File Now for Nebraska’s Homestead Exemption
By: Source: AARP.org Date Posted: 2008-01-23 17:10:07.157294-05:00
What is a homestead exemption?
Nebraska's homestead exemption gives eligible homeowners on limited incomes a break on their property taxes. This annual exemption excludes all or a portion of the value of a person's home and up to one acre of land that the house is built on from property taxes. Depending on your situation, you may owe little or no property tax under the exemption.
Who is eligible?
Eligibility is based on your age, income and the value of your homestead. (Assets including cars and personal possessions such as furniture or jewelry are not counted).
If you are a homeowner age 65 and over by Jan. 1, 2008, and have an income below $30,100 for an individual or $35,100 in combined income for a couple, you may qualify for the homestead exemption. You must own and occupy your home from Jan. 1 through Aug. 15 each year to get the tax relief.
Important: Persons under age 65 with disabilities and disabled veterans may also be eligible for the exemption, but different guidelines apply. Check with your County Assessor's office for details.
What is the maximum value on the homestead to be eligible?
The maximum value of a homestead is $95,000 or 200 percent of the county's average assessed value of single family residential property, whichever is greater. If the assessed value exceeds the maximum value by $20,000 or more, the homestead is not eligible for the exemption.
What medical expenses can I deduct from my income to qualify for the homestead exemption?
Don't overlook your medical costs.
You may think that your income is too high to qualify for the homestead exemption. However, after you deduct certain medical expenses from your income, you may indeed be eligible. People often don't realize that they can deduct some of their health care costs and fail to claim the homestead exemption.
Medical expenses that equal more than four percent of your household income may be deducted in determining your eligibility for the exemption. You may deduct the cost of health insurance premiums, including Medicare Part B premiums and supplemental health insurance premiums; long-term care insurance premiums; the cost of goods and services from a licensed health practitioner or a licensed health facility; travel costs for out of town medical appointments, including hospital stays or to purchase drugs if you have no pharmacy in town; and the cost of insulin and prescription drugs. The cost of over-the-counter, non-prescription medicines cannot be deducted. To learn more about allowable deductions for medical expenses, contact your County Assessor's office.
How and when do I file for the Homestead Exemption?
You must file for a homestead exemption after Feb. 1 and on or before June 30. Applications are available from your County Assessor's office or you can find them online. [http://www.revenue.state.ne.us/tax/current/current.htm]
Where can I get help filing for the Homestead Exemption?
If you need assistance in completing the application, visit or call your County Assessor's office. They can answer your questions and may be able to assist you with the paperwork. Or consider asking a family member or friend to help you with the application.
Where can I get more detailed information about the Homestead Exemption?
This article provides general information about the homestead exemption. For further details, please contact your County Assessor's office or download an information guide from the Nebraska Department of Revenue online.
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