Iowa Senator Joni Ernst is one of the sponsors of a bipartisan bill that would provide a tax credit for those who take care of aging parents, grandparents or other family members.
“It’s time that we recognize the essential role these caregivers play in supporting aging relatives or family members with a long-term illnesses and disabilities,” Ernst says. Ernst is sponsoring the Credit for Caring Act along with fellow Senators Michael Bennet, a Democrat from Colorado; Kelly Ayotte, a Republican from New Hampshire; and Elizabeth Warren, a Democrat from Massachusetts.
“This legislation will provide up to a $3,000 non-refundable tax credit to working family caregivers for qualified expenses,” Ernst explains. She says the tax credit helps alleviate some of the out of pocket financial expenses that caregivers often take on, all while balancing full or part-time employment.
“The credit would be available to those working family caregivers who have incurred expenses of more than $2,000 while caring for a family member who has been certified to be in need of long-term care,” Ernst says. “In particular, this credit would help cover the costs associate with caring for a family member — such as home modifications to accommodate special needs, medication management, respite care, and more.”
AARP supports the bill and says there are an estimated 317,000 family caregivers in Iowa who provide an estimated unpaid care worth more than $3.8 billion annually to their adult loved ones. Ernst says the credit would also phase out at higher income levels to ensure appropriate taxpayer protections are in place.