WASHINGTON, D.C. – Today, U.S. Senator Jacky Rosen (D-NV), founder and co-chair of the Senate Comprehensive Care Caucus and a member of both the Senate Committee on Health, Education, Labor and Pensions (HELP) and the Senate Special Committee on Aging, announced her co-sponsorship of the Credit for Caring Act. This bipartisan legislation would provide working family caregivers with a tax credit of up to $5,000 to assist with out-of-pocket expenses related to caregiving.
According to studies by AARP approximately 48 million individuals provide unpaid care to an adult family member or friend, nearly eight in 10 caregivers report routine out-of-pocket expenses related to looking after their loved ones, and on average, family caregivers spend approximately 26% of their income on caregiving activities.
“Family caregivers play a critically important role in ensuring the wellbeing of their loved ones but often face difficult challenges and high financial costs directly related to the care they provide. Congress must do more to support these health care heroes in their work,” said Senator Rosen. “This important bipartisan legislation would deliver a tax cut of up to $5,000 to many families in Nevada and across our nation to help them offset the cost of caring-related needs and purchases.”
“AARP thanks Senator Rosen for cosponsoring the Credit for Caring Act and recognizing America’s nearly 48 million family caregivers are the backbone of this country’s care system,” said Maria Moore, AARP Nevada State Director. “About 330,000 family caregivers in Nevada provide the equivalent of $3.9 billion annually in unpaid care to their loved ones, and help save taxpayer dollars by delaying or preventing expensive nursing home care. The Credit for Caring Act will help offset some of the more than $7,200 that family caregivers typically spend out-of-pocket each year on care-related expenses.”
BACKGROUND: The Credit for Caring Act would:
- Create up to a $5,000 nonrefundable tax credit, adjusted to inflation, for family caregivers
- 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. The tax credit is phased out when income exceeds $150,000 for joint filers or $75,000 for individual filers.