New tax credit would help working caregivers offset family care costs
In committeeS. 925Latest action
Sponsor: Shelley Moore Capito · Senator · WV
AIDecoded by AI · checked against the recordRead the official text
Official title: Credit for Caring Act of 2025
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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Working caregivers could claim a federal of up to $5,000 for costs of caring for a sick or disabled family member.
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What does this do?
This bill would create a federal equal to 30% of qualifying caregiving expenses above $2,000, capped at $5,000 and rising over time with medical costs. Covered expenses include in-home aides, home modifications, transportation, medical equipment, respite care, counseling, and lost wages from unpaid caregiving leave, as long as they aren't already claimed under other tax benefits.
Who does it affect?
It would mainly affect working adults, often middle-aged, who care for a spouse or close relative with a certified need for substantial daily help for at least 180 days. Caregivers must earn at least $7,500 annually, and the credit phases out for individuals earning above $75,000 or couples above $150,000.
Why does it matter?
Because this works through the tax system rather than direct payments, caregivers would need to meet certification and income requirements and keep documentation to reduce what they owe in federal income tax.
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Where does it stand?
- IntroducedMar 11, 2025
- Senate committeeYou are here · Mar 11, 2025
- Senate vote
- House
- The president's desk
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the president.
Latest action: — Read twice and referred to the Committee on Finance.