AARP Poll: Voters Overwhelmingly Support Caregiver Tax Credit

Tax relief for unpaid family caregivers should be a top tax priority for the new Congress, according to AARP’s latest “National Legislative Priorities Survey,” conducted by Fabrizio Ward and Impact Research.

The new survey of registered voters 18-plus nationally — and in the 28 most competitive congressional districts — found that 84 percent of voters support a federal tax credit for unpaid family caregivers who work.  Results showed support for the credit across party lines, and garnered support among both men and women of all education levels and races.

Family caregivers help parents, spouses and other loved ones remain at home — where they want to be. They help with everything including bathing and dressing, medication, and transportation, spending thousands out of their own pockets every year. 

Support for a Caregiver Tax Credit surpassed other tax proposals gaining traction on Capitol Hill as Congress works to craft a tax package. Both nationally and in competitive districts, voters are more likely to support a tax credit for unpaid family caregivers compared to eliminating federal income taxes on tips, which 70 percent of voters nationally and 71 percent of voters in competitive districts support, or eliminating federal income taxes on overtime income, which garnered support from 64 percent of voters both nationally and in competitive districts.

“It goes to show you … how broad the support is for a caregiver tax credit,” says John Hishta, AARP’s senior vice president of campaigns who is advocating for the credit.

Outside of Social Security issues, where you generally find consensus, this kind of bipartisan voter support, he says, “is something you rarely see.”

How the caregiver tax credit would help caregivers

AARP estimates that caregivers spend an average 26 percent of their income or about $7,200 out of pocket each year to care for their loved ones.

The up to $5,000 proposed caregiver tax credit would allow family caregivers who hold down a job to claim deductions for expenses such as home health aides, transportation and respite care.

Unlike more general tax credits, caregivers do not have to classify their loved one as a dependent or reside in the same home for the caregiver to be eligible for the tax benefit.

What voters worry about

The survey shows there’s a need to help family caregivers. Nearly two in three worry about their personal financial situation, and 68 percent worry they won’t be able to afford care for a spouse or family member.