Parents or legal guardians of children 5 years old or younger may apply to receive a refundable tax credit.
Requirements
- Total household income is $150,000 or less
- Child must be age 5 years or younger as of December 31 of the calendar year
- Child must be claimed by the parent or legal guardian as a dependent for federal income tax purposes.
Eligibility
The parent or legal guardian is eligible for the refundable tax credit:
- If the child is enrolled in a child care program licensed pursuant to the Child Care Licensing Act; or
- If the child receives care from an approved license-exempt provider enrolled in the child care subsidy program pursuant to Neb. Rev. Stat. §§ 68-1202 and 68-1206; or
- If the parent’s or legal guardian’s total household income is less than or equal to 100% of the federal poverty level.
How much is the credit?
- $2,000 per child, if the total household income is no more than $75,000; or
- $1,000 per child, if the total household income is more than $75,000 but no more than $150,000.
Claiming the credit
Before claiming the tax credit on the return, the parent/guardian must submit the Child Care Refundable Tax Credit Application, Form 7203 to Department Of Revenue for Nebraska. After the Form 7203 is reviewed, DOR will provide the taxpayer with the assigned certificate number to claim the tax credit. T
Program Entry
The Nebraska Child Care Tax Credit form 7203 can be entered into the Nebraska return by following this path: state section > Credits > Child Care Tax Credit for Parent or Legal Guardian.
To claim the tax credit, the certificate number must be entered.
Additional Information:
The information on the tax return must match the information submitted on the Form 7203. The tax credit amount claimed cannot exceed the amount reserved from the submitted Form 7203.