Tax Credit Could Help Family Caregiving

By Sarah Hollander

Four years ago, Cindy Byington converted her Columbus dining room into a bedroom so her mother, Josephine, 91, could move in. Her mom is still pretty self-sufficient, but she needs a special diet, higher than normal heat, rides to appointments and other daily care.

“I love having my mom with me,” said Byington, a senior ad agency account manager. “But practically speaking, whether it’s a child or a parent, caring for someone just costs more.” She welcomes any assistance.

Byington, 59, is one of an estimated 1.5 million Ohio family members and friends caring for older people. During the legislative session starting this month, AARP Ohio plans to push for a caregiver tax credit in the two-year budget.

Other priorities include protecting Medicaid expansion, creating a state-backed retirement savings option for employees of small businesses and guarding against utility rate hikes.

A tax credit could help care­givers deal with out-of-pocket expenses including home care, transportation, medical costs and physical improvements, such as building a wheelchair ramp.

The costs of caregiving add up quickly, said Larke Recchie, CEO of the Ohio Association of Area Agencies on Aging. Federal, state and local resources exist but are limited, she added.

“The amount of energy caregivers put out there is huge,” Recchie said. “And the amount of money required can make or break whether they can actually do this and make it feasible.”

Impact on public services
As the state population grows older, a tax credit might be cheaper for the state in the long run, according to Shahla Mehdizadeh, a senior research scholar for the Scripps Gerontology Center at Miami University.

Without volunteer caregiving, Ohioans needing assistance rely more heavily on costly public services.

“A tax credit wouldn’t change the demographics,” Mehdizadeh said. “But it might encourage some people who think ‘I can’t do this’ [provide care] to take it on.”

AARP Ohio is also keeping an eye on the state’s Medicaid expansion, with state costs likely to come under review this year. Ohio expanded eligibility for Medicaid coverage in 2014 as part of the federal Affordable Care Act. Since then, more than 710,000 people have gained insurance coverage under the program.

A proposal to save taxpayer money by requiring some recipients to contribute toward their coverage was shot down by the federal government last year as an impediment to health care coverage for the poor.

“We strongly support keeping what we have now,” said Trey Addison, AARP Ohio associate state director. “Hundreds of thousands of people have been able to access health care because of this change.”

Ohio also needs to encourage retirement savings, Addison said. AARP Ohio will push for a “work and save” option for employees who aren’t offered a 401(k), pension or other retirement plan at work. Small-business owners often find private programs too cumbersome or expensive to set up.

At least seven states have already approved such plans.

To become a legislative volunteer, email ohvolunteers@aarp.org or call 866-389-5653 toll-free. For legislative updates, go to the AARP Ohio blog at aarp.org/oh.

Sarah Hollander is a writer living in Cleveland.