Bill > S3295

This bill establishes a new tax credit for adult child caregivers who provide substantial care for aging relatives with significant health limitations. Specifically, the bill allows eligible individuals aged 18 or older (or legally emancipated at 16) who are U.S. citizens to claim a $2,000 tax credit for each qualified relative they care for, provided they live in the same household for at least 6 months and provide a minimum of 10 hours per week of assistance. Qualified relatives must be at least 55 years old and unable to independently perform at least one activity of daily living and three instrumental activities of daily living, such as meal preparation, managing finances, shopping, and household chores. The credit is subject to income limitations, gradually reducing for taxpayers with adjusted gross incomes above $75,000 ($150,000 for joint returns), and can only be claimed by one taxpayer per qualified relative, with a maximum of two qualified relatives per year. A healthcare provider must also attest to the relative's care needs. The bill aims to support multigenerational families by providing financial recognition for family caregivers and potentially reducing the need for formal care services, with the credit becoming effective for tax years beginning after December 31, 2026.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3295/all-info