Collins, Bipartisan Group Introduce Bill to Provide Financial Relief to Caregivers
Washington, D.C. — U.S. Senators Susan Collins, Shelley Moore Capito (R-WV), Elizabeth Warren (D-MA), Lisa Murkowski (R-AK), and Maggie Hassan (D-NH), and Michael Bennet (D-CO) introduced the Credit for Caring Act. This bipartisan legislation would provide up to a $5,000 federal tax credit for eligible and working family caregivers.
“Millions of Americans devote enormous time and attention and make many personal and financial sacrifices to ensure that their loved ones have the high-quality care they need day in and day out. These individuals know all too well the compassion, commitment, and endurance that it takes to be a caregiver and help loved ones remain in the comfort and safety of their own homes,” said Senator Collins. “This legislation would support family caregivers by easing the financial burdens that many face.”
“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 Sanchez for the introduction of the Credit for Caring Act,” said Nancy LeaMond, Executive Vice President and Chief Advocacy & Engagement Officer of AARP.
Specifically, the Credit for Caring Act 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.
Under the bill, qualifying care recipients must have been certified by a health care practitioner to be in need of long-term care for at least 180 consecutive days. Eligibility is limited to a caregiver of a qualified care recipient who must pay for caregiving expenses and has earned income in excess of $7,500. Credit is phased out when income exceeds $150,000 for joint filers or $75,000 for individual filers.
More than 48 million Americans are caregivers, including 166,000 in Maine. Maine caregivers provide approximately $2.9 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.
###
