More than 63 million Americans now provide unpaid care for an aging parent, spouse, child, or other loved one. Family caregivers now provide an estimated $600 billion in unpaid care each year, support that helps millions of older adults remain in their homes and reduces reliance on institutional care. Without unpaid family caregivers, many older adults would likely require earlier placement in assisted living or nursing homes, increasing costs for families as well as public programs like Medicaid.
Yet nearly eight in 10 family caregivers report paying caregiving expenses out of their own pockets, spending an average of more than $7,200 annually while often balancing jobs and family responsibilities. As lawmakers search for ways to support these families, bipartisan proposals such as the Credit for Caring Act would create a federal tax credit worth up to $5,000 for eligible working caregivers. Several states have already enacted similar programs, creating a growing mix of state caregiver tax credits while Congress continues debating a nationwide approach.
