The Nebraska homestead exemption is a unique law that you should know about, especially if you are considering filing for bankruptcy. Read on to find out more about the homestead exemption.
Nebraska. It is the Cornhusker state but some people also believe it is an expensive property tax state.
The average property tax rate in Nebraska is 1.61%. This puts it in the top 10 most expensive property tax states in the country, with some counties in Nebraska even enforcing a property tax of over 2%.
If you live in Nebraska, you may have become frustrated with this over the years. Well, what if you found out there may be a way around paying all of that property tax?
This is where the Nebraska homestead exemption comes in.
What is it? How does it work? Can you get it?
All of those questions will be answered in this guide.
What Is the Nebraska Homestead Exemption?
The Nebraska homestead exemption is a tax relief program that takes some of the cost of property taxes off of certain homeowners. It was enacted to help certain groups of individuals who may not have a regular income and that may need financial relief.
Because of this, the state of Nebraska foots the bill for those people and makes up for the tax revenue lost in local counties from those people.
With regards to bankruptcy, the Nebraska homestead exemption may also help you safeguard up to $60,000 of equity in your home. Enlist the help of a bankruptcy attorney to help you claim these exemptions.
Who Is Eligible?
For this exemption, Nebraska lists six main groups of people as eligible to participate in this program. They are the following:
- People 65 and older
- Veterans with a disability/illness not related to their service
- Disabled people
- Disabled veterans and their widow
- Veterans with homes contributed by the DVA (Department of Veterans Affairs) and/or their widow
- People with a disability
Of course, for each of these, there are specific criteria for eligibility.
For example, someone would be determined disabled if they had lost 75% of function in their arms, permanently cannot work due to physical limitations like needing a wheelchair or crutch, losing any part of an arm above the elbow, or someone with a developmental disability.
If you fit one of these categories, you can move on to the next stage of qualification.
Income Level
If you are an eligible individual, the amount of relief that you can get on your property taxes greatly depends on how much income you make.
The specific income brackets are available on the link above, but for now, we will provide you with a snapshot of what levels would give someone 100% relief and no relief at all.
Here is what level of income in each category would give someone 100% relief:
- Over 65 and single- up to $29,801
- Over 65 and married- up to $35,101
- Disabled and single- up to $33,601
- Disabled and married- up to $38,501
This is the level of income that makes each category ineligible:
- Over 65 and single- $43,801 and over
- Over 65 and married- $52,001 and over
- Disabled and single- $47,601 and over
- Disabled and married- $55,501 and over
As you can see, it is a little bit different for each category and the difference between being single versus makes a big difference. If your annual income is somewhere in between, check out the full chart.
Maximum Homestead Value
This is another important part of the exemption to understand because it can make you ineligible even if you are over 65 and disabled with the right income.
How does this work? It has to do with how much your house is worth.
Here, your home’s value would be put up against the maximum value in the county that the home is located in.
Other Factors
Additional factors affect your eligibility, such as if you recently filed an appeal for a previously rejected homestead application. If you have an appeal pending, then you may not be able to submit a new application right away.
Also, you have to have your age or disability status declared before the beginning of the calendar year. If that changes to an eligible status after January 1st, you have to wait until the next year to be fully eligible for this.
You must also own the home before January 1st of the year you are applying for the same reasons. Plus, you have to have lived in the home from January 1st to August 15th in order to receive the relief.
Widows and veterans cannot claim this relief until after the age of 57. To be eligible as a widow, your spouse must have died while on active duty and then own and occupy the house for the same dates as above.
See if You Are Eligible
Are you ready to start benefiting from this exemption? Interested in how this could affect your bankruptcy filing? Call Husker Law in Omaha at 402-415-2525 to schedule a consultation to see if you are eligible today!
Our law firm also focuses on bankruptcy laws, filing bankruptcy, family law, divorce, and more.
