Tax Credit is finally on the way for 179,000 family caregivers in Nebraska
NORFOLK, Neb. -- Nebraska has become the second state in the nation to adopt an expansive tax credit for 179,000 family caregivers and the parents, spouses, and other loved ones they care for daily. The bill passed during the 2024 Nebraska legislative session and went into effect on January 1 of this year.
Associate State Director of Advocacy and Outreach Jina Ragland explained, “A healthcare provider is someone who's providing unpaid short-term or long-term care to a parent, spouse, or another loved one. They're helping them with their everyday needs and activities and personal tasks such as transportation, managing finances, scheduling appointments, shopping, even things like wound care and medication management.”
To receive the Healthcare Tax Act benefit, one needs a licensed health care provider, and the person receiving care must need assistance with at least two activities. These activities include dressing, feeding, personal hygiene, continence, and toileting. If assistance is needed with at least two of these daily activities, a healthcare provider can certify that the caregiver is providing the necessary assistance. Additionally, the caregiver must be an eligible family member who qualifies as a dependent, such as a spouse, a parent, or another relation by blood or marriage approved by the state.
One stipulation that some may not be aware of is that the caregiver must live in a private residence. This requirement does not apply to those living in an assisted living, nursing facility, or residential care home. The caregiver must reside in the home where the person is receiving care.
Regarding the financial benefit, Ragland said, “It will be up to $2,000 for our general caregivers. For those receiving a higher amount around $3’000, That is an individual who cares for a Veteran or maybe an individual that has a dementia related diagnosis.
If you have those two qualifications, you can receive the higher end of the $3,000. The other thing that's important to also keep in mind. This would be 50% of whatever your out-of-pocket costs are that you're submitting. If you want to receive the full $2,000, you would have to supply receipts and submit up to $4,000 in out-of-pocket expenses.
“It's also important for people to remember this is up to that amount, “Ragland said. “And so even if you don't get to that amount, it's still important that you still file it and get partial of whatever that might be back on your as a tax credit. Another factor that people need to think about is your income. So if you have to make $50,000 or less as a single person or up to $100,000 or less for a couple, be another caveat of the qualifications on the income side of things.”
Nothing has yet been posted on their website, but as they promulgate rules and regulations, that information will also be available.
“If you want to qualify or find more information. Ragland said, “We do have an eligibility tool out there. This is not eligible to receive until you file your taxes in 2026. We really want people to get out and start doing things now and getting prepared. If you are interested and would like to know more, you can go to AARP.org/@anycaregiving and there will be more information that the Department of Revenue will be administering about the application.”