“To amend the Internal Revenue Code of 1986 to provide a tax credit for working family caregivers.”
No CRS summary available for this bill.
This section establishes a new nonrefundable tax credit under new IRC §25F for working family caregivers equal to 30% of qualified expenses exceeding $2,000, capped at $5,000 ($50 increments, inflation-adjusted after 2025 using medical care costs). An eligible caregiver is an individual with earned income exceeding $7,500 who pays qualified expenses for a qualified care recipient, defined as a spouse or specified relative (i.e., under IRC §152(d)(2)(A)-(H)) certified by a licensed health care practitioner as having long-term care needs for at least 180 consecutive days (part during the tax year), with certification valid if made within the 39½-month period ending on the tax return due date. Long-term care needs are met if the recipient (A) is age 6 or older and unable to perform at least 2 activities of daily living (ADLs) without substantial assistance or requires substantial supervision due to severe cognitive impairment and cannot perform at least 1 ADL (or age-appropriate activities); (B) is age 2-5 and unable to perform at least 2 of eating, transferring, or mobility without substantial assistance; or (C) is under age 2 and requires specific durable medical equipment or a skilled practitioner due to a severe health condition. Qualified expenses include goods, services, and supports (e.g., human assistance, assistive technologies, home modifications, respite care, counseling, lost wages verified by employer, and travel costs) that assist with ADLs (per IRC §7702B(c)(2)(B)) or instrumental ADLs (per SSA §1915(k)(6)(F)), reduced by amounts claimed under IRC §§21, 213, 129, 223(f), or 529A(c)(1)(B), and provided solely for the recipient.