U.S. Rep. Tom Reed (R-NY) announced bipartisan legislation on Thursday that would provide a tax credit to help family caregivers cover expenses.
Cosponsoring the Credit for Caring Act, H.R. 4708, with Reed is U.S. Rep. Linda Sanchez (D-CA). The bill aims to relieve financial burdens of those who provide long-term home care to a family member.
“We care about those who become caregivers for their aging parents, grandparents or other relatives,” Reed said. “These families are making enormous sacrifices and are struggling to make ends meet. The expense of providing personal, at-home care can add up quickly. It’s only fair that we support our caregivers.”
Under the Credit for Caring Act, qualified taxpayers would receive a credit for 30 percent of caregiving expenses, up to $3,000 per year.
“It’s a win-win,” Reed said. “Families will stay together, and those in need of assistance have access to better care.”
In order to qualify for the tax credit, caregivers would have to earn at least $7,500 per year. The credit would phase out for single tax filers with incomes greater than $75,000 and for joint tax filers with incomes greater than $150,000.
“This is more than just another tax credit,” Sanchez said. “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.”
The AARP and the American Heart Association are among groups that support the bill.
“Forty million family caregivers of adults provide unpaid care valued at about $470 billion annually,” Joyce A. Rogers, the senior vice president of government affairs at AARP, said. “Family caregivers help their loved ones live independently in their homes and communities, saving taxpayer dollars by helping to delay or prevent more costly institutional care and helping to prevent unnecessary hospital readmissions. We urge support of this important legislation.”