AARP Endorses Bill to Provide Up to $5,000 Tax Credit for Family Caregivers
WASHINGTON, May 18, 2021 /PRNewswire
AARP has endorsed the Credit for Caring Act, bipartisan legislation that would provide up to a $5,000 nonrefundable federal tax credit for eligible working family caregivers. The bill was introduced today in the Senate by Senators Joni Ernst (R-IA), Michael Bennet (D-CO), Shelley Moore Capito (R-WV), and Elizabeth Warren (D-MA) and in the House by Representative Linda Sánchez (D-CA).
Currently, 48 million Americans care for aging parents, spouses, and other adult loved ones so they can remain in their homes and communities. These family caregivers provide wide-ranging support, and the financial toll they face can be substantial. AARP research has found that, on average, family caregivers spend nearly $7,000 out of their own pockets annually to care for their loved ones, and 45% have reported negative financial impacts such as taking on debt or stopping 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 endorse 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 Chief Advocacy & Engagement Officer. “Family caregivers are the backbone of the long-term care system in this country, and they need help. Many are struggling to balance their care responsibilities with paid employment. And, they’re dipping into their own pockets to cover care-related expenses for their loved ones. By providing a tax credit to eligible family caregivers, Congress can offer some much-needed financial relief to these hard-working Americans.”
The Credit for Caring Act would help working family caregivers offset the cost of caregiving expenses such as home care aides, adult day care, home modifications, assistive technology, respite care, transportation, or other supports that help their loved ones. The bill would provide a new, non-refundable federal tax credit of up to $5,000, giving a credit of 30% of qualified expenses paid or incurred by the family caregiver above $2,000.
An AARP analysis released in March found that increasing supportive policies for working caregivers could provide benefits to both employers and the broader economy. If family caregivers age 50+ have access to support in the workplace, U.S. Gross Domestic Product could grow by an additional $1.7 trillion (5.5%) in 2030.
AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering people 50 and older to choose how they live as they age. With a nationwide presence and nearly 38 million members, AARP strengthens communities and advocates for what matters most to families: health security, financial stability and personal fulfillment. AARP also produces the nation’s largest circulation publications: AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org, www.aarp.org/espanol or follow @AARP, @AARPenEspanol and @AARPadvocates, @AliadosAdelante on social media.