Dependent Credit Phase-Out Calculator

About this calculator

Many dependent-related tax credits are not flat — above a certain income threshold, the credit is reduced by a fixed amount for every increment of income over that threshold, a mechanism often called a phase-out. The remaining credit is calculated as: full credit − (reduction step × number of increments by which income exceeds the threshold), floored at zero once the credit is fully phased out.

This calculator takes the full credit amount, your income, the phase-out threshold, and the reduction step, and returns how much credit actually remains. Tax preparers and individual filers use it to estimate their real credit before filing rather than assuming the full statutory amount, and payroll and HR professionals use the same phase-out logic when helping employees understand how a raise or bonus might unexpectedly shrink a dependent-related credit they were counting on.