Bill > HR7610

This bill proposes to amend the Internal Revenue Code of 1986 to create a new tax credit for individuals who provide care for an adult family member living in their home. Specifically, it establishes a "Multigenerational Home Caregiver Credit" of $2,000 per qualified relative, for eligible individuals who are at least 18 years old (or 16 and emancipated), are U.S. citizens, share the same principal residence as the qualified relative for at least six months, and provide at least 10 hours per week of assistance. A "qualified relative" is defined as someone aged 55 or older who, with a qualifying relationship to the taxpayer or their spouse (such as a parent, grandparent, sibling, or in-law), is unable to perform at least one "activity of daily living" (basic self-care like bathing or dressing) and three "instrumental activities of daily living" (tasks like meal preparation, managing finances, or household chores), requiring a total of at least 10 hours of assistance per week, and this condition is expected to last for at least 180 days or the rest of their life. The credit is subject to limitations, including a reduction based on adjusted gross income over $75,000 (or $150,000 for joint filers), a limit of one credit per qualified relative, a maximum of two qualified relatives per taxpayer, and requires married individuals to file jointly. This new credit is intended to support the growing trend of multigenerational families and acknowledge the benefits of keeping older adults with disabilities in community settings, with the changes taking effect for tax years beginning after December 31, 2026.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/7610/all-info