MINNEAPOLIS — Help may be coming soon for millions of Americans who take care of aging loved ones and disabled family members.
Congress is debating a new tax credit that could put money back into their pocket.
According to the AARP, 48 million Americans are providing care for an aging loved one.
That unpaid care adds up to more than $600 billion a year.
The idea behind the new tax credit is to give some of that money back to these families to keep their loved ones at home.
The "Credit for Caring Act" was officially announced on Wednesday by a team of bi-partisan senators and representatives.
Authors of the bill say their goal is to reduce some of the financial burden families are left with after caring for an elderly or disabled family member.
"Family caregivers play a critical role in the lives of their loved ones, often at a significant financial cost to themselves. They have to balance jobs and family responsibilities, and still make ends meet at the end of the month,” Colorado Dem. Senator Michael Bennet said.
Kathy Messerli knows firsthand the time and money it takes to care for an aging loved one.
She's the executive director of the Minnesota Homecare Association and a caregiver herself.
"I was a part of the sandwich generation who was caring for a young child while I was also helping my mother,” Messerli says.
She says most families provide that care without even thinking, out of love, but over time the care can add up.
"This credit would definitely help family caregivers,” Messerli says.
The AARP says the average caregiver is spending more than $7,200 a year.
Cathy McLeer at AARP Minnesota says caregivers often sacrifice their own needs, and their financial security to help an aging loved one
"They're doing everything from helping prepare meals, paying bills, assisting with groceries or medication, some are even doing some light nursing tasks,” McLeer says.
For the last eight years, the AARP has been pushing Congress to provide some relief.
Here's how the tax credit would work:
After a caregiver spends $2,000 every dollar after that would be eligible for the credit.
The credit would cover 30% of the money the caregiver spends.
The maximum credit a caregiver could receive is $5,000.
The AARP says the average caregiver would likely receive about $1,500 a year.
“This credit would really put money back in their pockets,” McLeer says.
CPA Scott Kadrlik says the credit could go into effect for this current tax year in 2024, so he's encouraging caregivers to save their receipts just in case.
"Absolutely, start today gather your information, if you don't need it, you don't need it,” Kadrlik says.
To read the full version of the Credit for Caring Act click here.
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