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Nebraska Family Caregiver Tax Credit

Nebraska's Caregiver Tax Credit Act provides a nonrefundable state income tax credit for family caregivers who personally incur uncompensated expenses caring for an eligible family member. The credit equals 50% of eligible expenses, up to $2,000 per year, or up to $3,000 if the eligible family member is a veteran or has dementia. The caregiver must have federal AGI under $50,000, or under $100,000 if married filing jointly, and must apply to the Nebraska Department of Revenue before claiming the credit. Operative for tax years beginning on or after January 1, 2025.

State income tax credit equal to 50% of eligible caregiving expenses, up to $2,000 per year, or up to $3,000 if the eligible family member is a veteran or diagnosed with dementia. Caregiver federal AGI must be under $50,000, or under $100,000 if married filing jointly. Eligible family members can include a dependent, spouse, parent, or other relation by blood or marriage who lives in a private residence and needs help with at least two activities of daily living. Family caregivers must apply to the Nebraska Department of Revenue and receive approval before claiming the nonrefundable credit.

Eligibility

  • Care recipient must have a qualifying disability
  • Relationship: spouse, parent, other relative

Questions to ask the program

These are questions to ask the program, not a verdict on your eligibility. Confirm the current rules directly with the program.

  • Does the person receiving care live in Nebraska? — Residency is usually the first thing a program checks.
  • Does your relationship to the person — spouse, parent, or other relative — count for this program?
  • What are the current income and asset limits, and whose income counts?
  • What counts as a qualifying disability or level of care need, and what documentation shows it?
  • Which tax year does this apply to, and what form claims it?
  • Does your employer already offer this, and have they told staff? — Some credits are claimed by the employer, not by you — asking is the move.

Services

State income tax credit equal to 50% of eligible caregiving expenses, up to $2,000 per year, or up to $3,000 if the eligible family member is a veteran or diagnosed with dementia. Caregiver federal AGI must be under $50,000, or under $100,000 if married filing jointly. Eligible family members can include a dependent, spouse, parent, or other relation by blood or marriage who lives in a private residence and needs help with at least two activities of daily living. Family caregivers must apply to the Nebraska Department of Revenue and receive approval before claiming the nonrefundable credit.

How to apply

  • The Family Caregiver applies by submitting Form 3165 (Family Caregiver Tax Credit Application) and Form 3165C (Licensed Health Care Provider Certification) to DOR along with required documentation; the credit must be approved by DOR before it can be claimed on Form 1040N

Use the official program page for application details: official program page.

  • cdctc (companion): Federal CDCTC may also apply for dependent care expenses