-refundable tax credits to 

offset tax liability. Families with negative incomes are excluded from the lowest income class but included in the 

total line.

Table 3

Families Benefiting and Amount of Benefit from the Child and Dependent Care Tax Credit

Tax Year 2016

U.S. Department of the Treasury

Office of Tax Analysis

July 28, 2015