Updated Aug. 19, 2026.
Nebraska families with qualifying children can receive a refundable state tax credit of $1,000 or $2,000 per child. Applications for tax year 2026 will open in January 2027, but the exact opening date has not been announced.
By Hola Nebraska
LINCOLN, NE — Nebraska parents and legal guardians may qualify for a refundable state tax credit worth up to $2,000 per qualifying child for tax year 2026.
The Nebraska Child Care Refundable Tax Credit is available to qualifying Nebraska residents with children age 5 or younger and total household income of no more than $150,000.
Applications for the 2026 tax year will open in January 2027. Nebraska Department of Revenue has not yet announced the exact day when families can begin submitting Form 7203 through its eDASH system.
The application is separate from the Nebraska individual income tax return. A parent or legal guardian first needs approval from the Department of Revenue and a reserved credit amount before claiming the credit on the state return.
Households earning up to $75,000 can qualify for $2,000 per child
The amount of the credit depends on total household income.
- $2,000 per qualifying child: Household income of $75,000 or less.
- $1,000 per qualifying child: Household income above $75,000 but no more than $150,000.
- No credit: Household income above $150,000.
For this program, Nebraska uses federal modified adjusted gross income to determine total household income.
The credit applies per qualifying child rather than per household. A family with two eligible children, for example, could potentially reserve $4,000 if its household income is $75,000 or less and all other requirements are met.
The final amount remains subject to approval by the Department of Revenue and the information reported on the family’s Nebraska income tax return.
Qualifying children must be age 5 or younger at the end of 2026
The age requirement is based on the child’s age on Dec. 31 of the tax year.
For the 2026 credit, a qualifying child must be age 5 or younger on Dec. 31, 2026. In other words, the child must still be under age 6 at the end of the year.
The parent or legal guardian also needs to claim that child as a dependent for federal income tax purposes.
Foster parents can qualify when they claim the foster child as a dependent and meet the other requirements.
Parents and legal guardians can use a Social Security number or Individual Taxpayer Identification Number when applying. A qualifying child can have an SSN, ITIN or Adoption Taxpayer Identification Number.
Most families need qualifying child care during the tax year
For households with income above 100% of the federal poverty level, the child generally needs to have received care through a qualifying child care program or provider during the tax year.
Those options include:
- A child care program licensed under Nebraska’s Child Care Licensing Act.
- An approved license-exempt provider enrolled in Nebraska’s Child Care Subsidy Program.
- A qualifying program operated or contracted by a public school district.
Families with total household income at or below 100% of the federal poverty level can qualify without meeting that child care provider requirement, as long as they satisfy the other conditions of the credit.
The Department of Revenue verifies provider information against records maintained by Nebraska DHHS and the Nebraska Department of Education.
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Form 7203 must be approved before the credit goes on the tax return
Nebraska does not allow families to request the Child Care Refundable Tax Credit for the first time while filing their individual income tax return.
Instead, qualifying parents and legal guardians use Form 7203, the Child Care Refundable Tax Credit Application.
The form is submitted electronically through the Nebraska Department of Revenue’s Electronic Document & Application Submission Hub, known as eDASH.
After reviewing an application, the department can approve and reserve a credit amount. The family then receives a certification number and the reserved amount needed to claim the credit on its Nebraska individual income tax return.
The Department of Revenue says applicants should allow at least 10 business days for a response after submitting a complete application.
2026 Form 7203 applications will open in January 2027
Nebraska opens Child Care Refundable Tax Credit applications in January following the tax year for which the credit is requested.
For the 2026 tax credit, that means Form 7203 applications will open in January 2027.
The Department of Revenue has not announced the exact January opening day.
Completed applications are processed in the order received until the state’s annual $15 million limit is reached. Applications completed on the same calendar day receive equal consideration toward the annual limit regardless of the time they were submitted.
The Nebraska Child Care Refundable Tax Credit page will carry the 2026 opening date and access to eDASH when applications become available.
The application requires income, child and provider information
Form 7203 requires information about the taxpayer, qualifying children, household income and, when applicable, the child care provider.
The required information can include:
- The applicant’s Social Security number or ITIN.
- A spouse’s Social Security number when filing a joint return.
- The name, birth date and SSN, ITIN or ATIN for each qualifying child.
- Total household income for the tax year.
- The number of personal exemptions claimed on the Nebraska income tax return.
- The name and Nebraska DHHS license number of a licensed child care provider.
- Provider and authorization information for certain license-exempt providers in the Child Care Subsidy Program.
Families using an approved license-exempt provider through the Child Care Subsidy Program may also need to upload their DHHS authorization notice.
One Form 7203 can include up to 10 qualifying dependent children. Filing separate applications for each child can delay processing.
Nebraska has a $15 million annual limit for the refundable credit
The state can approve up to $15 million in Child Care Refundable Tax Credits for each tax year.
Nebraska processes completed applications in the order received until that annual limit is reached. If the cap is reached on a particular day, complete applications received that day share the remaining available credit on a prorated basis.
That limit was reached during the previous application cycle.
For tax year 2025, Nebraska reached the $15 million cap on Jan. 29, 2026. By March 8, the state had received 10,954 applications requesting a combined $22.77 million.
Applications submitted on Jan. 29 received approximately 37% of the credit amount requested after the remaining funds were prorated.
Eligible applications received after the annual limit is reached can be held in case additional credit becomes available.
Nebraska has not announced the exact January 2027 opening day
As of Aug. 19, the 2026 Form 7203 application remains closed.
Nebraska Department of Revenue provides tax-credit assistance at 402-471-5729 or 800-742-7474 for callers in Nebraska and Iowa.
The next scheduled step is the opening of applications in January 2027. Nebraska has not yet published the exact date.
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