Nebraska program
Tax credit for what a caregiver spends
A Nebraska tax credit for certain unreimbursed costs of caring for a qualifying family member at home.
What it is
A Nebraska tax credit for certain unreimbursed costs of caring for a qualifying family member at home.
The Caregiver Tax Credit Act can reduce Nebraska tax for a qualifying caregiver. Income and certified help with daily activities both matter. The annual funding is limited and applications are processed in order.
Eligibility rules
- For tax years from 2025, federal adjusted gross income must be under $100,000 when filing jointly or under $50,000 otherwise.
- The qualifying person must live in a private residence and need certified help with at least two of the listed daily activities. Being claimed as a dependent is not the only qualifying relationship.
- The person receiving care may be a dependent or a qualifying spouse, parent or other relative by blood or marriage. A clinician must certify help with at least two listed daily activities. Only eligible costs the caregiver actually bears count; reimbursed expenses do not, and a tax preparer can check how another deduction or credit affects the same expense.
- The listed daily activities are walking or moving, feeding, dressing, personal hygiene, toileting and continence. Ordinary household spending does not qualify merely because a family member has cancer.
What you get
- A credit for 50% of eligible spending, ordinarily capped at $2,000 per qualifying person each tax year.
- No fee to request certification.
What the help covers
- A credit reduces tax liability. It does not by itself create a refund when no tax is owed.
- Specified veteran or dementia circumstances have a $3,000 maximum. Multiple caregivers share the qualifying person’s annual cap. Eligible costs include specified home changes, equipment and care services; reimbursed costs do not qualify.
If you decide to apply
- Ask the Department of Revenue about form 3165 and the healthcare certification on form 3165C.
- Have care-cost receipts and your tax information ready, and ask the clinician to describe help needed with daily activities.
Nebraska Department of Revenue · Official page ↗
After you apply
- Both forms 3165 and 3165C are required. A certification letter supports the credit claimed on the tax return.
- Applications are processed in the order received until the annual certified amount is exhausted.
- The credit is claimed on the Nebraska return for the year of eligible spending after DOR authorizes it. Funding is limited and requests are handled in order; DOR can confirm the current submission dates and available funding. The credit cannot exceed the tax owed and unused credit does not carry forward.
Good to know
The credit is nonrefundable and has no carryforward. It cannot exceed the tax you owe for that year.
Other details
- Receipts and the clinician’s certification address different parts of the application. Spending alone does not establish care eligibility.
- The certification funding cap is $1.5 million in each fiscal year from July 1, 2025 through June 30, 2027, then $2.5 million annually. This funding calendar differs from the year of eligible spending. DOR confirms current dates and available funds. Supporting receipts must be kept at least three years.
Official sources
“Could our care expenses qualify for the Nebraska caregiver credit? How much tax could it actually reduce and what expenses count, and could you help us decide whether to seek certification?”
Why I’m asking: I want to understand whether the credit would return any of what we spend on care.
More background and detailed requirements
Additional program information and published rules
Who does what
The three parts, side by side. The agency decides; nobody on this page does.
You
Keep receipts and file forms 3165 and 3165C early.
Your social worker
A clinician completes the certification form.
The care team
The clinician certifies the help your child needs with daily activities.
- Who decides
- The Nebraska Department of Revenue.
- Ask the care team
- “Can you complete Nebraska form 3165C certifying the help my child needs with daily activities, for the caregiver tax credit?”
How to apply
First step: Start keeping receipts now, and ask the clinic about form 3165C.
- Keep receipts for everything you buy for your child’s care.
- Ask the clinic to complete form 3165C.
- Apply early in the year: the pot is finite.
Official application / program page ↗
Where it starts: Apply on form 3165 with the healthcare certification on form 3165C.
What to gather
- Receipts for care costs
- Last year’s tax return
How long: Certification is at the Department of Revenue’s pace; apply early in the year.
What a yes looks like
A certification letter you use on the return.
What a no looks like, and the next move
If the pot ran out, ask when the next year’s applications open.
Watch out
- It is nonrefundable with no carryforward: worth only what you owe.
- The annual pot is finite and applications are taken in order.
- Forms 3165 and 3165C are both required.
Dates that change this
2025-01-01: Applications are processed in the order received until the annual certified amount is used up, so applying early matters.
The numbers and the rules
The arcane layer, kept on purpose. Checked September 11, 2026.
What it is worth
Half of what you spend out of pocket, up to $2,000, if income is under $100,000 filing jointly.
- $2,000/year — Ordinary annual credit cap per qualifying individual; specified veteran/dementia cap is $3,000
- $50/year — Share of eligible spending the credit covers
- $100,000/year — Income ceiling filing jointly
What it costs the family: None to apply.
The eligibility facts, as published
- Income
- federal adjusted gross income under $100,000 filing jointly, or $50,000 otherwise
- Other
- A qualifying dependent, spouse, parent or relative by blood or marriage in a private residence, with certified assistance needs in at least two listed daily activities.
- Residency
- Nebraska
- Processing standard
- processed in the order received until the annual amount is used up
Decisions this site cannot make: Department of Revenue certification on forms 3165 and 3165C
Expect friction on: Applications are taken in order until the annual pot runs out
The trap: It is nonrefundable and there is no carryforward, so it is only worth what you owe in the year.
Where I read this
- Caregiver Tax Credit Act — Nebraska Department of Revenue, read September 10, 2026