U.S. Sens. Joni Ernst (R-IA) and Kelly Ayotte (R-NH) cosponsored a bipartisan bill on Thursday that would extend a tax credit for working family caregivers to cover qualified expenses.
The Credit for Caring Act would provide a non-refundable tax credit of up to $3,000 for those who care for aging parents or grandparents or family members with long-term illnesses or disabilities.
“Family caregivers play an invaluable role in ensuring their loved ones have access to the support they need, from the comfort of their own home,” Ernst said. “This role is not without challenges however, which is why the Credit for Caring Act is essential. As Iowans take on the added financial responsibilities of long-term care for their family members, our bipartisan tax credit proposal eases the difficulties working caregivers face, while providing their loved ones with quality care.”
Under the bill, a tax credit would be available to caregivers who work part- or full-time jobs outside the home to help cover expenses like travel, home modifications to accommodate special needs and medication management services.
“Family caregivers in New Hampshire and across the country help their loved ones who require caregiving assistance to stay at home, where they often prefer to be,” Ayotte said. “As a co-founder of the Assisting Caregivers Today Caucus, I’m pleased to support this important legislation that will help ease the financial burden on caregivers and better support those who give so selflessly to their loved ones.”
The bill would make the tax credit available to family caregivers who earn more than $7,500 in outside income while providing 180 days of consecutive care to a loved one. The credit would be phased out when individual income exceeds $75,000, or when joint income exceeds $150,000.
U.S. Sen. Elizabeth Warren (D-MA), a cosponsor of the bill, said that more than 40 million Americans provide unpaid care to a loved one with a long-term illness or medical condition.
“This modest tax credit will make life a little easier for the hardworking Americans who do the often-unacknowledged but powerfully important work of taking care of their loved ones in need,” Warren said.
U.S. Sen. Michael Bennet (D-CO) added that family caregivers provide billions of hours of care that enables their loved ones to live independently.
“And as the population continues to age, the need for family care will only increase, adding to the physical, emotional and financial stress on caregivers,” Bennet said. “This bipartisan tax credit will help family caregivers afford the costs of caring for a loved one.”