$5,000 Federal Tax Credit to Reduce the Financial Burden of Care
This bill allows an eligible caregiver a tax credit of up to $5,000 for 30% of the cost of long-term care expenses that exceed $2,000 in a taxable year. Family caregivers deserve a tax credit modeled after the child tax credit.
Currently, 23 states offer caregiver tax credits, each with its own approach. And on a national level, the Credit for Caring Act is poised for passage, bringing financial relief to caregivers across the country. Learn more about how tax credits can benefit you and your care recipient, whether you’re in one of the active states or hoping for national support.
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According to the AARP Valuing the Invaluable report, caregivers provide over $600 billion in free care. This means 38 million unpaid family and friends offer services, on average, 18 hours per week. Just like parents, family caregivers sacrifice time, energy, and money to help others live and flourish in our country.
Families are raiding their family budget to pay for care. Caregivers are raiding 401K retirement savings accounts to make-up family budget shortfall. If not retirement savings, families report taking out second mortgages to pay for care. Working caregivers juggle work, family, and care putting their own health at risk sacrificing personal care, sleep, exercise, mental health, and a proper diet. In fact, family caregivers surrender their own future to care for others.
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