Some of America's 48 million family caregivers would get much-needed financial assistance under the Credit for Caring Act, introduced on May 18 in the U.S. Senate and House of Representatives. The bipartisan bill would provide an up to $5,000 federal tax credit for eligible working family caregivers — which could help defray the nearly $7,000 that many families spend each year in out-of-pocket caring costs.
"America's nearly 48 million family caregivers are the unrecognized backbone of the long-term care system,” said Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer. “Family caregiving can be overwhelming, exhausting and a major financial challenge. That's why AARP is fighting to make life a little bit easier for unpaid family caregivers and ease their financial concerns. We are delighted to support the bipartisan Credit for Caring Act, which will help put a little money back in the pockets of caregivers who spend in the service to their loved ones."
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Family caregivers are providing $470 billion in unpaid care each year — doing everything from helping prepare meals and paying bills to assisting with medication and general activities of daily living — most often so that their parents, spouses, and other loved ones can continue to live independently in their homes and communities. A whopping 61 percent of these caregivers do all of this while also holding down a job.
The bill's new, nonrefundable federal tax credit would give eligible family caregivers who work a 30 percent credit for qualified expenses they paid or incurred above $2,000. The credit could help offset the costs of services like home care aides, adult day care and respite care as well as home modifications like ramps and smart-home technology that make caregiving at home safer and easier.
The bill is sponsored in the Senate by Sens. Joni Ernst (R-Iowa), Michael Bennet (D-Colo.), Shelley Moore Capito (R-W.Va.) and Elizabeth Warren (D-Mass.), and in the House by Rep. Linda Sánchez (D-Calif.).
