💰 Nebraska Child Care Refundable Tax Credit
Child care can be one of the biggest expenses for families — especially working parents trying to balance their budgets. In response to rising costs and the need for better support, Nebraska has introduced a Child Care Refundable Tax Credit that can significantly reduce your financial burden.
Whether you're a parent, a child care provider, or simply planning ahead, this guide will walk you through everything you need to know about Nebraska’s new refundable tax credit — including how to qualify, how much you can get, and how to claim it.
🧾 What Is the Nebraska Child Care Refundable Tax Credit?
The Nebraska Child Care Refundable Tax Credit is a new tax benefit that launched in 2024 and continues into 2025. It's designed to support:
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Working parents who pay for child care services
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Licensed child care providers offering services to low-income families
What makes it unique is that it's refundable, meaning even if you owe zero taxes, you could still receive money back.
✅ Who Is Eligible?
There are two main groups who qualify for the Nebraska child care refundable tax credit:
1. Parents or Guardians
To qualify, you must:
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Be a Nebraska resident
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Have a child 12 years or younger
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Pay for licensed child care services
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Have a household income under a certain threshold (varies yearly)
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File a Nebraska state income tax return
2. Child Care Providers
Eligible providers must:
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Be licensed with the Nebraska Department of Health and Human Services (DHHS)
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Accept subsidized child care payments (Title XX)
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Maintain participation in the Step Up to Quality program
💸 How Much Can You Receive?
The refund amount varies depending on your situation. Here’s a quick breakdown:
| Category | Credit Amount (Estimated) |
|---|---|
| Parents earning <$75,000 | Up to $1,000 per child |
| Providers in Tier 3 or higher | $500 to $2,000 per facility |
The exact amount depends on:
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Your total income
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Number of eligible children
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Whether you’re filing as single, married, or head of household
📅 How to Apply for the Tax Credit
Claiming the Nebraska child care refundable tax credit is easy and can be done while filing your Nebraska State Income Tax Return.
Step-by-step for Parents:
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Collect receipts from your licensed child care provider.
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Verify their DHHS license number.
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When filing your Form 1040N (Nebraska Tax Return), fill in the Child Care Credit section.
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Submit electronically or via mail before the tax deadline.
For Providers:
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Register or update participation in Step Up to Quality.
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Maintain accurate records of subsidized care.
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Claim the business tax credit using the proper Nebraska tax form (usually Form 3800N).
🛠️ Why This Tax Credit Matters for Nebraska Families
Child care costs in Nebraska have soared in recent years. According to reports, the average cost of full-time child care is over $10,000 per year per child. This tax credit helps:
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Reduce financial pressure on working families
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Encourage more people to enter or stay in the workforce
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Improve access to high-quality care
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Support child care providers with resources to grow
📍 Tips for Maximizing Your Tax Credit
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Use licensed providers only — unlicensed babysitting doesn’t count.
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Keep detailed receipts and payment records.
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Combine this with the federal child care tax credit for extra savings.
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Talk to a tax professional if your income fluctuates or you’re unsure about eligibility.
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❓ Frequently Asked Questions (FAQs)
1. Is the Nebraska child care tax credit the same as the federal child tax credit?
No, they are separate. The Nebraska credit applies only to Nebraska state taxes, while the federal credit applies to your federal tax return.
2. What if I don’t owe any Nebraska state tax?
You can still get money back! That’s what makes this a refundable credit — it's paid out even if your tax due is zero.
3. Does babysitting or family care count for the credit?
Only licensed child care providers qualify. Informal babysitting or care from unlicensed relatives does not qualify.
4. Can I get this credit and still qualify for SNAP or Medicaid?
Yes, receiving this credit does not affect eligibility for other public benefits.
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