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Tax Credit for Household and Elder Care Services

A new bill proposes a tax credit for individuals who incur expenses for household and elder care services to enable them to work. This aims to provide financial relief to citizens balancing employment with caregiving responsibilities, reducing their tax burden.
Key points
Allows a tax credit of up to 35% for expenses related to household and elder care services, if necessary for gainful employment.
The maximum amount of expenses eligible for the credit is $3,000 for one qualifying individual and $6,000 for two or more.
The credit applies to care for individuals aged 50 or older who are close relatives or meet criteria for a dependent unable to care for themselves.
Identifying information for the service provider and the qualifying individual must be provided to claim the credit.
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Additional Information
To amend the Internal Revenue Code of 1986 to provide a tax credit for expenses for household and elder care services necessary for gainful employment.
Print number: HR 3707
Sponsor: Rep. Lee, Barbara [D-CA-12]
Process start date: 2023-05-25