HELP FOR FAMILIES WITH YOUNG CHILDREN
Raising young kids can be hard on a family’s finances, especially given the high cost of child care. Nebraska’s refundable Child Care Tax Credit for Working Parents can ease the strain on families and make providing for their little ones just a little bit easier.
Who is this tax credit for?
The refundable Child Care Tax Credit is for parents or legal guardians of one or more children age 5 or younger. Your family must meet certain household income guidelines to be eligible for the credit.
What’s a refundable tax credit?
Refundable tax credits are subtracted from the amount you owe in state income tax. If the amount of your credit is larger than your tax liability, the difference is refunded to you.
How do I know if I’m eligible for the refundable Child Care Tax Credit?
You may be eligible for the refundable Child Care Tax Credit if your child or children are age 5 or younger and your annual household income does not exceed $150,000. At least one of the following must apply:
- Your child is enrolled in a licensed child care program, OR
- Your child receives care from a license-exempt child care provider who participates in the child care subsidy, OR
- Your total annual household income is less than or equal to 100% of the Federal Poverty Level (FPL). For more information, click here.
How much is the refundable tax credit?
If you qualify, the amount of the credit is determined by your annual household income and the number of children age 5 or younger.
| Total Annual Household Income | Tax Credit (per child age 5 or under) |
| $75,000 or less per year | $2,000 per child |
| Between $75,000 and $150,000 | $1,000 per child |
What are some examples of how the refundable tax credit works?
Example 1: A single-child family with an annual household income of $110,000 has a 1-year-old enrolled in a licensed child care program. The family could qualify for a $1,000 refundable tax credit.
Example 2: A two-child family with an annual household income of $72,000 has a 1-year-old and a 3-year-old enrolled in a licensed child care program. The family could qualify for a $4,000 refundable tax credit ($2,000 per child).
Example 3: A single-child family of three has an annual household income of $24,000 and a 1-year-old who is cared for at home. This family could qualify for a $2,000 refundable tax credit even though their child is not enrolled in a licensed program because their household income is below the Federal Poverty Level for a 3-person household ($25,820).
When should I apply?
Applications for the refundable Child Care Tax Credit must be submitted as soon as possible after January 1, 2025. You must receive your tax credit approval from Nebraska Department of Revenue before filing your state income tax return to claim the refundable credit.
PLEASE NOTE: Applications for the refundable Child Care Tax Credit will not be available on the Nebraska Department of Revenue website until the end of 2024.
How to Apply
- DOWNLOAD AND COMPLETE THE APPLICATION: Application materials for the refundable Child Care Tax Credit will be available on the Nebraska Department of Revenue (NDOR) website at the end of 2024.
- SUBMIT THE APPLICATION: As soon as possible after January 1, 2025, submit your completed Child Care Tax Credit application by uploading it to the NDOR website. Include any other necessary information required by NDOR.
- CLAIM THE TAX CREDIT: Allow up to 90 days for NDOR to respond to your application by email. If your application is approved, you will receive a document to include with your 2024 Nebraska tax return.
Note: These application instructions will be updated as new information is published by NDOR.
Help Get the Word Out
Want to make sure your community is benefitting from
Nebraska’ Child Care Tax Credits? Find out how you or your organization can become a campaign messaging partner.
Campaign Partners
English 
Spanish