How do I claim Nebraska's new child care refundable credit on Form 7203?

by TurboTax•14• Updated 2 months ago

Nebraska's new child care refundable credit can provide up to $2,000 per child. Before you can claim the credit on your tax return, you must first apply through the Nebraska Department of Revenue’s eDASH portal. Once certified, you can return to TurboTax and claim the credit.

To qualify for the new child credit, you must provide the following information on your application:

You and your spouse must have a valid Social Security number or Individual Taxpayer Identification Number (ITIN).
The name, date of birth, and SSN of all dependent children 5 years or younger (as of December 31 of the calendar year in which the taxpayer is applying).
Your total household income must be $150,000 or less.

For additional information, check the state's website.

How to apply

You can complete the application online through the Nebraska Department of Revenue Electronic Documentation and Submission Hub (eDASH).

Go to the Nebraska Department of Revenue’s eDASH portal.
If you don’t already have an account, you’ll need to create one. This involves providing some basic personal information.
Fill out the application form, providing all the required information about your children and your household.
Double-check your application for accuracy, then submit.

Claiming the credit on your tax return

Once your claim has been certified and returned to you, you’ll need to enter the Certification Number and Reserved Credit Amount from the Estimated Credit Authorization section of Form 7203.

Sign in to TurboTax.
Start or continue your state return.
When you reach the Property Tax or other Nebraska Credits screen, look for the new child credit and enter in your information as stated above.
Select Continue.
Complete the rest of your tax return and file it as usual.