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Congresswoman Linda Sanchez

Representing the 38th District of CA

Reps. Linda Sánchez and Tom Reed Introduce the Credit for Caring Act

March 7, 2016
Press Release

Washington, DC- Representative Linda Sánchez (CA-38), Chairwoman of the Congressional Hispanic Caucus and a member of the Ways and Means Committee, along with Rep. Tom Reed (NY-27), also a member of the Ways and Means Committee, today announced the introduction of HR 4708: the Credit for Caring Act. The bipartisan bill would provide a tax credit for care giving expenses.

“This is more than just another tax credit,” said Rep. Linda Sánchez. “This is about how we can help older adults and people with disabilities live independently in their own homes and communities. This legislation will help alleviate some the burden on family caregivers by providing a tax credit for services such as home care and adult day care. I am proud to work with Rep. Tom Reed to find a bipartisan solution to help families across this country care for their loved ones.”

“We care about those who become caregivers for their aging parents, grandparents or other relatives,” Rep. Tom Reed said. “These families are making enormous sacrifices and oftentimes struggle to make ends meet. The expense of providing personal, at-home care can add up quickly.  It’s only fair that we support our caregivers, and I’m proud to work with Rep. Linda Sanchez on legislation that does just that. It’s a win-win. Families will stay together and those in need of assistance have access to better care.”

Background on H.R. 4708: the Credit for Caring Act

As the Baby Boomer generation ages, a growing number of Americans will require assistance with daily tasks -- such as eating, dressing, bathing, and transportation -- as a result of physical limitations or cognitive impairments. The availability of such paid assistance is limited and often unaffordable. Most Americans rely on family and friends, known as family caregivers, to provide these services, and to assist in arranging and coordinating care.

The Credit for Caring provides a credit to working family members equal to 30% of a caregiver’s expenses greater than $2,000.  The credit rewards working taxpayers and is intended to encourage continued participation in the workforce while providing care to a loved one.  The credit

Caregivers must earn at least $7,500 of earned income (approximately half time at minimum wage) to be eligible for the credit.  The amount of the credit is capped at $3,000 and phases out for married taxpayers with incomes over $150,000 ($75,000 for single or taxpayers filing separately).

Eligible Care Recipient

  • A family member who the taxpayer’s spouse, parent, grandparent, sibling, child, niece or nephew, brother or sister-in-law, or father or mother-in-law
  • Certified by a health care professional as requiring long-term care needs for at least 6 months and unable to perform at least 2 activities of daily living (dressing, eating, bathing, walking, going to the bathroom, and grooming/personal hygiene)

Qualified Expenses

  • Includes goods, services and support purchased by the caregiver to assist with activities of daily living. 
  • For example, these expenses include purchases made on behalf of the care recipient for: groceries, incontinence supplies, a remote health monitoring device, modifications to a home, transportation to a doctor’s office, or hiring someone to look after an elderly parent.