Bipartisan ‘Credit For Caring Act’ aims to alleviate financial challenges for caregivers

JACKSON, Tenn. —  In 2021, dementia caregivers bore, on average, $12,388 in out-of-pocket costs on behalf of the person with dementia.

As a result of this financial strain, many families significantly cut back on savings contributions and other spending, some reporting eating less due to care costs.

The bipartisan “Credit For Caring Act” will help alleviate the financial challenges of caring for a loved one by creating a new, non-refundable federal tax credit of up to $5,000 for eligible family caregivers.

Eligible caregivers, with an earned income of at least $7,500 for the taxable year, would receive the tax credit if their care recipient meets certain functional or cognitive limitations or other requirements certified by a licensed health care practitioner.

“We need better care, and the only way that’s going to happen is if we have support at both the state and the federal level,” said Amy Gammel, vice chair on the board of directors for the Alzheimer’s Association.

For more Tennessee news, click here.