In bankruptcy and in the collection of a money judgment, the full amount of any federal or state earned income tax credit refund shall be exempt from attachment, garnishment, or other legal or equitable process and from all claims of creditors.
§ 25-1553.Federal or state earned income tax credit refund; when exempt.
Article 15: Execution, Exemptions, and Foreign Judgments · Last amended 2004 · Last verified July 22, 2026
In one sentenceThe full amount of any federal or state earned income tax credit refund is protected from attachment, garnishment, other legal or equitable collection process, and from creditor claims, both in bankruptcy and in ordinary money-judgment collection.
Full Text of § 25-1553
Source
Laws 2004, LB 1207, § 6.
Plain-English Summary
Section 25-1553 protects one specific source of money without a dollar limit. In bankruptcy and in the collection of a money judgment, the full amount of any federal or state earned income tax credit refund is exempt from attachment, garnishment, any other legal or equitable process, and from all claims of creditors. Unlike the general personal property exemption in section 25-1552, which caps out at a set dollar figure, this protection covers the entire refund.
The exemption reaches both major settings where a creditor might otherwise try to reach the refund: an ordinary civil collection action on a money judgment and a bankruptcy proceeding.
Frequently Asked Questions
Can a creditor garnish my earned income tax credit refund in Nebraska?
No. Section 25-1553 exempts the full amount of a federal or state earned income tax credit refund from garnishment, attachment, and other collection process.
Is there a dollar limit on this exemption, the way there is for the general personal property exemption?
No. The statute protects the full amount of the refund, with no cap.
Does this exemption apply if I file for bankruptcy?
Yes. The statute states the exemption applies in bankruptcy as well as in the collection of a money judgment.
Does this cover the state earned income tax credit, the federal one, or both?
Both. The statute exempts the full amount of any federal or state earned income tax credit refund.
Do I need to do anything specific to claim this exemption for my tax refund?
The statute does not spell out a separate claim procedure here the way section 25-1552 does for general personal property, but identifying the refund as exempt in whatever collection or bankruptcy proceeding is underway remains the practical way to invoke the protection.
Source & verification. Section text and the amendment-history citation are
reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the
Nebraska Legislature. Last verified July 22, 2026. ·
Official source
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