Can the Credit for Caring Act Help Me?

The Credit for Caring Act would provide a federal tax credit for eligible working family caregivers.

 Read
Join Helpful now
Get more personalized support for free with Helpful.

Get insurance benefits, legal documents, and medical records in one place

Credit for Caring Act 2024

Helpful Highlights

Family caregiver spend

Families spend an average of $7,200 out of pocket caring for their loved ones (and that average exceeds $8,000 for those caring for persons with dementia), doing everything from making housing payments and utility payments, to making provider payments and assisting with medication costs, to paying for in-home care and running the household (shopping, errands, cleaning, and more), to installing home modifications and providing transportation, and much more.

Most family caregivers also have a part-time or full-time job, and almost half of them have reported negative financial impacts due to caregiving (quitting work, missing work, rearranging work hours, taking on debt, no longer saving).

Credit for Caring Act

On January 31, 2024, a bipartisan group of Senators and House Representatives reintroduced legislation to help qualified working family caregivers with a tax credit.

The Credit for Caring Act has been through several iterations over the past 8 years, and AARP leaders, who have worked with legislators on these various versions now believe the time is finally right for it to become law.

If passed, the Act would provide eligible individual caregivers with up to a $5,000 tax credit, that would cover 30% of qualified expenses incurred above $2,000. Expenses that the loved one pays toward their care do not count; only those incurred by the caregiver.

Family caregivers will need to meticulously document their out-of-pocket expenses above $2,000 to qualify for the credit - essentially a spreadsheet or ledger with attached receipts (and copies of any associated provider orders, when available).

Why is there a good chance it will get passed?

If passed, the law would go into effect for the 2024 tax year.

What can I do to help?

Write to your Senators and Representatives letting them know you support the bill.

Join Helpful now

RESOURCES

AARP - 2021 Caregiving Out-of-Pocket Costs Study

Credit for Caring Act of 2021

Lin-Fisher, B. (2023, February 5). Caregivers spend a whopping $7,200 out of pocket. New bill would provide tax relief. USA Today. Link

Get more support and guidance on insurance benefits, medical records and legal forms.

Helpful brings together your insurance benefits, legal documents, and medical records in one personalized place — so you always know what you have, and never have to search again.

banner

Simplifying Healthcare, Supporting Mental Health

An all-in-one solution to help navigate the complexities of healthcare and support with mental health, for you or your loved one.

sync

Manage All Your Health Info in One Place

Learn More

therapy

In-Network Mental Healthcare

Find a Therapist

legal

Create Legal Documents to Guide Your Care

Learn More

call insurance

Let Us Call Your Insurance So You Don't Have To

Learn More

insurance

Maximize Your Insurance Benefits

Learn More

money

Manage a Health Condition with Confidence

Learn More