Bill > HR5881

This bill establishes a new tax credit for working family caregivers who provide care for dependents with long-term care needs. The credit allows eligible taxpayers to claim 30% of qualified caregiving expenses that exceed $2,000, with a maximum annual credit of $10,000. To qualify, a taxpayer must have a qualifying child, earn more than $7,500 annually, and provide care for a care recipient who has been certified by a licensed healthcare practitioner as having specific long-term care needs. These needs include being unable to perform daily activities independently, requiring substantial supervision due to cognitive impairment, or having severe health conditions. Qualified expenses include a wide range of support services such as human assistance, assistive technologies, home modifications, transportation, respite care, and related travel and counseling costs. The credit phases out for taxpayers with modified adjusted gross incomes above $150,000 for joint filers or $75,000 for other filers, with the thresholds subject to annual inflation adjustments. The bill is designed to provide financial relief to working individuals who are caring for dependents with significant care requirements, recognizing the economic and personal challenges of family caregiving.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/5881/all-info