New Tax Credit to Help Nebraska Caregivers

Starting next year, some family caregivers in Nebraska could qualify for a new state tax credit to help offset out-of-pocket expenses that arise when caregiving.

Caregivers who meet certain income requirements could get a tax break of up to $2,000 per year — or up to $3,000 annually if the family member they care for is a veteran or has been diagnosed with dementia. Eligible expenses include hiring a home care aide, paying for adult day care, buying medical equipment and other needs.

To qualify, a caregiver must make less than $50,000 a year (or $100,000 if filing jointly as a married couple) and provide care for a family member who lives in a private residence and needs help with at least two activities of daily living, such as eating and dressing.

The credit will be available for taxable years beginning Jan. 1, 2025. Learn more at aarp.org/ne.