Credit for Caring ActAugust 22, 2023
Credit for Caring Act S. 1670/ H.R. 3321
Family caregivers are often overlooked and underappreciated as a vital key to supporting loved ones and neighbors in their homes. It is estimated that each year family caregivers provide approximately $470 billion in unpaid care. This care prevents what would otherwise most likely result in institutionalization in a hospital, nursing home, or other facility. Family caregivers’ efforts result in their loved ones maintaining their independence at home and saving taxpayers money.
By serving as a family caregiver these people often forego the opportunity to fully participate in the workforce resulting in decreased income, retirement savings, and career development opportunities. Further, studies show family caregivers spend their own money, often dipping into savings, to cover expenses of caregiving such as hiring home care aides and other professionals to care for their loved ones. Annually, on average, caregivers spend $7,242 of their own money for caregiving related expenses.
The Credit for Caring Act would help offset these expenses by providing a tax credit of up to $5,000 for expenses such as respite care, home modifications, hiring home care aides and other caregiving professionals to provide care and services, and assistive technology.