Parents and Caregivers Both Deserve a Tax Credit
The numbers are staggering. Caregivers provide about four hundred and seventy-seven billion dollars annually in unpaid care to their loved ones. Care is provided for people of all ages whether it is a terminally ill child, a parent, or other vulnerable family members. Today’s caregivers take on the physical, emotional, and financial challenges which greatly increased during the pandemic. Caregiving can be costly both in terms of out-of-pocket expenses paid to assist their loved ones and potential income and retirement savings foregone. The support provided by family caregivers also helps save USA taxpayer dollars by assisting in delaying or preventing expensive nursing home care and unnecessary hospital stays. On average, AARP reports caregivers to spend seven thousand dollars from the family budget.
Looking to Future Generations is No longer the Answer
Passing this tax code change is urgent as the size and composition of the American family continue to change. This issue. impacts every generation as children are caring for parents in record numbers. In fact, one-quarter of all caregivers are Millennials. How can we justify the burden we are heaping on our youngest generations?
We are at the tip of the iceberg here. With each passing decade, we have more family caregivers who have spent their own nest egg on caring for the last resulting in an even more impoverished generation that now relies on younger families to support their retirement. This is unsustainable.