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Congress·In Committee·H.R. 5881

Congress Proposes New Tax Credit to Help Working Families Pay for Long-Term Care Costs

Double Dependents Relief Act

5 months 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

  • Creates a new federal tax credit for working people who pay out-of-pocket to care for a spouse or close family member with long-term care needs.
  • The credit is worth 30% of qualifying caregiving costs above $2,000, capped at $10,000 per year (with later inflation adjustments).
  • To qualify, you must have earned income over $7,500, have a qualifying child as a dependent, and have a licensed health care practitioner certify the care recipient’s long-term needs.
  • Covered costs can include in-home help, home changes, transportation, supplies, respite care, caregiver training/support, and even some lost wages for unpaid time off (with employer verification).
  • Higher-income households get less: the credit starts phasing down above $150,000 (married filing jointly) or $75,000 (others), and you must list ID numbers for the care recipient and the certifying practitioner on your tax return.
TaxesLabor EmploymentHealthcare

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(3)
Physical Disability
Neutral
Cognitive Developmental
Neutral
Mental Health
Neutral
Positive Impacts(6)
Chronic Illness
Helps
Housing Assistance
Helps
Disability Benefits
Helps
Child Tax Credit
Helps
Homeowner
Helps
Renter
Helps

Milestones

2 milestones2 actions
Oct 31, 2025House

Referred to the House Committee on Ways and Means.

Oct 31, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Early 2026 (as the new tax year begins)

Families begin saving receipts and tracking qualifying caregiving expenses under the new rules.

To avoid losing the credit, caregivers will likely need better paperwork (invoices, mileage logs, employer verification for lost wages) starting early in the year.

During 2026, before filing the 2026 tax return

Care recipients get (or renew) certification of long-term care needs from a licensed health care practitioner.

Without a timely certification covering at least 180 consecutive days (with some days in the tax year), the caregiver may not be able to claim the credit.

Tax filing season for 2026 returns (generally early 2027)

Eligible caregivers claim the new credit when filing their 2026 federal income tax return.

Families may see a smaller tax bill or a larger refund when they file, depending on how much they owe and how the credit applies to their situation.

Source Information

Document Type

Congressional Bill

Official Title

Double Dependents Relief Act

Bill NumberHR 5881
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Analysis generated by AI. Always verify with official sources.