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New Tax Credit for Working Family Caregivers: Up to $5,000 Annually

This bill introduces a new, nonrefundable tax credit designed to provide financial relief to working individuals caring for family members with long-term care needs. Eligible citizens who incur qualified care expenses can claim 30% of those costs (exceeding $2,000), up to a maximum of $5,000 annually. This measure aims to alleviate the significant financial burdens associated with providing essential care at home.
Key points
The new tax credit covers 30% of qualified care expenses exceeding $2,000, with an annual cap of $5,000 (subject to inflation adjustments).
Eligibility requires the caregiver to be working (earned income over $7,500) and caring for a spouse or relative certified by a doctor as having long-term care needs for at least 180 consecutive days.
Qualified expenses are broad, including human assistance, assistive technologies, home modifications, transportation costs, respite care, and verified lost wages due to unpaid time off for caregiving.
The credit phases out for higher earners, starting at $150,000 for joint filers and $75,000 for all other filers.
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Additional Information
Print number: 118_S_3702
Sponsor: Sen. Bennet, Michael F. [D-CO]
Process start date: 2024-01-31
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Credit for Caring Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_3702.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-01-31.

What are the main provisions?

Key points include:

  • The new tax credit covers 30% of qualified care expenses exceeding $2,000, with an annual cap of $5,000 (subject to inflation adjustments).
  • Eligibility requires the caregiver to be working (earned income over $7,500) and caring for a spouse or relative certified by a doctor as having long-term care needs for at least 180 consecutive days.
  • Qualified expenses are broad, including human assistance, assistive technologies, home modifications, transportation costs, respite care, and verified lost wages due to unpaid time off for caregiving.
  • The credit phases out for higher earners, starting at $150,000 for joint filers and $75,000 for all other filers.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Bennet, Michael F. [D-CO].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Family Benefits