“A bill 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 despite hearing loss; and (3) a 50 percent lower risk of nursing home transition within two years for those with dementia and disability co-residing with an adult child.
This section establishes a new nonrefundable tax credit of $2,000 per qualified relative (maximum of two qualified relatives, or $4,000) for eligible individuals against income tax for taxable years beginning after December 31, 2026. An eligible individual (age 18 or older, or age 16 if legally emancipated; U.S. citizen; sharing principal residence with the qualified relative for at least six months, or three months if the relative dies during the year; providing at least 10 hours per week of required assistance; and attaching a licensed health care provider attestation) may claim the credit for a qualified relative who (1) is related as a child, descendant, sibling, parent, ancestor, stepparent, or parent-in-law; (2) is age 55 or older; (3) cannot perform at least one activity of daily living (ADL, i.e., eating, toileting, transferring, bathing, dressing, or continence, per section 7702B(c)(2)(B)) and three instrumental activities of daily living (IADLs, i.e., meal preparation, finances, shopping, household chores, communication, or community travel/participation) requiring at least 10 hours per week of assistance; and (4) has or will have the impairment for at least 180 days or life, whichever is shorter. (Thus, the credit supports multigenerational home caregiving for older relatives with significant functional limitations, coordinating IADL definitions with Social Security Act programs.) The credit phases out by 1% of the excess adjusted gross income (AGI) over $75,000 ($150,000 for joint filers); is available to only one taxpayer per qualified relative (highest AGI if multiple eligible); requires married individuals to file jointly; and is reduced by any child and dependent care credit under section 21 claimed for the same relative.