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2/1/2013
AARP NEBRASKA

AARP Supports $500 Tax Credit for Nebraska Caregivers

LINCOLN-AARP Nebraska is backing state legislation that provides a tax credit to family caregivers of older adults.

LB 264, introduced by Sen. Kate Bolz of Lincoln, would create a $500 tax credit for individuals caring for a family member age 65 and over who has a disability and a limited income. The tax credit would be refundable to caregivers with incomes up to 250 percent of poverty. Caregivers between 250 and 500 percent of poverty would qualify for a non-refundable tax credit.

Nebraska caregivers contribute an estimated 210 million hours of unpaid care valued at $2.2 billion annually. Providing support for family caregivers should be an important part of Nebraska's long-term care policy, said Mark Intermill, advocacy director for AARP Nebraska.

"Caregiving can be a very difficult endeavor. It exacts a financial, social and emotional cost," he said. "As a society and as taxpayers, we benefit from the services that caregivers provide. A tax credit will allow caregivers to obtain respite or other services that may help ease their burden."

Family caregivers play a critical role in delaying and in some cases preventing admission to expensive nursing facilities, Intermill said. The cost of long-term care in a nursing home is typically covered by Medicaid once people exhaust their finances and become eligible for the program. On average, institutional long-term care is three times the cost of in-home care.

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About AARP

Serving more than 205,000 members in Nebraska, AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole.

Follow us on Twitter @AARPNE, find AARP Nebraska on Facebook or visit the state webpage at www.aarp.org/ne.

(CONTACT: Devorah Lanner, (402) 323-5425 or dlanner@aarp.org Mark Intermill, (402) 323-5424 or mintermill@aarp.org)