Credit Where Credit’s Due

Posted on 09/30/21

CAREGIVING

By AARP Rhode Island State Director Catherine Taylor

Families are the backbone of the system of long-term care for our oldest and most vulnerable Americans – the ranks of which are growing as the population ages. It is backbreaking work and for many it’s more than they can handle.

Here is the proof in Rhode Island by the numbers. There are 136,000 Ocean State caregivers who provide 114 million hours of unpaid caregiving annually to one or more family members and other loved ones. Based on an hourly cost of $15.76, that is an annual value of $1.79 billion dollars.

Family caregivers provide invisible but invaluable services that we take for granted. They keep people healthier and comfortably at home instead of in a state Medicaid-funded nursing home. They keep people safer by reducing the chance of falls. And that helps reduce the burden on hospitals, urgent care units and rehab facilities. They reduce social isolation, which can prevent depression – which can exacerbate any number of chronic medical conditions and degenerative ailments.

But they give so much more than these hours of unpaid labor. The average Rhode Island family caregiver spends more than $7,000 a year in out-of-pocket expenses related to caregiving. More than half tend to caregiving responsibilities while holding down a job. Lower-income households spend a higher percentage of their earnings on caregiving than those with higher earnings. Many family caregivers on tight budgets work for companies that do not offer paid family leave that applies to caregiving.

Some of Rhode Island's family caregivers would get much-needed financial assistance under the federal Credit for Caring Act, introduced in May in the U.S. Senate and House of Representatives. The bipartisan bill would provide an up-to-$5,000 federal tax credit for eligible working family caregivers — which could help with their formidable out-of-pocket caring expenditures.

“Family caregiving can be overwhelming, exhausting and a major financial challenge,” said Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer. “That's why AARP is fighting to make life a little bit easier for unpaid family caregivers and ease their financial concerns. We are delighted to support the bipartisan Credit for Caring Act, which will help put a little money back in the pockets of caregivers who spend in the service to their loved ones."

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The bill's new, nonrefundable federal tax credit would give eligible family caregivers who work a 30-percent credit for qualified expenses they paid or incurred above $2,000. The credit could help offset the costs of services like home care aides, adult day care and respite care as well as home modifications like ramps and smart-home technology that make caregiving at home safer and easier.

The legislation would not only help individual caregivers make ends meet, but it could also boost the economy, according to an AARP analysis that found that if 50-plus caregivers have more support in the workplace, the U.S. gross domestic product could grow by an additional $1.7 trillion (5.5 percent) by 2030.

This summer, AARP conducted a survey that found that eight in 10 registered voters who responded favor providing family caregivers who work with a tax credit of up to $5,000, with the credit based on how much the caregivers spend to aid their loved ones.

Even in a time of great political division, support for assistance for family caregivers is bipartisan. 78 percent of Republicans, 93 percent of Democrats and 83 percent of independents surveyed favor such assistance.

You will be hearing a lot more from AARP Rhode Island about the Credit for Caring Act. We will ask you to contact your U.S. Representative and two U.S. Senators to urge them to vote yes when the time comes. Let them know what passage might mean to you or a caregiver you know.

And let us know, too. We’re looking for people to tell their story. Send a note, including your phone number, to Matt Netto at AARP, 10 Orms St., Providence, RI 002904, or mnetto@aarp.org, and mention that we have your permission to share it on our web page and on social media.

Together, we can get this done for thousands of Rhode Islanders.

Meanwhile, AARP offers ongoing information, advice and resources for family caregivers. We’ll host an online Caregiving webinar at 12 p.m. on October 19. It’s free for everyone, of course, so please share with caregivers you know. Learn more and register at www.aarp.org/ri. I look forward to seeing you there.

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

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