Family caregivers would benefit from a new tax credit to help cover related expenses under legislation recently reintroduced by U.S. Rep. Tom Reed (R-NY) and U.S. Sens. Shelley Moore Capito (R-WV) and Joni Ernst (R-IA).
The bicameral, bipartisan Credit for Caring Act would provide a nonrefundable tax credit of up to $3,000 to help family caregivers cover out-of-pocket expenses associated with caring for their loved ones. Expenses like transportation, home modifications like a wheelchair ramp, medication management, and training and education would qualify for the tax credit.
“We all care about ensuring our aging loved ones get the assistance they deserve,” Reed said. “We must work to find an equitable approach to ease the burden on family caregivers, which is accomplished with this legislation.”
Under the bill, caregivers earning an income of more than $7,500 would be eligible for the tax credit. It would be phased out for single filers earning more than $75,000 and joint filers earning more than $150,000.
“Having recently shared in the caregiving of my own parents, I understand the difficulties that caregivers face and the significant costs involved,” Capito said. “The Credit for Caring Act is exactly the type of solution we need to help ease the financial burden caregivers face, and I am proud to join my colleagues to support this important measure.”
A health care practitioner would have to certify that an individual receiving care is actually in need of long-term care for at least 180 days in order to qualify for the tax credit under the bill.
“Family caregivers play a critical role in supporting aging parents or special needs individuals,” Ernst said. “There are more than 40 million family caregivers across the country, and 317,000 in Iowa. I am grateful for the bipartisan support from my colleagues on this important legislation to better accommodate family caregivers’ selfless actions.”
Nancy LeaMond, the chief advocacy and engagement officer at AARP, said the organization was pleased to endorse the Credit for Caring Act, and she applauded the bipartisan group of lawmakers supporting the bill.
“Across the country, 40 million Americans are taking care of loved ones so they can stay in their homes and communities, delaying or preventing more expensive institutional care or hospital stays,” LeaMond said. “Last year, these family caregivers spent an average of 20 percent of their income on care-related expenses. That translates to $6,954 in 2016, and some pay much more.”
She added, “The Credit for Caring Act would give some much-needed financial relief to eligible family caregivers.”