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Tax Credit for Family Caregivers: Financial Support for Working Individuals

This new law introduces a tax credit for individuals who provide care for family members with long-term care needs. It aims to ease the financial burden of caregiving by helping to cover costs such as in-home assistance, medical equipment, or transportation. This allows working caregivers to recover a portion of their expenses, improving their financial situation.
Key points
Ability to deduct up to 30% of qualified caregiving expenses exceeding $2,000, with a maximum credit of $5,000 per year.
The credit applies to expenses for caring for a spouse or close relative who requires long-term care, certified by a healthcare practitioner for at least 180 days.
Qualified expenses cover a wide range of services and products, including personal assistance, assistive technologies, home modifications, and even lost wages from unpaid time off for caregiving.
The credit is available for individuals with earned income over $7,500 annually, and its amount decreases for higher earners (above $75,000 for single filers and $150,000 for joint filers).
The changes take effect for tax years beginning after December 31, 2024.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_2036
Sponsor: Rep. Carey, Mike [R-OH-15]
Process start date: 2025-03-11
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Credit for Caring Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_2036.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-03-11.

What are the main provisions?

Key points include:

  • Ability to deduct up to 30% of qualified caregiving expenses exceeding $2,000, with a maximum credit of $5,000 per year.
  • The credit applies to expenses for caring for a spouse or close relative who requires long-term care, certified by a healthcare practitioner for at least 180 days.
  • Qualified expenses cover a wide range of services and products, including personal assistance, assistive technologies, home modifications, and even lost wages from unpaid time off for caregiving.
  • The credit is available for individuals with earned income over $7,500 annually, and its amount decreases for higher earners (above $75,000 for single filers and $150,000 for joint filers).
  • The changes take effect for tax years beginning after December 31, 2024.
What is the specific legal status?

The current status is Introduced.

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 Rep. Carey, Mike [R-OH-15].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Taxes Family Health