Family caregivers spend $7,200 a year. This proposed federal tax credit could help

USA Today

11-03-2025

Family caregivers spend $7,200 a year. This proposed federal tax credit could help
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Ana Tris had to retire early from her lucrative corporate job because as an only child, the care for her mother required her full attention.
But it also requires two hired caregivers to help Tris, 66, and her husband, care for her 91-year-old mother, who has Alzheimer's disease at their Miami home. The out-of-pocket cost for the caregivers alone was $80,000 last year, said Tris.
Tris is among an estimated 48 million caregivers in the U.S. who provide support to a parent, spouse or loved one, according to the AARP. Family caregivers shoulder roughly $600 billion worth of unpaid labor yearly, the organization said.
Sixty-one percent of those caregivers also have a part-time or full-time job, on top of their caregiving responsibilities. The average caregiver in the U.S. spent $7,242 in out-of-pocket costs in 2021, according to the AARP.
New caregiver tax credit introduced in Congress
On Tuesday, a bipartisan group of U.S. Senators and members of the House of Representatives re-introduced a piece of legislation that if passed, would provide help in the form of a federal tax credit for eligible working family caregivers.
The Credit for Caring Act, if passed, would provide up to a $5,000 nonrefundable federal tax credit for eligible working family caregivers, that would cover 30% of qualified expenses they incurred above $2,000.
The bill would help cover some of the more than $7,200 that families spend on average each year on out-of-pocket caring costs, such as home care aides, adult day care, respite care, transportation, home modifications, or other supports.
The family member does not need to be living in the same house, but the costs would need to be incurred by the caregiver seeking the tax credit, not expenses paid for by the loved one being cared for, AARP said.
The personal financial toll on families is big enough, said Nancy LeaMond, chief advocacy and engagement officer for AARP. But it is also taking a toll on caregivers' work life, she said.
"This has huge impacts on employers because these family caregivers are taking time off for work, they're not accepting promotions and they may not be able to travel or do that part of a job," LeaMond said in an exclusive interview with USA TODAY.
"This legislation is an attempt to give some relief to hard-working individuals who are trying to provide care for their loved ones and trying, at the same time, to continue to work and do what they need to do for themselves and their families," LeaMond said.
Who is sponsoring the bill?
AARP has been working with legislators for 10 years on previous versions of the bill. But LeaMond said she believes the time is finally right for it to become law – and bring relief to many caregivers.
The most recent version of the bill was introduced Tuesday in both chambers. In the Senate, the lead sponsors are Sens. Shelley Moore Capito (R-West Virginia) and Michael Bennet (D-Colorado). In the House of Representatives, the lead sponsors are Reps. Mike Carey (R-Ohio) and Linda Sanchez (D-California).
At least two of the co-sponsors of the bill have personal experience as family caregivers.
'The Credit for Caring Act is a great tool to help ease the financial burden caregivers face, and I am proud to join with my colleagues in reintroducing this bill that aims to accomplish that,' said Capito, who is chairman of the Senate Labor-HHS Appropriations Subcommittee.
'Like so many Americans, I helped care for both of my parents as they battled Alzheimer's at the end of their lives, and therefore, I understand the emotional and physical toll it can take on individuals and families," she said. "By passing this bill, we can help caregivers focus more on their loved ones and less on how much it will cost them.'
Sanchez also has personal experience.
'Caring for both of my parents after they were diagnosed with Alzheimer's has given me a personal understanding of the emotional, physical, and financial challenges families face when caring for a loved one," said Sanchez. "Family caregivers – two-thirds of whom are women – often juggle work, family responsibilities, and the time and financial demands of caregiving. The Credit for Caring Act will ease some of these challenges by providing much-needed financial relief through a tax credit for home care and adult day care.'
A version of the bill introduced last year, with 98 co-sponsors, did not make it out of committee.
But LeaMond said momentum has risen over time. In the last few years, more elected officials have seen and heard from caregivers, including their own families, she said.
During the presidential campaign, both candidates recognized the importance of family caregivers. President Trump talked about the fact that there should be a tax credit to help hard-working family caregivers and supported a tax credit, said LeaMond.
Having that backing and bi-partisan support from members of Congress, hopefully will make the tax credit law. she said.
Additionally, more than 102 organizations signed a letter of support for the Credit for Caring Act, AARP said.
Voters in a poll support need for a caregiver tax credit
Results of a national poll of 4,000 voters were released by AARP in February, showing 84% said they supported a caregiver tax credit.
Here's some other highlights from the poll:
Support for the caregiving tax credit spans party lines, with strong majorities of Republicans (84%), Independents (82%), and Democrats (87%) in favor.
76% of voters agree that "Before Congress extends any tax breaks for the wealthy and corporations, it should support working Americans with a tax credit to help cover the expenses of taking care of a loved one."
Family caregiving crosses party lines, with nearly two-thirds of voters (63%) serving as family caregivers at some point in their lives—many of them struggling financially.
Most voters (63%) say they are worried about their personal financial situation.
More men are becoming family caregivers
Men face a unique set of challenges when it comes to stepping into the role of a caregiver.
Tax credit could be helpful
Tris' mother, Elvira Tris, has been living with Tris and her husband for nine years. Ana Tris originally retired from her job with a luxury retailer to care for her mother and handled the care exclusively for two years. But she quickly found out that she needed more help.
Caregiving, especially without assistance, is very hard, Tris said.
"Basically, no life, no sleeping because she was in tremendous duress initially," Tris said.
Her mom's original brain atrophy diagnosis has since developed into Alzheimer's, she said.
Even with paid caregivers – one of whom stays with the family over the weekend – there are still stresses, said Tris. On Monday, the caregiver called in sick and Tris needed to go to a doctor's appointment for herself. So her husband, who is still working, had to stay home and care for his mother-in-law.
Work-life balance: Family caregivers are struggling at work, need support from employers to stay, AARP finds
A Caregiver Tax Credit would be a welcome relief, said Tris.
"I do feel like it's a beginning," said Tris. Anything is helpful, she said.
In order to qualify for the tax credit, the person needs to be a working caregiver with earned income of more than $7,500 a year, said Megan O'Reilly, AARP's vice president for government affairs for health care and family issues.
The credit also phases out for caregivers at higher incomes, fully phasing out at $125,000 for an individual and $200,000 for joint filers.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [e-mail] or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.