S.925 - Credit for Caring Act of 2025 (119th Congress)
Summary
The Credit for Caring Act of 2025 aims to provide a tax credit for working family caregivers. This credit is designed to offset the costs associated with caring for qualified family members with long-term care needs. The bill amends the Internal Revenue Code of 1986 to introduce a new tax credit, Section 25F, specifically for working family caregivers.
Expected Effects
The act would allow eligible caregivers to claim a credit equal to 30% of qualified expenses exceeding $2,000, with a maximum credit of $5,000. This credit is subject to income-based phase-outs and specific requirements for both the caregiver and the care recipient. The changes would apply to taxable years beginning after December 31, 2024.
Potential Benefits
- Provides financial relief to working family caregivers.
- Recognizes the economic value of caregiving.
- Encourages families to provide care at home, potentially reducing the burden on institutional care facilities.
- Offers a tax benefit that could improve the financial stability of eligible families.
- Supports individuals with long-term care needs by incentivizing family care.
Potential Disadvantages
- The credit is subject to income limitations, potentially excluding some caregivers.
- The $2,000 expense threshold may be difficult for some families to meet.
- The maximum credit of $5,000 may not fully cover the costs of caregiving for some families.
- Complex eligibility requirements could create administrative burdens and confusion.
- Potential for fraud or abuse in claiming the credit.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the General Welfare Clause (Article I, Section 8) of the Constitution, which allows Congress to enact laws that provide for the well-being of the nation. By providing tax credits for family caregivers, the bill aims to support families and individuals with long-term care needs, promoting their welfare. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).