Sánchez Leads Bipartisan Effort to Support Caregivers

May 18, 2021
Press Release
The California Congresswoman re-introduces legislation to provide a $5,000 tax credit to those caring for a loved one

WASHINGTON – U.S. Representative Linda Sánchez (D-CA) today re-introduced in the House bipartisan, bicameral legislation that supports family caregivers across the country.

The Credit for Caring Act would provide for those who are taking on added financial responsibilities as family caregivers supporting a loved one. The nonrefundable tax credit of up to $5,000 could be used toward expenses such as transportation, home modifications to accommodate a family member, medication management services, and training or education for the caregiver.

"As the daughter of two parents diagnosed with Alzheimer's disease, I know the responsibility placed on family caregivers in similar situations across the country – and I know the personal sacrifices they make every day,” said Congresswoman Linda T. Sánchez. “Especially during this pandemic, caregivers have been asked to juggle working from home and caring for a loved one, all while managing the financial responsibility associated with caregiving. The Credit for Caring Act will help alleviate some of that burden by providing a tax credit for services such as home care and adult day care. I am proud to work with colleagues on both sides of the aisle to find solutions for so many who need all the help they can get.”

“AARP appreciates Rep. Sánchez’s sponsorship of the Credit for Caring Act and recognition that America’s nearly 48 million family caregivers are the backbone of this country’s care system. Family caregivers provide the equivalent of $470 billion annually in unpaid care to their loved ones, and help save taxpayer dollars by delaying or preventing expensive nursing home care and unnecessary hospital stays. The Credit for Caring Act will help offset some of the nearly $7,000 that family caregivers typically spend out-of-pocket each year on care-related expenses,” said Nancy A. LeaMond, AARP’s Executive Vice President and Chief Advocacy and Engagement Officer.

Senators Michael Bennet (D-CO), Joni Ernst (R-IA), Elizabeth Warren (D-MA), and Shelley Moore Capito (R-WV) are sponsoring the bipartisan legislation in the U.S. Senate.

 

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

Family Caregivers in California:

  • According to AARP, there are 4.7 million family caregivers in California.
  • AARP also found that the unpaid contributions of family caregivers in California are valued at more than $63 billion annually.

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.

You can view full bill text here

 

 

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