Nearly 300,000 Nebraskans care for a loved one — and often spend their own money to do it. But many caregivers may not realize financial relief is available.

Nebraska lawmakers passed the Caregiver Tax Credit Act in 2024, and the credit took effect last year. It can help offset the cost of respite care, home-care aides, medical equipment and certain changes needed to make a home safer and more accessible.

Jina Ragland, senior associate state director of advocacy and outreach with AARP Nebraska, explained how the credit works.

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"It's a non-refundable tax credit. So for those that don't recall what non-refundable means, you have to actually be paying into taxes. So it's money that's taken off your taxes before you actually get the, the end of the tax bill at the end of the tax year," Ragland said.

The credit covers half of eligible expenses up to $2,000 for most caregivers and $3,000 for those caring for a veteran or someone with dementia.

Ragland said the financial help can also make it easier for loved ones to remain safe and independent in their own homes as they age. To qualify, caregivers must meet income limits, and their loved one must live at home and need help with at least two daily activities.

Outreach groups point out that caregiving doesn't always come with a formal title. It may look like helping a loved one bathe, preparing meals, managing medications or making sure the home remains safe. They note that many Nebraskans doing that work may not realize they qualify as caregivers.

"That's where we're spending a lot of our time now, and again, why we wanna get the word out again is you are caring for someone in their home and not receiving whatever those expenses are out of your pocket. You're not being reimbursed for those types of things. Those are all types of things that recognize you as a caregiver," Ragland said.

Ragland said Nebraska's unpaid family caregivers provide more than 200 million hours of care each year — work valued at about $4.5 billion. Their efforts also help reduce the need for more expensive institutional care by allowing loved ones to remain safely in their own homes.