How the Family Caregiver Tax Credit Could Support MA Caregivers in 2021

Posted on 04/29/21 by Cindy Campbell

To help the 844,000 family caregivers in the state, AARP Massachusetts has filed legislation that will provide a tax credit for certain expenses incurred by family caregivers.

An Act to Establish the Family Caregiver Tax Credit (H 3043 and S 788) is sponsored by  Sen. Jason M. Lewis (D-Fifth Middlesex) and  Rep. David Rogers (D-24th Middlesex).

The Family Caregiver Tax Credit bill would provide a tax credit for certain expenses incurred by a family caregiver for the care and support of a qualifying family member.

While most caregivers are asked to assist an individual with basic activities of daily living, such as mobility, eating, and dressing, many are also expected to perform more complex tasks on a daily basis such as administering multiple medications, providing wound care, and operating medical equipment.

On average, family caregivers are spending roughly $7,000 per year on out-of-pocket costs related to caregiving. That’s why AARP urges lawmakers to enact An Act to Establish the Family Caregiving Tax Credit to better support family caregivers.

What is An Act to Establish the Family Caregiving Tax Credit?

The Act will provide family caregivers with an income tax credit to cover expenses incurred by a taxpayer for the care and support of a qualifying family member. The amount of the credit is equal to 100% of eligible expenses, with a maximum allowable credit of $1,500. The tax credit would help address the financial challenges of caregiving, and allow more unpaid family caregivers to keep their family members in the community.

Expenses that would be covered under this bill include:

  • Improvements or alterations to the taxpayer's primary residence thereby enabling the care recipient to remain mobile, safe, and independent in his/her home and community.
  • The purchase or lease of equipment necessary to assist an eligible care recipient in carrying out one or more activities of daily living.
  • Hiring a home care aide or personal care attendant; paying for respite care; paying for adult day health
  • The cost of transportation, legal and financial services, and/or assistive technology to care for their loved one.

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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