How do I report my Nebraska Form 7203 for the Child Care Tax Credit?

Parents or legal guardians of children age 5 or younger may qualify for the Nebraska Child Care Refundable Tax Credit. Before claiming the credit on a Nebraska income tax return, you must submit Form 7203 to the Nebraska Department of Revenue (DOR) and receive an approved credit reservation.

Requirements

To qualify for the credit:

• You must be a Nebraska resident.
• Your total household income must be $150,000 or less.
• The child must be age 5 or younger on December 31 of the tax year.
• The child must be claimed as your dependent for federal income tax purposes.

Eligibility

A parent or legal guardian may qualify for the refundable tax credit if:

• The child is enrolled in a child care program licensed under the Nebraska Child Care Licensing Act; or
• The child receives care from an approved license-exempt provider enrolled in Nebraska's child care subsidy program; or
• The parent's or legal guardian's total household income is at or below 100% of the federal poverty level.

How much is the credit?

• $2,000 per qualifying child if total household income is $75,000 or less.
• $1,000 per qualifying child if total household income is more than $75,000 but not more than $150,000.
• Taxpayers with total household income over $150,000 do not qualify for the credit.

Claiming the Credit

Before claiming this credit on your Nebraska income tax return, you must:

1. Submit Form 7203, Child Care Refundable Tax Credit Application, to the Nebraska Department of Revenue through the eDASH portal.
2. Receive approval from the Nebraska Department of Revenue.
3. Use the Certification Number and Reserved Credit Amount shown on the approved Form 7203 when preparing your Nebraska return.

The credit claimed on your return cannot exceed the reserved credit amount approved by the Nebraska Department of Revenue. The information reported on your tax return must match the information submitted with Form 7203.

Program Entry

• Select State
• Edit Nebraska Return (Click the 3 dots)
• Credits
• Child Care Tax Credit for Parent or Legal Guardian

Enter the Certification Number from your approved Form 7203 and the reserved credit amount, as applicable.

Important reminders

• All qualifying children should be included on a single Form 7203 application whenever possible.
• The parent or legal guardian submitting Form 7203 must be the taxpayer claiming the child as a dependent on the tax return.
• If the information on your tax return does not match the approved Form 7203, processing of your return or credit may be delayed.
• Form 7203 must be approved by the Nebraska Department of Revenue before the credit can be claimed on a Nebraska return.

Additional Information

You can review the Nebraska Department of Revenue (DOR) website for further information about the Child Care Tax Credit here.