H.R. 4708, or as it is more commonly referred to, “The Credit for Caring Act,” is currently being reviewed by Congress within the Ways and Means Committee. Sponsored by Tom Reed of New York, this bill proposes a tax credit of 30 percent of the costs of care when that care exceeds $2,000 in a given tax year. The maximum credit that the bill will allow is $3,000, meaning that if you spend $10,000 or more in a tax year, you will have $3,000 returned to you after you file your taxes. Furthermore, the bill specifies that you must be paying for the senior care of a spouse or another dependent family member and that you have a taxable income of at least $7,500 for the year. The bill was introduced back in March of 2016, but nothing has happened with it yet.
The bill has received the support of the AARP, which is the nation’s largest lobbyist group. And while that’s a big push of support, the political experts that look at these things have placed the odds of this bill’s success as it currently stands at just 7 percent. Despite the fact that this bill is designed to help people that are trying to balance both keeping their job and helping out a family member in need, this is not something that is a huge priority for Congress thanks to the large costs that would be placed directly upon the government. However, one of the reasons why it’s so important that awareness of this bill be increased is because the government already fronts much of these costs through Medicare and Medicaid programs all across the country. This would shift a large portion of the burden away from these organizations and onto the IRS, however.
As we continue to look at how you are considering paying for the senior care of a loved one, know that there are things that you can do. While this revision to the Internal Revenue Code is not finalized, and while there’s a good chance that it might not even pass, know that there are other resources out there. Look to your insurance policy, look to lower cost types of care, such as in-home care, look at friends and other family members who might be willing to pitch in a hand when it comes to helping out with care, and look to the support of local organizations and charities.
If the passage of this bill is something that you think you would benefit from, learn more about it. You can also write your local Congress representative, if you wish, to express to them why the passage of such a bill would be important. These are all tiny steps, but they might help. And at the very least, Congress reps often have caseworkers underneath them that might be able to point you in the right direction when it comes to your own family’s journey toward finding the best senior care possible. Family caregivers have a difficult task in front of them, and every bit of help that you can get is to be appreciated.
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