Bipartisan legislation providing up to a $5000 nonrefundable federal tax credit for eligible working family caregivers is now winding its way through Congress.
The Senate and House both introduced the Credit for Caring Act earlier this week. Sponsors are Sen. Joni Ernst (R-IA), Sen. Shelley Moore Capito (R-WV), Sen. Elizabeth Warren (D-MA), Sen. Michael Bennet (D-CO) and Rep. Linda Sanchez (D-CA).
Home care providers are hopeful that the legislation will pass, thanks to the bipartisan congressional support and backing from the president.
“Let’s make this the year that we get that thing passed,” said Vicki Hoak, executive director of the Home Care Association of America, during a webinar Thursday. She added, “Home care is bipartisan, folks.”
AARP also endorsed the bill, which could impact about 48 million Americans who care for aging parents, spouses and other adult loved ones who remain in their homes and communities.
“Family caregivers are the backbone of the long-term care system in this country, and they need help. Many are struggling to balance their care responsibilities with paid employment,” said Nancy A. Leamond, AARP executive vice chairman and chief advocacy and engagement officer. “And, they’re dipping into their own pockets to cover the related expenses for their loved ones. By providing a tax credit to eligible family caregivers, Congress can offer some much-needed financial relief to these hard-working Americans.”
AARP estimates family caregivers provide up to $470 billion in unpaid care annually, providing meals, paying bills, assisting with medication and other general activities of daily living.