Tax Credit for Family Caregivers: Financial Support for Caregiving.
This act introduces a new tax credit for individuals who provide care for family members with long-term care needs. It aims to help cover a portion of care-related expenses, such as assistance, equipment, or transportation costs, and to compensate for lost wages. This can reduce the financial burden on citizens caring for their loved ones.
Key points
Ability to claim up to $5,000 annually as a tax credit for qualified caregiving expenses.
The credit applies to individuals earning over $7,500 annually and incurring care expenses exceeding $2,000.
The care recipient must be certified by a licensed health care practitioner as needing long-term care for at least 180 consecutive days.
Qualified expenses include human assistance, assistive technologies, home modifications, transportation, and even the caregiver's lost wages.
The credit amount will be gradually 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 identification numbers on the tax return.
Expired
Additional Information
Print number: 117_S_1670
Sponsor: Sen. Ernst, Joni [R-IA]
Process start date: 2021-05-18