WASHINGTON, March 11, 2025 /PRNewswire/ — AARP commends the reintroduction of the Credit for Caring Act, legislation that would provide financial relief to eligible working family caregivers. The bill, introduced in the Senate by Senators Shelley Moore Capito (R-WV) and Michael Bennet (D-CO) and in the House by Representatives Mike Carey (R-OH) and Linda Sánchez (D-CA), offers up to a $5,000 nonrefundable federal tax credit to help offset caregiving expenses, addressing the significant personal and financial sacrifices caregivers make to support their loved ones. On average, family caregivers spend over $7,200 annually—26% of their income—on out-of-pocket expenses.
“America’s family caregivers put family first, helping their parents, spouses and others stay at home,” said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy & Engagement Officer. “They spend thousands of dollars every year on this care, while juggling work and family responsibilities. We urge Congress to put money back into the pockets of hardworking family caregivers by passing the Credit for Caring tax credit.”
More than 48 million Americans are caregivers who dedicate themselves to caring for aging parents, spouses, and others in need, enabling millions to remain in their homes and communities. However, caregiving often comes at a steep personal cost. Sixty-one percent of family caregivers work either full- or part-time, but many have had to cut back on work or leave their jobs, sacrificing income, retirement savings, and financial security.
The Credit for Caring Act addresses these challenges by providing a nonrefundable federal tax credit of up to $5,000 for specific caregiving-related expenses, such as home care aides, adult day care, home modifications, and respite care.
Caregivers provide immense economic value by delaying or avoiding costly institutional care for their loved ones. An AARP analysis estimates that if caregivers aged 50 and older received better workplace support, the U.S. GDP could grow by an additional $1.7 trillion in 2030.
About AARP
AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation’s largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/español or follow @AARP, @AARPenEspañol and @AARPadvocates on social media.
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SOURCE AARP
