Critter Corner: Lawmakers Introduce Bill to Provide Tax Credit for Caregiving Expenses

Dear Baxter,

I read something about a Bill that was just introduced to provide tax credit for caregiving. I am a part-time caregiver for my father and work 20 hours a week at my job. Iwould be interested in learning more about this, if you can provide any details.

Thanks!

Bill Foruss

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Dear Bill,​

Yes, you are correct. A pair of lawmakers (Rep. Linda Sánchez, D-Calif. and Rep. Tom Reed, R-N.Y.), who are on the tax-writing House Ways and Means Committee, recently introduced bipartisan legislation to provide a tax credit for caregiving expenses.

The Credit for Caring Act (H.R. 4708) provides a tax credit to working family members equal to 30 percent of a caregiver’s expenses greater than $2,000. The bill aims to reward working taxpayers and encourage continued participation in the workforce while providing care to a loved one.

“This is more than just another tax credit,” Sánchez said in a statement Monday. “This is about how we can help older adults and people with disabilities live independently in their own homes and communities. This legislation will help alleviate some the burden on family caregivers by providing a tax credit for services such as home care and adult day care. I am proud to work with Rep. Tom Reed to find a bipartisan solution to help families across this country care for their loved ones.”

To be eligible:

• Caregivers would need to earn at least $7,500 of earned income (approximately halftime at minimum wage) to be eligible for the credit. The amount of the credit would be capped at $3,000 and phase out for married taxpayers with incomes over $150,000 ($75,000 for single or taxpayers filing separately).

• Caregivers would need to be caring for a family member who is the taxpayer’s spouse, parent, grandparent, sibling, child, niece or nephew, brother or sister-in-law, father, or mother-in-law.

• The family member would need to be certified by a health care professional as requiring long-term care needs for at least six months and unable to perform at least two activities of daily living (dressing, eating, bathing, walking, going to the bathroom, and grooming/personal hygiene).

• Eligible expenses would include goods, services and support purchased by the caregiver to assist with activities of daily living.  They could include purchases made on behalf of the care recipient for groceries, incontinence supplies, a remote health monitoring device, modifications to a home, transportation to a doctor’s office, hiring someone to look after an elderly parent, or for other related purposes.

We will provide more details about the Credit for Caring Act as they become available.

Thanks for your question!

Baxte