“A bill 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 (IRC §25F) for working family caregivers equal to 30% of qualified expenses exceeding $2,000, capped at $5,000 ($50 increments, indexed for inflation after 2025 using the medical care cost adjustment under IRC §213(d)(10)(B)(ii) with 2024 as base year). Eligibility requires the taxpayer to (1) pay qualified expenses for a qualified care recipient (spouse or specified relative 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 (portion in taxable year; certification valid if made within 39½ months of tax return due date), and (2) have earned income exceeding $7,500. Long-term care needs are defined by age: for individuals age 6+, inability to perform 2+ activities of daily living (ADLs, per IRC §7702B(c)(2)(B)) without substantial assistance or need for substantial supervision due to cognitive impairment plus inability to perform 1+ ADL; for ages 2-5, inability to perform 2+ of eating, transferring, or mobility without substantial assistance; for under age 2, need for specific durable medical equipment or skilled practitioner if parents/guardians absent. Qualified expenses include goods, services, and supports (e.g., human assistance, assistive devices, home modifications, respite care, caregiver counseling/training, verified lost wages, travel) aiding 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 care recipient. (Thus, the credit supports family-provided or purchased long-term care while preventing double tax benefits.)