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Credit for Caring Act: New $5,000 Tax Credit Plan to Aid 48 Million Americans

(Photo from: KARE 11)

The Credit for Caring Act, a bipartisan endeavor, would help roughly 50 million Americans who care for family members financially. Caregivers nationwide need support. Thus, the bill proposes $5,000 in non-refundable federal tax credits.

Credit for Caring Act: New $5,000 Tax Credit Plan to Aid 48 Million Americans (Photo from: KARE 11)

Knowing the Credit for Caring Act

The Credit for Caring Act, presented by Senators Shelley Capito and Michael Bennet and Representatives Mike Carey and Linda Sánchez, gives caregivers up to $5,000 in non-refundable federal tax credits. These credits would cover up to 30% of qualified expenses over $2,000, helping caregivers financially.

Taxable caregivers must earn over $7,500. Caregivers must provide long-term care for a spouse or dependent to receive the tax credit.

AARP and legislators worked together to promote the bill, underscoring the financial burden caregivers faced nationwide. The Credit for Caring Act helps caregivers pay for home health aides, adult day care, and assistive technology.

READ ALSO: Another Stimulus Check For Americans: Controversy Surrounds Texas Lawmaker’s Opposition To Local Guaranteed Income Program

Effect and Implications

Family caregivers offer nearly $600 billion in unpaid care, which the proposed legislation recognizes. More than 48 million Americans are caregivers. Thus, the Credit for Caring Act addresses their financial needs.

AARP estimates that caregivers spend $7,200 annually, highlighting the financial hardships of caregiving. The law wants to help caregivers who work full or part-time by providing tax credits for caregiving expenses.

READ ALSO: Empowering Low-Income Families: How An Extra $1,000 A Month Transformed Lives

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