Reps. Linda Sanchez (D-CA) and Tom Reed (R-N.Y.) introduced new legislation March 7 that would create a tax credit for people caring for people with disabilities and the elderly.
“These families are making enormous sacrifices and oftentimes struggle to make ends meet,” Rep. Reed said in a news release. ” The expense of providing personal, at-home care can add up quickly….Families will stay together and those in need of assistance have access to better care.”
Under the Credit for Caring Act, eligible individuals and families would be able to offset the expenses for goods and services related to their roles as caregivers, such as groceries, home modifications, and health care monitoring devices. The tax credit would be available to caregivers earning at least $7,500 per year and would kick in once their caregiving expenses rise above $2,000 for the year.
Above that threshold, caregivers would be able to offset 30 percent of their expenses, up to a maximum tax credit of $3,000. The tax credit would phase out for married taxpayers earning an annual income above $150,000.
“The bipartisan Credit for Caring Act sends a clear message that support for family caregivers is not bound by political ideologies,” said Nancy LeaMond, chief advocacy and engagement officer at AARP, said in a news release. “This legislation will help ease the financial burden faced by many family caregivers today.”
A recent AARP survey found that more than 40 percent of family caregivers spend more than $5,000 a year on caregiving expenses.
An AARP tips sheet of other potential tax benefits for caregivers can be read here.