Source: United States Senator for Maine Susan Collins
Washington, D.C. –U.S. Senators Susan Collins (R-ME) and Angus King (I-ME) joined a bipartisan effort to provide working family caregivers in Maine and across the country with a tax credit of up to $5,000 to assist with out-of-pocket caregiving expenses.
The Credit for Caring Act that Senators Collins and King co-sponsored would provide relief for those who are taking on added financial responsibilities as family caregivers supporting a loved one. The nonrefundable tax credit could be used toward expenses such as transportation, home modifications to accommodate a family member, medication management services, and training or education for the caregiver. Senator King previously cosponsored the measure in the 115th and 116th Congresses.
According to AARP, there are approximately 180,000 family caregivers in Maine who provide $2.2 billion in uncompensated care annually to their loved ones. Nationally, family caregivers provide $470 billion in unpaid care.
“Millions of Americans devote enormous time and attention and make many personal and financial sacrifices to ensure that their loved ones have the high-quality care they need day in and day out. These individuals know all too well the compassion, commitment, and endurance that it takes to be a caregiver and help loved ones remain in the comfort and safety of their own homes,” said Senator Collins. “This legislation would support family caregivers by easing the financial burdens that many face.”
“The COVID-19 pandemic has highlighted just how vital Maine’s family caregivers are to our communities – especially our seniors,” said Senator King. “These homecare providers allow vulnerable citizens to continue living in the comfort of their own homes. This work isn’t easy, requiring caregivers to give their own time and money – which is why we should help them make ends meet. By easing the financial strain on these family caregivers who already sacrifice so much, we can let these local heroes focus their time and energy on helping the ones they love. I’m thrilled to be part of this bipartisan effort, and hope this bill can provide real relief to working families across the state and country.”
“AARP thanks Senators Collins and King for cosponsoring the Credit for Caring Act and recognizing America’s over 48 million family caregivers are the backbone of this country’s care system. Family caregivers help save taxpayer dollars by delaying or preventing expensive nursing home care. The Credit for Caring Act will help offset some of the more than $7,200 that family caregivers typically spend out-of-pocket each year on care-related expenses,” said Noël Bonam, AARP Maine State Director.
The Credit for Caring Act would create up to a $5,000 nonrefundable tax credit adjusted to inflation for family caregivers. The amount of the credit would be 30 percent of the qualified expenses paid or incurred by the family caregiver above $2,000, up to a maximum credit amount of $5,000.
Under the bill, qualifying care recipients must have been certified by a health care practitioner to be in need of long-term care for at least 180 consecutive days. Eligibility is limited to a caregiver of a qualified care recipient who must pay for caregiving expenses and has earned income in excess of $7,500. Credit is phased out when income exceeds $150,000 for joint filers or $75,000 for individual filers.
The bill was introduced by Senators Joni Ernst (R-IA), Michael Bennet (D-CO), Shelley Moore Capito (R-WV), and Elizabeth Warren (D-MA).
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