“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 §25G for eligible caregivers equal to 30% of qualified expenses exceeding $2,000, capped at $10,000 per taxable year (inflation-adjusted after 2026 using the medical care cost index). An eligible caregiver is an individual with a qualifying child dependent (per IRC §152(c)), earned income exceeding $7,500 (per IRC §32(c)(2)), and who pays qualified expenses for a qualified care recipient. A qualified care recipient is the caregiver's spouse or specified relative (per 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 vary by age: for ages 6+, inability to perform 2+ activities of daily living (ADLs, per IRC §7702B(c)(2)(B)) or cognitive impairment requiring supervision; for ages 2-6, inability to perform 2+ of eating, transferring, or mobility; for under 2, need for durable medical equipment or skilled practitioner. Qualified expenses include goods, services, and supports (e.g., human assistance, assistive devices, home modifications, respite care, counseling, training, and verified lost wages) for ADLs (per IRC §7702B(c)(2)(B)) and instrumental ADLs (per SSA §1915(k)(6)(F)), reduced by amounts claimed under IRC §§21, 213, 129, 223(f), or 529A(c)(1)(B).