Congress Proposes New Tax Credit to Help Working Families Pay for Long-Term Care Costs
Also known as: Double Dependents Relief Act
Legislative Progress
Impacts
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.
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
What Happens Next
Projected impacts based on AI analysis
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.
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.
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
Sponsor
Data Sources
Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.