Documentation

How Kelivon Models Childcare Costs

Understand the methodology behind our childcare cost estimation, tax optimization, and Monte Carlo simulation.

API Endpoints

POST
/v1/calculate

Calculate total cost for a single childcare arrangement

POST
/v1/compare

Compare costs across multiple childcare types

GET
/v1/rates/:zip

Get local childcare market rates by ZIP code

POST
/v1/optimize

Find optimal tax strategy for childcare expenses

POST
/v1/simulate

Run Monte Carlo simulation with custom parameters

Tax Optimization Methodology

Kelivon models the interaction between the Child and Dependent Care Tax Credit (IRS Form 2441) and the Dependent Care Flexible Spending Account (DCAP). These two benefits cannot both apply to the same expenses, creating an optimization problem: for some families the credit is worth more, for others the FSA saves more. Our optimizer evaluates all valid combinations and finds the split that minimizes total after-tax childcare cost.

We also model state-specific childcare tax credits (available in 26 states), employer childcare subsidies, and the impact of filing status on credit percentages. The result is a precise after-tax cost for each childcare arrangement -- not just the sticker price.

Data Sources

Census ACS

American Community Survey -- childcare expenditure by household type, income, and geography.

BLS OES

Bureau of Labor Statistics -- nanny and childcare worker wages by metro area.

IRS Pub 503

Child and Dependent Care Credit rules, DCAP limits, and qualifying expense definitions.

State Licensing DBs

State childcare licensing databases for daycare center capacity and tuition data.