AARP Vermont Supports State Tax Credit to Support Family Caregivers

On April 16, AARP Vermont Associate State Director of Advocacy Colin Hilliard presented testimony to the Vermont House Ways and Means Committee in support of S.51. This bill would provide individuals who provide uncompensated care a refundable credit against their personal income tax liability valued up to $1,000 if certain income, familial, and time requirements are met.

S.51 would bring some financial relief to Vermont’s 70,000 unpaid family caregivers. Many family caregivers are balancing caregiver responsibilities with work and are paying care expenses out of their own pockets, averaging $7,200 a year, making it harder for them to afford groceries, pay bills, and save for the future. Vermont’s family caregivers provide 66 million hours of care every year, adding up to $1.23 billion in unpaid labor annually.

“Family caregivers need commonsense solutions that will save them time and money, and provide them with more support,” says Hilliard. “This tax credit would help working family caregivers continue providing essential care that keeps their older loved ones at home while stabilizing the workforce and economy.”

Family caregivers are the backbone of our nation’s long-term care system. They provide care ranging from bathing and dressing to paying bills to providing transportation. Although their assistance helps save taxpayers billions of dollars by delaying or preventing expensive nursing home care and unnecessary hospital stays, many family caregivers face significant out-of-pocket costs related to providing care.

Today, more than 1 in 3 Vermont voters 40-plus have experience as family caregivers, and 62% say they are at least somewhat likely to be an unpaid caregiver in their future, according to a 2023 AARP Vermont Voter Survey.

An unpaid caregiver tax credit would put money back into the pockets of hardworking family caregivers, helping them remain in the workforce and defray some of the costs they incur. It would also send a powerful message to family caregivers that their unpaid work is valuable and appreciated.

Resources for Family Caregivers
AARP offers free resources to help those caring for loved ones to help them navigate their role as a caregiver and provide more support.

· State Resource Guides: A resource guide tailored specifically to your home state to provide you with resources to meet you where you are.

· Caregiving Resources: Resources on caregiver life balance, financial and legal issues, care at home, health and more.

· 10 Tips for Family Caregivers: A list of ten tips to get started on your caregiving journey.

· Financial Workbook for Caregivers: A guide focused on health, housing and money management for caregivers.

· AARP Caregiving Community: An AARP online community where caregivers can talk with other caregivers and get answers from experts in the community

· AARP Facebook Group: A place to connect, share practical tips, offer support, and discuss family caregiving experiences.

· AARP Caregiving Support Line: A toll free-family caregiving line for those taking care of their loved ones.