In April 2024, Governor Jim Pillen signed into law LB937, which establishes tax credits for individuals providing care to family members with additional needs through the Caregiver Tax Credit Act. This legislation marks a significant step in supporting family caregivers of individuals with disabilities in Nebraska.
Nebraska Revised Statutes §§ 77-3163 to 77-3166 detail the provisions of the Caregiver Tax Credit. This non-refundable tax credit covers out-of-pocket costs incurred by caregivers for specific services. Eligible expenditures include home modifications, hiring a home care aide, respite care, adult day care, health care equipment, and assistive technology. Caregivers may claim a credit equal to 50% of eligible expenditures, up to a maximum of $2,000 per tax year. For caregivers of veterans or individuals diagnosed with dementia, the maximum allowable credit increases to $3,000. To qualify, a caregiver must have a federal adjusted gross income of less than $50,000 for single filers or less than $100,000 for joint filers.
“This tax credit is essential in supporting unpaid caregivers and their families by addressing costs directly related to special health care needs,” said Tony Green, Director of the Division of Developmental Disabilities within the Department of Health and Human Services.
The passage of the Caregiver Tax Credit Act demonstrates the commitment of Governor Pillen, Senator Bostar, and Nebraska leaders to recognize and support the invaluable work of family caregivers. By doing so, Nebraska aims to enhance access to resources for individuals with disabilities. The state is now the second in the nation to implement this kind of tax credit for family caregivers.
For assistance, please contact the Nebraska Department of Revenue at (800) 742-7474 (NE and IA) or (402) 471-5729.