Page 34

“Helping People Living Better Lives”

| pg. 490 Family Assistance Plan (TFAP). DHHS requires the reporting of the use of these funds and the number of families served with these funds. 7. Nebraska Earned Income Tax Credit (EITC). Most states levy state income taxes, but the tax burden on low–income families varies significantly depending on where they live. A growing number of states offset this burden with state earned income tax credits and/or state child and dependent care tax credits. These credits are typically based on provisions in the federal income tax code, but states make all decisions regarding eligibility and benefit levels. This tax credit is now refundable, which means it will first be used to lower or eliminate any state income tax the individual might owe, and if the credit is larger than what the individual owes in state tax, the amount will be refunded. Nebraska is counting only the refundable portion of the Nebraska EITC as a qualifying state expenditure for Nebraska’s TANF Maintenance–of–Effort requirement. See requirements below for Nebraska EITC. a. The income eligibility criteria rules are the same as the federal EITC (2022); The income limit for one- parent family with two qualifying children is $49,399/year (2022). The benefit level refundable credit is 10% of federal EITC (2022); b. The maximum benefit for a family with two qualifying children is $660/year (2022). 8. Nebraska Child and Dependent Care Tax Credit. The Child and Dependent Care Tax Credit is a tax benefit that helps families pay for the childcare they need in order to work or look for work. The credit is also available to families that must pay for the care of a spouse or an adult dependent who is incapable of caring for himself or herself. Nebraska is counting only the refundable portion of the Nebraska Child and Dependent Care Tax Credit as a qualifying state expenditure for Nebraska’s TANF Maintenance–of–Effort requirement. See requirements below for Nebraska’s Child and Dependent Care Tax Credit: a. The income eligibility criteria for the Child and Dependent Care Tax Credit are the same as for federal credit (2022). The is no income limit for a family with two or more qualifying children, but there is a phase-out schedule if a family's income is over $438,000. Eligible childcare expenses follow the same rules as federal credit (2022); b. Eligible childcare expenses follow the same rules as federal credit (2022); c. The benefit level for refundable credit is based on 25–100 percent of the federal credit, depending on income (2022). The maximum benefit for a family with two qualifying children is $6,000/year (2022). 9. Lifespan Respite Subsidy Program for Children. DHHS, Office of Home and Community– Based Services offers respite service to caregivers who need a temporary break from care giving so they can come back refreshed and ready to provide good care again. Respite service pays someone to come into the home, take care of a child with disabilities or special needs, and give the primary caregiver a temporary break. This would include adult children caring for siblings with disabilities or special needs and parents of children with disabilities or special needs. This program pays for respite services (someone to come into the home to care for a child with a disability or special needs to give the primary caregiver a temporary break). It is for people who are not receiving the service from another government program. Caregivers who need a temporary break from providing care to persons of any age