Double Dependents Relief Act

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.