Supporting Family Caregivers in Nebraska

Caring for a parent, spouse, or other loved one can be a 24/7 job that is emotionally, physically, and financially difficult. That’s why AARP works tirelessly to support family caregivers—striving to make your big responsibilities a little bit easier.

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Nebraska’s Caregiver Tax Credit

Support is finally on the way for Nebraska’s 179,000 family caregivers and the parents, spouses, and other loved ones they care for with a tax credit provided by the Caregiver Tax Credit Act.

The Caregiver Tax Credit Act passed during the 2024 Nebraska legislative session and will take effect on January 1, 2025. The tax credit will be available for the 2025 tax year. Nebraska is the second state in the nation to adopt an expansive tax credit for family caregivers.

About the Tax Credit:

The Caregiver Tax Credit Act provides a nonrefundable tax credit for out-of-pocket costs incurred by the unpaid family caregiver for a limited set of services. The expenses must be directly related to assisting the family caregiver in providing care to an eligible family member. The tax credit is capped at $2,000 per year for most participants. Individuals caring for veterans or those with a dementia-related diagnosis will receive up to a $3,000 tax credit. There are no age restrictions to qualify for the tax credit.

Eligibility Tool Questionnaire

Click here to answer six questions and find out if you may qualify*.

*Information and interactive forms are made available to you as self-help tools for your independent use and are not intended to provide official eligibility determinations for this tax credit. We cannot and do not guarantee their applicability or accuracy regarding your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. For an official eligibility determination, you must apply for the tax credit through the official application made available by the relevant government authority in your state.

Qualifications to Receive the Tax Credit:

• Eligible Nebraskans receiving care from a family caregiver must require assistance with at least two activities of daily living (ADLs), as outlined in the qualifications section. The ADLs must be certified by a licensed health care provider.
• Family caregivers—or those providing care and support for an eligible family member—must have a federally adjusted gross income of less than $50,000 (individual) or less than $100,000 if a married couple filing jointly to receive the tax credit. They must also personally incur uncompensated expenses directly related to the care of an eligible family member.
• Individuals must qualify as a dependent, spouse, parent, or other relation by blood or marriage to the family caregiver.
• Individuals must live in a private residential home—not an assisted living center, nursing facility, or residential care home.

How to Apply for the Tax Credit

Instructions

Family caregivers must apply for the tax credit with the Nebraska Department of Revenue (NDOR). If approved, NDOR will certify the tax credits to the family caregiver. NDOR will process applications in the order received based on the following annual limitations for the State fiscal year:

• July 1, 2025 to June 30, 2026: $1,500,000
• July 1, 2026 to June 30, 2027: $1,500,000
• State fiscal years after: $2,500,000

For the 2025 taxable year, NDOR began accepting applications in February 2025 for eligible expenditures made on or after January 1, 2025. You can apply for the tax credit on a rolling basis until limitations are reached. View the Nebraska Tax Credit Authorization Table.