Latest news with #CreditforCaringAct
Yahoo
30-04-2025
- Health
- Yahoo
Rates of Alzheimer's Disease rising, how Congress is addressing the need for care
(WTAJ) — Rates of Alzheimer's Disease is on the rise at a time when the nation is facing a shortage of caregivers. According to the Alzheimer's Association, there are now an estimated seven million people diagnosed with Alzheimer's who are, in most cases, being cared for by family. Julie Steinbacher, an elder and estate planning lawyer who volunteers her time as an advocate with the Alzheimer's Association Greater Pennsylvania Chapter, said taking care of a loved one with dementia can be a full time job for caretakers. Cambria County Clothing Boutique helps children get free clothing '60% of them are still working. But of those people that're still working, 57% of them are going to end up having to do something with their job, take a leave of absence, go in late, leave early, Steinbacher said. Steinbacher was a caretaker for her own mother. She said that along with the emotional burden of being a caregiver also comes financial burden. Some caregivers find themselves on the line for the cost of adult day care, home care aides, home modifications or prescription copays. Lawmakers are proposing the Credit for Caring Act which would provide a tax credit of up-to $5,000 or 30% of costs for those caring for someone with a diagnosed chronic illness if their expenses cost more than $2,000 annually. Steinbacher said this legislation could even help reduce rates of elder abuse. 'Elder abuse is rampant, but it happens for many different reasons. Some of the reasons that it happens for is just totally wrong and, unthinkable. But sometimes it's situations where people really are trying to do a good job and they don't have the resources to do it,' Steinbacher said. The bill was introduced in January 2024 and is still being reviewed. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
30-03-2025
- Business
- Yahoo
Will the US Implement a Caregiver Tax Credit? Experts Explain
Millions of Americans provide unpaid care for aging or ill family members, and it's costing them. 'Family caregivers spend, on average, over a quarter of their income on providing said care,' said Javier Palomarez, founder and CEO of the United States Hispanic Business Council. 'Considering the sustained rise of healthcare costs, this is only sure to increase.' Learn More: Read Next: To help ease the financial burden, lawmakers have proposed the Credit for Caring Act, a bill that would provide tax relief to eligible family caregivers. Experts say the credit could offer meaningful support — but its future is far from certain. The proposal would give caregivers a financial break on out-of-pocket expenses. 'The Credit for Caring Act proposes a tax credit of up to $5,000 per year based on 30% of 'qualified expenses' to the extent such expenses exceed $2,000,' explained Annette Nellen, a certified public accountant (CPA), attorney, and tax professor at San Jose State University. 'So if someone has expenses of $2,000 or less, no credit.' To qualify, 'the expenses must be paid by an 'eligible caregiver' who pays 'qualified expenses' for a 'qualified care recipient.' The taxpayer claiming the credit must have earned income above $7,500.' Nellen also notes that the credit is intended for middle to low-income individuals who pay these expenses. 'The credit starts to phase out when modified AGI exceeds $75,000 ($150,000 for a married couple),' she explained. Armine Alajian, CPA and founder of the Alajian Group, added context to what counts as a qualified expense: 'Those expenses might include adult day care, home improvements like safety handrails or paying for in-home healthcare aides.' Check Out: 'A tax credit would provide immediate relief to an estimated 53 million Americans that currently serve as unpaid family caregivers and provide an economic lifeline for those that have spent their time and money taking care of others,' said Palomarez. Shane Lucado, founder and CEO of InPerSuit, emphasizes the potential for financial relief: 'Many caregivers spend $7,000 or more each year on services such as home health aides and medical supplies, so a tax credit could ease some of that financial pressure.' Lucado also sees wider economic benefits. 'This credit would lower financial burdens for caregivers and lead to higher workforce participation rates from those who need to quit employment to provide care for family members,' he added. 'Workplace productivity losses could decrease when employees balance their work responsibilities with caregiving tasks.' Palomarez agrees the credit could improve care quality, too. 'The tax credit will also enable family caregivers to invest in higher quality equipment, medicine and surgeries,' he noted. Support for the bill is strong, but progress has been slow. 'This bill, which is something AARP has been trying to make a reality for more than 10 years, is one of the few issues that has bipartisan support among lawmakers and the public,' said Alajian. 'But despite that, a similar version of the bill didn't make it out of committee last year, so nothing is guaranteed.' Even if the bill becomes law, experts point out its limitations. 'While a tax credit of up to $5,000 would be a helpful sum,' said Alajian. 'Sadly, many people are forced to limit or even quit their jobs when caregiving becomes a full-time job in itself. So, it would be far from the amount needed to compensate for leaving a career.' Nellen raises another concern: The difficulty of navigating tax-based aid. 'The complexity of definitions, recordkeeping and calculations begs the question of whether providing this financial assistance through the tax law is the best approach,' Nellen said. 'Alternatives include providing assistance directly to the 'qualified care recipient' and offering more resources for care (care facilities, visiting nurses, etc.).' The bill's future is still unclear. 'Turning this tax credit into law presents difficulties since lawmakers must weigh the cost of its rollout against expected revenue declines,' said Lucado. 'The federal government has to find a way to pay for this credit while avoiding major effects on current social programs or deficit growth.' In other words, Congress would need to find money to fund the credit without cutting other programs or increasing the national debt. Still, with a growing population of unpaid caregivers and rising medical costs, experts agree the need is real — even if the solution is complicated. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying 12 SUVs With the Most Reliable Engines 4 Things You Should Do if You Want To Retire Early 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on Will the US Implement a Caregiver Tax Credit? Experts Explain
USA Today
11-03-2025
- Business
- USA Today
Family caregivers spend $7,200 a year. This proposed federal tax credit could help
Family caregivers spend $7,200 a year. This proposed federal tax credit could help Show Caption Hide Caption How to talk to your parents about death and money Talking to your loved ones about death and money can be an uncomfortable conversation, but experts say it's necessary to prevent future stress. 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 blinfisher@ or follow her on X, Facebook or Instagram @blinfisher and @ on Bluesky. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.
