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Dakota Center for Independent Living

Tax Credit Proposed for Caregivers of People with Disabilities

tex-credit-1A bill introduced in the beginning of March in the House of Representatives would allow family members who care for people with disabilities or aging family members receive up to $3,000.00 in tax savings annually. The bill is known as the Credit for Care Act.

The tax credit offsets expenses for things like home modifications, groceries, transportation and hired help to care for individuals with long-term needs who need assistance performing at least two activities of daily living such as eating, walking, dressing or grooming.

Family members could qualify for providing care to a spouse, parent, grandparent, sibling, child, niece, nephew, brother-in-law, sister-in-law, father-in-law or mother-in-law. To be eligible, caregivers have to be working and earning at least $7,500.00 per year.

“This is more than just another tax credit,” said U.S. Rep. Linda Sanchez, D-Calif., who introduced the legislation along with U.S. Rep. Tom Reed, R-N.Y. “This is about how we can help older adults and people with disabilities live independently in their own homes and communities.”