Congress·In Committee·H.R. 2036

Congress Proposes New $5,000 Tax Credit to Help Working Families Pay for Caregiving Costs

Credit for Caring Act of 2025

about 1 year ago·View on Congress.gov

Part of: Bipartisan Bill Proposes $2,000 Tax Credit for Family Caregivers Starting 2027

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Stalled

No legislative action in over 90 days.

Legislative Progress

House

Senate

President

Law

Key Points

This bill would create a new federal tax credit to help people who work while also caring for a family member. If you spend more than $2,000 a year on caregiving expenses, you could get back 30% of those costs as a credit on your taxes, up to a maximum of $5,000 each year.
To qualify, the person you are caring for must be a relative, such as a spouse or parent, and a doctor must certify they have long-term health needs lasting at least six months. The caregiver must also earn at least $7,500 a year from a job to be eligible for the credit.
The credit covers many common costs, including home modifications like ramps, assistive technology, transportation, and even lost wages if you have to take unpaid time off work. It also covers 'respite care,' which pays for a professional to step in so the family caregiver can take a break.
The benefit is designed for middle-class families. The credit starts to decrease for single people making over $75,000 a year or married couples making over $150,000. These income limits and the $5,000 maximum credit will be adjusted for inflation in the future to keep up with rising costs.
If passed, this new rule would apply to the taxes people file for the year 2025 and beyond. It aims to reduce the financial pressure on the millions of Americans who balance a career with the daily demands of looking after an aging or disabled loved one.

TaxesHealthcare

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Mar 11, 2025House

Referred to the House Committee on Ways and Means.

Mar 11, 2025

Introduced in House

Related News

3 articles

Bloomberg Law·about 1 year ago

Caregiver Tax Credit Could Pass in 2025 With Trump, GOP Support

Advocates are optimistic that the Credit for Caring Act may finally pass in 2025 due to bipartisan support and President Trump's campaign endorsements. The Joint Committee on Taxation previously estimated a similar credit would cost approximately $28 billion over five years.

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Moneywise·4 months ago

Idaho Woman Can Barely Afford Care for Her 83-Year-Old Mother With Dementia, and Medicare's 2026 Changes Could Push Caregivers Like Her to the Brink

As Medicare premiums and deductibles are set to rise in 2026, the Credit for Caring Act is highlighted as a critical legislative solution. The bill would offer a $5,000 credit to help offset the average $7,200 in out-of-pocket costs caregivers face annually.

AMAC·about 1 year ago

Carey, Sánchez, Capito, Bennet Reintroduce the Credit for Caring Act

Bipartisan lawmakers reintroduced the Credit for Caring Act to provide a nonrefundable tax credit of up to $5,000 for working family caregivers. The bill covers 30% of qualified expenses over $2,000, including home modifications, respite care, and transportation.

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Related Bills

3 bills

H.R. 6900Related bill

American Affordability Act of 2025

Dec 18 — Referred to the Committee on Ways and Means, and in addition to the Committees on Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

H.R. 5881Related bill

Double Dependents Relief Act

Oct 31 — Referred to the House Committee on Ways and Means.

S. 925Identical bill

Credit for Caring Act of 2025

Mar 11 — Read twice and referred to the Committee on Finance.