Do You Qualify for Nebraska's New Caregiver Tax Credit?

Starting in January, a state tax credit is available to help Nebraskans offset some of the costs they incur while taking care of loved ones—from home care aides, to medical equipment, to home modifications.

Eligible family caregivers may qualify for a maximum annual credit of $2,000, or up to $3,000 for those caring for a veteran or someone with dementia.

“You give so much of yourself and so much money and so much time,” says AARP volunteer Joyce Beck, who helped to advocate for the credit at the Nebraska Legislature last year.

Beck, 72, of Grand Island, retired early from her career as a hospital administrator to care for her husband, who had multiple sclerosis, prostate cancer and kidney failure. Getting $3,000 back would have helped her cope with the cost of home modifications or other needs, she says.

Providing relief for the state’s nearly 180,000 family caregivers has been a top priority for AARP Nebraska, which advocated for the credit, says Jina Ragland, advocacy director.

To be eligible, caregivers must have federal adjusted gross incomes of less than $50,000 for an individual or less than $100,000 for a married couple filing jointly. The person receiving care must need help with at least two activities of daily living, such as bathing or eating. AARP has an online tool — at aarp.org/necaregiving — to help caregivers determine if they may be eligible.

The pool of money available for the credit is limited to $1.5 million annually for the first two years, and then is capped at $2.5 million each year after that. Once those limits have been hit, the credit for that year will go away, so it’s important to file early, Ragland says.

Democratic state Sen. Eliot Bostar, of Lincoln, who introduced the tax credit bill, says he will work to boost available funding in the future.

—David Lewellen