AARP Supports Bill to Grant Up to $ 5,000 in Tax Credits to Family Caregivers

In English | WASHINGTON—AARP has endorsed the Credit for Caring Act, a bipartisan bill that would provide up to $ 5,000 in non-refundable federal tax credits for working family caregivers who meet certain requirements. The bill was introduced today in the Senate by Senators Joni Ernst (Republican of Iowa), Michael Bennett (Democrat of Colorado), Shelley Moore Capito (Republican of West Virginia) and Elizabeth Warren (Democrat of Massachusetts), and in the House for Rep. Linda Sánchez (D-California).

Today, 48 million people in the country care for elderly parents, spouses and other loved ones so that they can remain in their homes and communities. These family caregivers provide extensive support, and the financial cost they face can be considerable. AARP research has found that, on average, family caregivers spend nearly $ 7,000 annually out of your own pocket to care for your loved ones, and 45% have reported negative financial impacts, such as debt or stop saving. The Credit for Caring Act could alleviate some of this financial stress by providing a tax credit to help offset out-of-pocket costs for family caregivers.

“AARP is proud to support the bipartisan Credit for Caring Act. We urge Congress to pass this important legislation in 2021, ”said Nancy A. LeaMond, AARP Executive Vice President and Director of Legislative Activism and Engagement. “Family caregivers are the backbone of the long-term care system in this country, and they need help. Many are struggling to balance their caregiving responsibilities with paid employment. And they are using their own money to cover expenses related to the care of their loved ones. By providing a tax credit to eligible family caregivers, Congress can offer these workers much-needed financial relief. “

The Credit for Caring Act would help working family caregivers offset the cost of care-related expenses such as home care aides, adult day care, home modifications, assistive technology, respite care, transportation, or other supports that help your loved ones. The bill would provide a new, non-refundable federal tax credit of up to $ 5,000, giving a 30% credit for qualified expenses paid or incurred by the family caregiver in excess of $ 2,000.

An AARP analysis released in March revealed that increasing support policies for working caregivers could bring benefits to both employers and the broader economy. If family caregivers age 50 and older have access to workplace support, the U.S. Gross Domestic Product could grow by an additional $ 1.7 trillion (5.5%) by 2030.

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About AARP
AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering people age 50 and over to choose how they live as they age. With nearly 38 million members, AARP works to strengthen communities and fight for the issues that matter most to families: health security, financial stability, and personal well-being. AARP also produces the largest circulation publications in the country: AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org (in English), www.aarp.org/espanol (in Spanish) or follow us at @AARP, @AARPenEspanol and @AARPadvocates, @AliadosAdelante on social media.

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