AARP Nebraska is encouraging unpaid family caregivers to explore a state tax credit that can help offset the cost of keeping loved ones at home. During November’s National Family Caregivers Month, the organization is also drawing attention to the financial and emotional strain of providing that care.
Nebraska’s roughly 300,000 family caregivers provide 210 million hours of unpaid care annually, valued at $4.5 billion, according to AARP’s “Valuing the Invaluable” report. Their work helps people remain in their homes and communities rather than relying on additional paid care or public programs.
Jina Ragland, AARP Nebraska’s senior associate state director of advocacy and outreach, said caregiving can range from checking medications and providing transportation to offering around-the-clock assistance. “It’s really what you are providing to the person that you love that’s allowing them to live as safely and independently as possible,” Ragland said.
For many caregivers, those responsibilities come on top of full-time work and raising children. Ragland said some eventually reduce their work hours or leave jobs, affecting their income, benefits and retirement savings long after their caregiving responsibilities end.
The Nebraska Caregiver Tax Credit, which took effect for the 2025 tax year, covers 50% of eligible out-of-pocket expenses. The maximum annual credit is $2,000, or $3,000 when the eligible family member is a veteran or has a dementia diagnosis.
The credit is nonrefundable, meaning it can reduce Nebraska income tax owed but cannot provide a refund beyond that tax liability. Any unused credit cannot be carried forward to another year. nebraskalegislature.gov
According to the Nebraska Department of Revenue, caregivers must have federal adjusted gross income below $100,000 for married couples filing jointly or below $50,000 for other filing statuses. The person receiving care must live in a private residence and need help with at least two activities of daily living, as certified by a licensed health care provider.
Those activities include eating, dressing, bathing, moving independently and using the toilet. The person receiving care can be any age, so eligibility is not limited to families caring for older adults.
Qualifying expenses can include home modifications, necessary equipment, home care aides, respite care and adult day care. General household maintenance does not qualify.
Caregivers must apply through the Department of Revenue and provide supporting expense records and health care provider certification. Applications are processed in the order received until the annual funding limit is reached, and caregivers must receive approval before claiming the credit on their state returns. Nebraska Department of Revenue
Ragland said AARP is reviewing feedback from the program’s first year and intends to seek changes during the next legislative session. “We are planning to come back in 2027 and look at expanding the legislation to provide more options and eligibility for more people to access it,” she said.
She also encouraged caregivers to seek emotional support and respite rather than neglecting their own needs. “If you aren’t taking care of yourself, there’s no way you can fully take care of the loved one that you have,” Ragland said.
Information about the credit, eligibility and application tutorials is available at aarp.org/necaregiving. Official requirements and application forms are available through the Nebraska Department of Revenue.