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Nebraska announces Child Care Tax Credit for eligible parents starting in with 2024 returns
LINCOLN, Neb. - Nebraska parents and legal guardians of children 5 years old or younger may soon be eligible for a new refundable child care tax credit under the Child Care Tax Credit Act, which takes effect for tax years beginning January 1, 2024.
The state Department of Revenue (DOR) has outlined the steps for parents to apply for the tax credit, which will be available through an online application system called the Electronic Document & Application Submission Hub (eDASH). The application portal will open on January 2, 2025, allowing parents to apply for the credit for tax year 2024.
To qualify for the credit, parents or guardians must meet certain criteria. The child must be 5 years old or younger as of December 31 of the year for which the credit is requested and must be claimed as a dependent on the parent’s federal income tax return. Additionally, the household income must not exceed $150,000.
Eligible parents will receive a refundable tax credit of $2,000 per child if their household income is $75,000 or less. Those with household incomes between $75,000 and $150,000 will receive $1,000 per child. However, if the household income exceeds $150,000, the tax credit is not available.
The credit is designed to help families with children enrolled in licensed child care programs or those using approved license-exempt providers in the child care subsidy program. Parents who qualify for the credit will submit their application through eDASH, which will securely process the claims. The total amount available for this refundable tax credit is limited to $15 million annually, and applications will be processed on a first-come, first-served basis.
For more information on eligibility and to submit an application starting January 2025, parents are encouraged to visit the DOR website, where they can find details on required documentation and the application process.