Tax Credit for Family Caregivers: Financial Support for Those Caring for Loved Ones.
This act introduces a new tax credit for individuals who provide care for family members with long-term care needs. It aims to alleviate the financial burden associated with caregiving by helping to cover a portion of support and service expenses. This allows citizens to receive a refund for some of the costs related to caring for their loved ones.
Key points
Ability to deduct up to 30% of qualified care expenses exceeding $2,000, with a maximum credit of $5,000 per year.
The credit is available to caregivers earning over $7,500 annually who care for a spouse or other close relative with certified long-term care needs.
Qualified expenses include human assistance, assistive technologies, home modifications, transportation, as well as respite care costs and lost wages due to caregiving.
The credit amount may be reduced for higher-income individuals (above $75,000 for single filers and $150,000 for joint filers).
Requires inclusion of the caregiver's and care recipient's taxpayer identification numbers, and the certifying healthcare practitioner's identification number on the tax return.
Expired
Additional Information
Print number: 117_HR_3321
Sponsor: Rep. Sánchez, Linda T. [D-CA-38]
Process start date: 2021-05-18