“To amend the Internal Revenue Code of 1986 to establish a credit for adult child caregivers.”
No CRS summary available for this bill.
This section states congressional findings on the benefits of multigenerational living arrangements for older adults, including (1) reduced reliance on paid and unpaid formal support due to adult child proximity, (2) lower rates of depression, isolation, and improved cognition amid hearing loss, and (3) a 50 percent lower risk of nursing home transition within two years for those with dementia and disabilities co-residing with an adult child, compared to those supported by non-co-residing children.
This section establishes a new nonrefundable tax credit of $2,000 per qualified relative (maximum of two) under new IRC §25F for eligible caregivers in multigenerational homes. An eligible individual is a U.S. citizen age 18 or older (or age 16 if legally emancipated) who shares a principal residence with the qualified relative for more than six months (or three months if the relative dies during the year), provides at least 10 hours per week of required assistance, and attaches a licensed health care provider's attestation to the tax return. A qualified relative is a specified relative (e.g., child, parent, grandparent, or parent-in-law) age 55 or older who cannot perform at least one activity of daily living and three instrumental activities of daily living (i.e., meal preparation, managing finances, shopping, household chores, communicating, or community travel) requiring 10 or more hours per week of assistance, with the condition lasting at least 180 days. The credit phases out by 1% for each dollar of adjusted gross income over $75,000 ($150,000 for joint filers); is allowable to only one taxpayer per relative (the highest-AGI claimant if multiple qualify); requires married individuals to file jointly; and is reduced by any child and dependent care credit under IRC §21 claimed for the same relative. The provision applies to taxable years beginning after December 31, 2026.