I am beyond frustrated. The media is reporting this new legislation as such a good thing. I have worked with family caregivers for decades. So may end up at or below poverty level. Some of my family caregivers end up homeless. The chronic stress of providing care causes serious health conditions. I lose 2 to 3 caregivers a year to death or serious illness. When this happens the care recipient is usually placed in an alternative setting,such a nursing home. This legislation misses the mark for meeting the needs of the family caregiver.
The family caregiver is not able to save for their own future. They struggle to make ends meet. Those providing care usually have no health care, no income and safety net. The average caregiving journey is 6 to 8 years. There is no affordable respite care services. Caregivers are providing care 24/7 for years without a break. It is not humanly possible for anyone to do.
The Credit for Caring Act represents a significant legislative effort aimed at providing financial relief to the more than 48 million unpaid family caregivers across the U.S. By offering a nonrefundable federal tax credit of up to $5,000, the bill seeks to alleviate some of the financial strain experienced by working family caregivers who often sacrifice their own health and financial security to care for their loved ones.
This proposed tax credit is designed to help offset costs associated with caregiving, including home care aides, adult day care, necessary home modifications, assistive technology, respite care, and transportation. As if the average family caregiver has access to the funds to pay for these things. The endorsement of the bill by AARP, alongside the staggering figure from AARP’s 2023 Valuing the Invaluable report—highlighting approximately $650 billion in annual unpaid contributions by family caregivers—underscores the critical role caregivers play in the healthcare system and the pressing need for supportive measures. I personally feel that AARP has let the family caregiver down. They have a huge lobbying unit focused on making sure politicians vote for their bills. They have the ability to lobby for so much more. They are letting the family caregiver down.
It's the same to the disease specific organizations They are so busy raising money for a cure, and supporting Big Pharma, they ignore the needs of the family caregiver. In fact, not only do they ignore the needs of the family caregiver. They are very stingy on the respite care grants they offer.
However, the Credit for Caring Act, while a step in the right direction, does not fully meet the needs of all family caregivers, particularly those who are most financially strained. A significant limitation arises in the mechanism of tax credits themselves, especially when considering caregivers with little to no income.
Tax Credits and Low/No-Income Caregivers: Tax credits, by their nature, are deductions from the tax liability owed by an individual. For working family caregivers, this can mean a substantial reduction in the amount of income tax they are required to pay, potentially providing financial relief that helps cover caregiving expenses. However, the effectiveness of tax credits is inherently linked to the taxpayer's ability to owe taxes in the first place. For family caregivers who have no income or do not earn enough to file taxes, the benefit of a nonrefundable tax credit becomes moot. Since they do not owe taxes, there is no liability from which to deduct the credit, rendering the financial support inaccessible.
This limitation highlights a gap in the bill's ability to support the most economically vulnerable caregivers—those who may have had to reduce their working hours significantly or leave the workforce entirely to provide care. These caregivers may find themselves in a position where they are unable to benefit from the tax credit, despite being among those who need financial support the most.
Furthermore, the nonrefundable nature of the credit means that if a caregiver's tax liability is less than the credit amount (up to $5,000), they cannot receive the difference as a refund. This contrasts with refundable tax credits, which can provide a refund check beyond zero tax liability, offering direct financial support even to those who pay no taxes.
Possible Solutions and Considerations: To more comprehensively address the financial challenges faced by all family caregivers, including those with little to no income, policymakers could consider several adjustments:
Financial payments for the care they provide. After all, the family caregiver is providing over $650 billion dollars in unpaid care. Without the sacrifices of our caregivers, the long term care industry would collapse.
We are also facing a growing aging population. The youngest of the baby boomers will be retiring by 2030. There have been 10,000 baby boomers retiring every day since 2011. The oldest boomers will be hitting 80 years of age in 2026. And our government has not done anything to address the needs of the family caregiver. We are in a caregiver crisis.
I feel we need a national program that educates the public on the challenges of the family caregiver. I am encouraging every caregiver to build a Care Team Partner Support group. I am challenging the faith based communities to start a Faith in Caregiving program in their communities. As a society we need to encourage volunteerism and provide practical support for the care recipient and their primary caregiver.
Introducing a refundable component to the Credit for Caring Act, allowing caregivers to receive the full benefit of the credit regardless of their tax situation.
Implementing additional direct support measures, such as grants or subsidies for caregiving expenses, that do not rely on the caregiver's tax status. I personally think that $5000 is not enough for anyone. The family caregiver is not saving for their own retirement. Expanding eligibility for existing social service programs to support unpaid caregivers more broadly, recognizing the diverse needs and financial situations of caregivers across the country.
In conclusion, while the Credit for Caring Act offers a promising avenue for supporting family caregivers, its impact may be limited for those without taxable income. Addressing this gap requires a multifaceted approach that considers the financial realities of all caregivers, ensuring that the most vulnerable among them receive the support they need to continue their invaluable work.
Please sign and share this petition with others. The WH Office of Aging meets every 10 years. They plan for policies for the next ten years. The family caregiver and their challenges can no longer be ignored. The lives of the family caregiver are at risk.
Here is a caregivers story about how caring for her mother has impacted her children