See http://taxsim.nber.org/out2psl/863 for two PE calculations of similar taxpayers.
Both examples have 3K childcare. Example 1 has 20K AGI and example 2 has 54K AGI. The former is given 2K Nebraska child tax credit and the latter none. However, as far as I can tell, the 2K child tax credit starts to phase out at 75K. So why does the later not get the credit?
It seems like there are 3 child care tax credits in Nebraska.
One is described here
https://revenue.nebraska.gov/tax-credits/child-care-tax-credit-act/child-care-refundable-tax-credit
This is the one that would suggest a 2K credit. It seems odd that it isn't capped at expenditure. It looks like PE doesn't make it depend on having any expenditure at all.
Another is here
https://taxsim.nber.org/historical_state_tax_forms/NE/2025/f_2441N.pdf
This one is for taxpayers with AGI<=29K. I would do this calculation as .32*3000=960. So not an explanation for the 2K observed in PE.
Both of these are refundable. Can a taxpayer get both? There is a 3rd non-refundable that is .25 times the federal credit. That wouldn't apply to either of our examples.
As you can tell, I am pretty confused. Can you help me out?
See http://taxsim.nber.org/out2psl/863 for two PE calculations of similar taxpayers.
Both examples have 3K childcare. Example 1 has 20K AGI and example 2 has 54K AGI. The former is given 2K Nebraska child tax credit and the latter none. However, as far as I can tell, the 2K child tax credit starts to phase out at 75K. So why does the later not get the credit?
It seems like there are 3 child care tax credits in Nebraska.
One is described here
https://revenue.nebraska.gov/tax-credits/child-care-tax-credit-act/child-care-refundable-tax-credit
This is the one that would suggest a 2K credit. It seems odd that it isn't capped at expenditure. It looks like PE doesn't make it depend on having any expenditure at all.
Another is here
https://taxsim.nber.org/historical_state_tax_forms/NE/2025/f_2441N.pdf
This one is for taxpayers with AGI<=29K. I would do this calculation as .32*3000=960. So not an explanation for the 2K observed in PE.
Both of these are refundable. Can a taxpayer get both? There is a 3rd non-refundable that is .25 times the federal credit. That wouldn't apply to either of our examples.
As you can tell, I am pretty confused. Can you help me out?