I've advocated before that childcare spending should be considered an adjustment to income rather than an expense. For many dual-income households it's really a cost of employment. @Augustus - you probably already know this, but assuming your wife does W-2 work and is eligible for dependent care benefits, get them! It's like paying the first $5,000 of childcare costs with pre-tax money. Second best is to claim the childcare credit on Form 2441, which is capped at $1,000 (or 20% of $5,000 - your marginal tax rate is likely higher).
@MI - There are legitimate reasons for working even if it barely covers childcare expenses. 1) Easier to find or get promoted into more lucrative work in the future, 2) Fear of not being able to find a job with a gap in resume, 3) Earn SS credits, 4) Some parents simply need the break from their kids.
(Edited to remove non-productive comment regarding proper use of "Jacob" as a unit of spending. See
viewtopic.php?p=155024#p155024 if interested. I give up. Trying to police this thing is like calling out mistakes in grammar or punctuation. It benefits no one, and the math was correct anyway in the frame of mind of the poster.)