Do You Qualify for North Dakota's Caregiver Tax Credit?

North Dakotans who are caring for family members may qualify for the little-known Family Member Care Tax Credit and save as much as $4,000.

An estimated 68,000 residents serve as caregivers. The tax credit can help cover certain expenses, including home health agency services, personal care attendants and adult day care for those 65 and older or disabled.

To qualify, the family member being cared for must have an annual taxable income of less than $20,000, or $35,000 if married.

Qualified care expenses means adult day care, home health agency services, personal care attendant services, homemaker services, respite care, companionship services, and, to the extent they do not reduce your federal taxable income, medical expenses otherwise deductible for federal income tax purposes. For an expense to qualify, the qualifying service must be provided by an organization or person unrelated to the individual or the qualifying family member, and the expense must not be compensated for by insurance or a federal or state assistance program.

To claim the credit, complete ScheduleND-1FC and Schedule ND-1TC and include them with the North Dakota individual income tax return, Form ND-1.

North Dakota is one of five states with some version of a caregiver tax credit. Learn more about the Family Member Care Tax Credit on the N.D. Tax Department's website.

Find more information and resources on caregiving, including AARP's Prepare to Care guides, at aarp.org/caregiving.