Bipartisan, Bicameral Legislation Would Provide a Tax Credit of up to $5,000 to Americans Caring for a Loved One
Photos and Video from Press Conference Available HERE
Washington, D.C. — U.S. Senators Michael Bennet (D-Colo.), Shelley Moore Capito (R-W.Va.), Elizabeth Warren (D-Mass.), Susan Collins (R-Maine), Maggie Hassan (D-N.H.), and Lisa Murkowski (R-Alaska) alongside U.S. Representatives Linda Sánchez (D-Calif.) and Mike Carey (R-Ohio) reintroduced the Credit for Caring Act. This bill would provide up to a $5,000 federal tax credit for eligible and working family caregivers.
“Family caregivers play a critical role in the lives of their loved ones, often at a significant financial cost to themselves. They have to balance jobs and family responsibilities, and still make ends meet at the end of the month,” said Bennet. “Congress should make things a little easier for them. Our bipartisan bill will help ease the financial burden that many caregivers face in Colorado and across the country, and I’m grateful for the support of my colleagues in both chambers of Congress.”
“As someone who helped care for both of my parents as they battled Alzheimer’s at the end of their lives, I understand the emotional and physical toll it can take on individuals and families,” said Capito. “The Credit for Caring Act is a great tool to help to ease the financial burden caregivers face and I am proud to join with my colleagues today in reintroducing this bill. By passing this bill, we can help caregivers focus more on their loved ones and less on how much it will cost them.”
“As the daughter of two parents diagnosed with Alzheimer’s disease, I know the sacrifices and work family caregivers make every day,” said Sánchez. “The Credit for Caring Act will alleviate some of the burden by providing a tax credit for critical services including home care and adult day care. I am proud to help lead this effort and I appreciate the chance to work in a bipartisan way to ease this great burden on many families across the country.”
“Caring for a sick family member is a major sacrifice that often can be emotionally and financially taxing,” said Carey. “Our bipartisan bill seeks to ease the financial burden on individuals who selflessly decided to act as a caregiver for a sick loved one.”
More than 48 million Americans are caregivers – this includes 600,000 people in Colorado, 250,000 in West Virginia, 4.4 million in California, and 1.4 million in Ohio. Caregivers provide approximately $600 billion in unpaid care each year so that their parents, spouses, and other loved ones can continue to live independently.
The Credit for Caring Act would help cover the over $7,200 that many families spend yearly on out-of-pocket caring costs, such as home care aides, adult day care, respite care, transportation, and other supports. Specifically, the bill would:
- Create up to a $5,000 nonrefundable tax credit adjusted to inflation for family caregivers; and
- Apply to incurred family caregiving expenses greater than $2,000.
"Family caregivers are the backbone of our country’s long-term care system, but they are overwhelmed, exhausted, and financially strained. Our caregivers desperately need support. That is why AARP is proud to work closely with Senators Bennet, Capito, Warren, Collins, Hassan, and Murkowski and Representatives Carey and Sánchez for the introduction of the Credit for Caring Act," said Nancy LeaMond, Executive Vice President and Chief Advocacy & Engagement Officer, AARP. "We urge Congress to pass this legislation in 2024 to help provide relief and put money back in the pockets of caregivers.”
“I’m grateful for this legislation that people can get on board with - not as partisan, but simply about goodness and taking care of people who need assistance, by people who love them and who will give their all for them -- no matter how much it costs,” said Jay Montgomery Brown, former family caregiver to his wife, mother, mother-in-law, and partner.
The text of the bill is available HERE.