Carney Introduces Bipartisan Caregiver Tax Relief Act of 2008

Press Release

CARNEY INTRODUCES BIPARTISAN CAREGIVER TAX RELIEF ACT OF 2008

Congressman Christopher P. Carney has teamed up with Republican Congressman Todd Platts of Pennsylvania to introduce the Caregiver Tax Relief Act of 2008 (HR 6448). This bill creates a $2,500 tax credit to be used by an individual caring for an individual with long-term care needs.

"The way we take care of our seniors tells a lot about us as a community. Today, a lot of families are taking on the responsibility of caring for an aging parent. We should be helping these families in need, and helping seniors stay close to their loved ones. The Caregiver Tax Relief Act provides assistance to seniors and their families, and makes it easier for these families to stay together. This means helping a working mother who also cares for her elderly father, or making it easier for families to all chip in to pay for long-term care. I see families doing this every day, but caregivers also need to take care of themselves. This tax break makes caregiving a little bit easier. I will fight to make sure this legislation becomes a reality," said Carney.

Caregivers give 80% of long-term care. And people are living longer in retirement. In 1989, 60 percent of adults between the ages of 41 and 59 had at least one living parent. In 2005, that number was 71 percent, according to the Pew Research Center. In addition, the fastest-growing segment of the population is people over the age of 85. Over the next 20 years, the number of people aged 85 or over is expected to increase by half.

"Individuals who take the responsibility to care for their loved ones are the unsung heroes of our healthcare system and save taxpayers millions of dollars every year," said Congressman Platts. "This legislation will help keep families together and provides a small measure of relief to individuals and families making enormous personal sacrifices each and every day."

This tax credit is fully refundable so that caregivers will be able to plan better for the future--they will receive credit regardless of tax liability. The cap for this credit is $75,000 for individual and $150,000 for couples. It reduces by $100 for every $1,000 over the cap.

"This is about doing the right thing for our families," said Carney. "I am proud to support this legislation that will make a real difference in the lives of people who are taking care of a family member in need."

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