Caregiver Tax Credit: Caring for MI Family Tax Credit Proposal
Limited Federal Programs and State Initiatives
To help those who are taking care of elderly or disabled family members, Michigan Governor Gretchen Whitmer has proposed the Caring for MI Family Tax Credit, a $5,000 tax credit. This project fits nicely with the growing trend of government assistance for families taking on caring duties. The American ethos is strongly in favor of families taking care of family members instead of the state or other institutions, especially when it comes to adult children looking after ageing parents.
Few federal programs address the financial challenges careers endure, despite the high costs of providing care. States are responding by enacting their own laws, such as paid time off and tax credit programs. Six states already provide tax credits to help defray the costs of providing care, which can be used to pay for things like skilled careers, assistive technology, and home improvements.
Whitmer’s proposal in Michigan, which provides funding for counselling, transportation, nursing care, or respite services, is notable for its generosity in comparison to other states. With the goal of delaying nursing facility transitions, these programs hope to lower Medicaid and individual out-of-pocket expenses.
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Addressing Financial Barriers: Proposals for Affordable Respite Care
A major obstacle to the expanding use of respite care, particularly for families raising elderly relatives with dementia, is its high hourly rate of $29 per hour. Most Americans, according to recent polls, support Medicare’s role in paying for long-term care.
The public is generally in favor of tax credits as a way to support careers. Research indicates that policies such as a $5,000 annual career tax credit are widely supported, and there is evidence of successful previous tax credit programs that have been put in place in a number of states. A related federal bill that would provide working-family careers with a federal tax credit is called the Credit for Caring Act.
The introduction of such proposals indicates a rising consensus in favor of creative ways to lessen the financial burdens involved with caring for loved ones, as the number of Americans over 65 continues to rise.
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