AARP applauds introduction of bipartisan Credit for Caring Act, Thanks co-sponsor Sen. Warren.

Posted on 01/31/24 by Ted Carey

AARP applauds the reintroduction of the Credit for Caring Act, bipartisan legislation that would provide up to a $5,000 nonrefundable federal tax credit for working family caregivers who routinely cut back on their own health care or dip into their savings each year. Massachusetts Senator Elizabeth Warren is one of the original co-sponsors of the bill.

The proposed legislation was introduced in the Senate by Senators Michael Bennet (D-CO) and Shelley Capito (R-WV) and in the House by Representatives Mike Carey (R-OH) and Linda Sánchez (D-CA). Senators Elizabeth Warren (D-MA), Susan Collins (R-ME), Maggie Hassan (D-NH), and Lisa Murkowski (R-AK) are original co-sponsors.

This financial relief is designed to alleviate the burden on caregivers who often sacrifice their own well-being and financial stability to provide essential care. Those expenses can quickly accumulate, from home care aides to assistive technology and respite care. The Credit for Caring Act acknowledges these challenges and aims to ease the financial strain.

The next step: The bill will be referred to committees in the House and Senate. 

With more than 48 million Americans undertaking caregiving responsibilities, the need for support is urgent. Many caregivers juggle these duties alongside full- or part-time employment, facing financial risks and reduced career opportunities as a result.

AARP is fighting for America’s family caregivers who help seniors live independently in their homes instead of being forced into nursing homes. AARP knows family caregivers need commonsense solutions that will save them time and money and provide them with more support

“Increasingly, policymakers are recognizing the vital role that family caregivers play in our health care landscape — and the pressing need to give them more support through new laws and policies,” says Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer. “Without their unpaid work, America’s system of long-term care would fall apart. Many family caregivers make financial sacrifices, spending thousands of dollars out of their own pockets to care for their loved ones.”

There are 780,000 caregivers across Massachusetts. The unpaid care they provided is valued at $15.1 Billion according to AARP’s Valuing the Invaluable series aarp.org/valuing.

AARP Massachusetts is backing legislation on Beacon Hill that would provide relief locally. An Act to Establish the Family Caregiving Tax Credit would create a new, refundable state tax credit in Massachusetts of up to $1,500 for eligible family caregivers. The credit would be capped per care recipient, so family members working together to care for a loved one would split the credit depending on who had incurred expenses.

If you are caring for an older loved one, AARP has resources that can help. You can find the tools and information at aarp.org/caregiving.

If you would like to help us with caregiving legislation send us an email ma@aarp.org.

This story is provided by AARP Massachusetts. Visit the AARP Massachusetts page for more news, events, and programs affecting retirement, health care, and more.

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