AHIA Call to Action for The Credit for Care Act, H.R. 4708 and S. 2759

Posted on in HME Government Issues

New federal legislation has been brought to light and is called the Credit for Caring Act. Versions in both the House and the Senate are in the works, and if passed, would create a federal, non-refundable tax credit of up to $3,000 for family caregivers who work while also financially helping their parents, spouses, children or other loved ones with disabilities. The bill (H.R. 4708/S. 2759) was introduced by reps. Tom Reed (R-N.Y.) and Linda Sánchez (D-Calif.) and sens. Joni Ernst (R-Iowa) and Michael Bennet (D-Colo.). AHIA is in support of the Credit for Caring Act as have several other national organizations.

Statistics show:

  • Every day, nearly 40 million Americans care for adult loved ones, assisting them to live independently in their own homes and neighborhood communities as part of the Aging in Place movement, helping to keep these individuals out of costly nursing homes and saving taxpayer dollars.
  • The unpaid care these family caregivers provide has been estimated at about $450 billion a year, much more than total Medicaid spending in recent years.
  • Nearly 3.5 million family caregivers provide care to a child under age 18 because of a medical, behavioral or other condition or disability.
  • It is estimated that over 6 million family caregivers assist both adults and children. Family caregivers help with bathing and dressing, preparing meals, managing medications, driving to appointments, keeping up with finances and more.

In addition to easing some of the added financial costs of family caregivers, this tax credit could assist in the following ways:

  • Provide relief so family caregivers can take a hard-earned break.
  • Help working family caregivers pay for home care or other support so they can continue working while also fulfilling their family caregiving responsibilities.

The Credit for Caring Act legislation was developed to help address the financial challenges of family caregiving and help these caregivers to remain in the workforce and be more financially secure. It would give eligible family caregivers the opportunity to receive a tax credit for 30 percent of the qualified expenses above $2,000 paid to help a loved one, up to a maximum credit amount of $3,000.

Qualification under the legislation calls for family caregivers to meet the following criteria:

  • Are spouses, adult children, parents or other relationships named under the “dependent” definition.
  • Help a loved one, of any age, who meets certain functional or cognitive limitations or other requirements, as certified by a licensed health care practitioner.
  • May or may not live with the loved one.
  • Have more than $7,500 in earned income for the taxable year.
  • Can document qualified expenses.

The bill also includes important provisions to do the following:

  • Index certain dollar amounts and income levels to inflation.
  • Coordinate with other existing tax provisions to prevent “double-dipping.”
  • Phase out at higher income levels.

AHIA sees this legislation as a top priority. Please show your support and contact your elected officials today. Respectfully urge them to support H.R. 4708 and S. 2759.