Tax Credit Proposed For Disability Caregivers
Parents and others who provide care for people with disabilities could be eligible for a tax credit under a new proposal.
A bill introduced in the U.S. House of Representatives this week would allow family members who care for older people and those with disabilities to receive up to $3,000 in tax savings annually.
“This is more than just another tax credit,” said U.S. Rep. Linda Sánchez, D-Calif., who introduced the legislation along with U.S. Rep. Tom Reed, R-N.Y. “This is about how we can help older adults and people with disabilities live independently in their own homes and communities.”
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To be eligible, caregivers would have to be working and earning at least $7,500 per year.
The tax credit would offset expenses for everything from groceries to home modifications, transportation and hired help to care for individuals with long-term needs who can’t perform at least two activities of daily living like eating, walking, dressing or grooming.
Family members could qualify for providing care to a spouse, parent, grandparent, sibling, child, niece, nephew, brother or sister-in-law, or father or mother-in-law under the proposal known as the Credit for Caring Act.
“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,” Reed said. “It’s a win-win. Families will stay together and those in need of assistance have access to better care.”