AARP Eye Center
The president has signed into law an AARP-backed bill that requires the federal government to develop a strategy to support the 40 million Americans who care for a loved one.
The measure — the Recognize, Assist, Include, Support and Engage (RAISE) Family Caregivers Act — directs the Department of Health and Human Services (HHS) to create an advisory council charged with making recommendations on the strategy to support family caregivers. The blueprint, which must be developed within 18 months, would address financial and workplace issues, respite care and other ways to support caregivers.
AARP worked closely with the bill’s sponsors to develop the legislation and with lawmakers to get the measure passed in an effort to help the nation’s family caregivers. “Family caregivers are the backbone of our care system in America,” said Nancy A. LeaMond, AARP’s chief advocacy and engagement officer. “We need to make it easier for them to coordinate care for their loved ones, get information and resources and take a break so they can rest and recharge."
Every year, family caregivers provide about 37 billion hours of unpaid help for their loved ones. Caregivers often are responsible for managing a loved one’s medications and other health needs, as well as preparing meals and doing housework. Many provide this care while working full time and raising their own families. About 32 percent of family caregivers provide at least 21 hours of care a week.
Continued Fight:
Family caregivers across the country provide an incredible labor of love for their spouses, parents, siblings, and others every day. There is a need for a caregiver tax credit to support families struggling with the financial challenges of at-home caregiving.
In 2016, the average family caregiver spent almost $7,000 on out of pocket costs – all to help their loved ones remain at home and in their communities – where they want to be. However, we know that out of pocket costs vary.
According to a 2016 AARP report:
- African American/Black family caregivers spent $6,600.
- Hispanic/Latino caregivers spent about $9,000.
- Asian American and Pacific Islander family caregivers spent almost $3,000.
- Long-distance caregivers spent almost $12,000.
- Those caring for adults with dementia spent over $10,000.
That’s why AARP is fighting to make life a little bit easier for unpaid family caregivers and ease their financial concerns.
A Tax Credit for Family Caregivers
At the state level, AARP is advancing a model caregiver tax credit bill, which is one step to alleviate some of the financial challenges that family caregivers face.
Our model bill proposes:
- A credit of 50% of eligible expenses up to $1,000;
- A broad definition of eligible expenses that includes improvements to the home, purchase of equipment to assist the care recipient, or other goods, services, and supports, like home care aides, respite care, and assistive technology;
- To benefit family caregivers who earn less than $75,000 for an individual/$150,000 for a couple and are related to the care recipient; and
- To help qualified care recipients 18 years or older who need assistance with at least one Activity of Daily Living (ADL).
Where Does Your State Stand
Currently, the Arizona, Massachusetts, New Jersey, and Wisconsin state legislatures are considering new tax credit bills. In Maine, Ohio, and New York, AARP state offices continue to push the issue forward.
All family caregivers deserve to feel financially secure as they continue to provide love and support to their loved ones. Caregivers should not have to worry about rising out of pocket costs for therapies, medical equipment, home modifications, and other supports while they focus on aiding their loved ones.
To stay up to date on our work in your state, and nationwide, sign up for our e-alerts AARP Advocates e-newsletter, or visit AARP New Jersey’s Facebook page: www.facebook.com/AARPNJ
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