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Tax Credit for Elder Care: Support for Families

This new law introduces a tax credit for individuals incurring eldercare expenses for their family members. Citizens can now recover a portion of costs related to medical care, adult day services, or home modifications for seniors, potentially easing their financial burden.
Key points
Allows a tax credit of up to 20% of eldercare expenses, with a maximum of $6,000 per year.
Eligible expenses include medical care, adult day services, personal care, assistive technologies, and home modifications.
To qualify, the elder must be at least 65 years old and require assistance with daily living activities.
The credit amount decreases for taxpayers with adjusted gross incomes exceeding $120,000 annually.
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Additional Information
Americans Giving Care to Elders (AGE) Act of 2021
Print number: S 234
Sponsor: Sen. Klobuchar, Amy [D-MN]
Process start date: 2021-02-04