Credit for Caring Act of 2025

The bill would create a new federal tax credit for people who provide long-term care to aging parents, spouses, or other loved ones. The credit would cover 30% of qualified caregiving expenses that exceed $2,000, with the maximum credit amount adjusted for inflation after 2025. If enacted, the credit would apply to tax years starting after December 31, 2024—so it would affect 2025 tax returns and beyond.

Many family caregivers 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. The bill is currently under committee consideration in the Senate and has not yet been voted on by the full chamber.