Tax Credit for Household and Elder Care Services
This new law introduces a tax credit for working individuals who incur expenses for household or elder care services. It aims to help cover care costs when such services are necessary for employment. This can allow citizens to recover some of the money spent on supporting loved ones or maintaining their home, potentially improving their financial situation.
Key points
You may receive a tax credit for expenses related to caring for an elderly person (over 50) or another qualifying individual, if these services are necessary for your employment.
The credit covers household services and care expenses, including respite and hospice care, with limits of up to $3,000 for one qualifying individual and up to $6,000 for two or more.
The credit amount depends on your income; higher incomes result in a lower percentage of the credit, but not less than 20% of the expenses.
To claim the credit, you must provide identifying information for the service provider and the qualifying individual, and married couples must file a joint tax return.
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