Nebraska caregivers may be overlooking valuable financial relief

Key Takeaways:

• The Caregiver Tax Credit Act passed in 2024 and went into effect last year.
• A non-refundable tax credit offers up to $2,000 or $3,000 for veterans and dementia care.
• Caregivers must meet income limits and provide help with at least two daily activities.
• Nearly 300,000 Nebraskans offer unpaid caregiving, totaling 200 million hours annually.
• Many people do not realize their caregiving qualifies for the tax credit.

The Caregiver Tax Credit Act

Nebraska lawmakers passed the Caregiver Tax Credit Act in 2024, and it officially took effect last year. Nearly 300,000 Nebraskans currently look after a loved one—often using their own money for essential expenses such as respite care, medical equipment, or home-accessibility modifications. However, many relatives providing these services may not realize they can qualify for substantial tax relief.

Who Qualifies and How

The law is specifically designed as a non-refundable tax credit, meaning you must actually owe state taxes to benefit. For most caregivers, the credit covers half of eligible expenses, up to $2,000 per year. For those caring for a veteran or someone diagnosed with dementia, the limit increases to $3,000. To access the credit, caregivers must meet certain income criteria, and the loved one must live at home, needing assistance with at least two daily activities.

Recognizing the Caregiver Role

A significant hurdle is that many Nebraskans don’t view themselves as caregivers. Yet simple tasks—helping someone bathe, preparing meals, managing medications, or keeping the home safe—often qualify. As Jina Ragland, senior associate state director of advocacy and outreach for AARP Nebraska, explains, “That’s where we’re spending a lot of our time now… You are caring for someone in their home and… those are all types of things that recognize you as a caregiver.”

Economic Significance

The scope of unpaid care across the state is enormous. Ragland notes that Nebraska’s unpaid family caregivers provide more than 200 million hours of care annually, a labor valued at roughly $4.5 billion. By helping families keep aging or disabled loved ones in their homes, the act also reduces the need for more expensive, and often less personal, institutional care.

Charting a Path Forward

With the Caregiver Tax Credit Act, Nebraskans can gain meaningful financial reprieve. Advocates urge families and friends who assist older adults or individuals with long-term health conditions to determine whether they meet the requirements. The hope is that by raising awareness, those who have earned this tax break will be able to claim it—and continue providing the compassionate, at-home support that loved ones deserve.