$3,000 Nebraska Caregiver Tax Credit Act Signed

Family caregivers in Nebraska can now receive a nonrefundable tax credit for qualified expenses incurred while caring for a loved one. Those who qualify can receive a caregiver tax credit of up to $3,000 in Nebraska. This new tax credit will be available to residents starting next year.

How much money can a caregiver receive?

On Tuesday, Governor Jim Pillen signed the Caregiver Tax Credit Act (Assembly Bill 937). Nebraska’s Caregiver Tax Credit aims to help families and caregivers cope with financial hardship.

Lawmakers approved Legislative Bill 937 by a 45-0 vote during the final legislative day on April 18. The credit is equal to 50% of eligible expenditures for the care or support of a family member during the tax year. Costs should be directly related to maintenance and should not include general home maintenance costs such as electrical, plumbing and paint repairs.

Caregivers can claim up to $2,000 in credits per fiscal year, or up to $3,000 if the patient is a veteran or has been diagnosed with dementia. If more than one caregiver is claiming credit for the same member, the credit amount will be split between the caregivers. The caregiver tax credit can be claimed for up to $1.5 million each year until June 30, 2027.

Despite the tax credit, caregivers still have to pay for eligible expenses out of pocket, including home health care, doctor visits, and medical supplies. However, you must keep your receipts to receive a refund when filing your taxes.

Nebraska’s Caregiver Tax Credit: Who Can Get It?

AARP Nebraska estimates the number of family caregivers at approximately 179,000, providing more than 168 million hours of unpaid care worth approximately $2.8 billion each year. Caregivers care for their families with love and affection, but the actual financial cost is estimated to average more than $7,200 per household per year.

To qualify for the caregiver tax credit in Nebraska, the caregiver’s adjusted gross income (AGI) must be less than $50,000 (or $100,000 if married filing jointly).

Caregivers must also be certified by a health care provider to care for a relative who requires assistance with at least two activities of daily living. Another requirement is that the family member or relative must live in a private home and not a nursing home, assisted living facility, or residential care facility.

Nebraska is now the second state to introduce a caregiver tax credit. The first state is Oklahoma. A similar bill in Oklahoma went into effect earlier this year. Unlike Oklahoma’s tax credit, Nebraska’s caregiver tax credit has no age requirements for qualifying family members. This means people of all ages can receive care at home.

For more information about the caregiver tax credit, visit the Nebraska Department of Revenue website.