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Davidson News

Tax Credit to Caregivers: Bipartisan Proposal Offers $5,000 – See if You Are Eligible!

A new bipartisan legislation, the Credit for Caring Act, aims to provide financial relief such as tax credit caregivers where there are nearly 50 million in America who support family members.  Introduced by Senators Shelley Capito and Michael Bennet, along with Representatives Mike Carey and Linda Sánchez, the act offers up to $5,000  tax credit to caregivers, covering 30% of qualified expenses exceeding $2,000. Eligible caregivers, earning over $7,500 annually, can utilize the credit for expenses related to long-term care needs of dependents, such as home health aides, respite care, and transportation.

Bipartisan Proposal Offers $5,000 Tax Credit to Caregivers (Photo from KARE 11)

Tax Credit to Caregivers: A Vital Support for Overwhelmed Caregivers

Advocates, including AARP, stress the critical role caregivers play in the long-term care system and the financial strain they endure.

The proposed tax credit to caregivers aims to alleviate some of this burden by offsetting caregiving expenses, providing much-needed support to those who tirelessly care for loved ones.

With over 48 million caregivers in the U.S., this legislation seeks to address the significant contributions and challenges faced by this vital demographic.

READ ALSO: Breaking Down The $79 Billion Tax Cut Package: Boosted Child Tax Credits And Key Business Breaks Unveiled For 16 Million Families

Tax Credit to Caregivers: Urgent Call for Congressional Action

AARP urges Congress to swiftly pass the Credit for Caring Act in 2024, emphasizing the urgency of providing relief to overwhelmed caregivers.

While the bill does not mandate co-residency, expenses must be incurred by the caregiver seeking the tax credit. If enacted, this legislation could significantly ease the financial strain on caregivers, recognizing their invaluable contribution to society.

READ ALSO: Decoding California’s Financial Jigsaw: High Living Costs, Soaring Debt, And Looming Budget Deficits

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