Originally published on 2/6/26

Caring for a loved one can be hard. Not only is it expensive, but it can also take a toll on the caregiver’s mental and physical health. To make matters even more stressful, many caregivers hold down a job while they’re taking care of someone else, leaving hardly any time for themselves. Congress has taken notice and has recently created the new Credit for Caring Act, which, if approved, would give caregivers a much-needed financial boost. To learn more about this piece of legislation, including when it could take effect, keep scrolling. 

What to know about the Credit for Caring Act

The Credit for Caring Act was introduced to The House of Representatives by Ohio representative Mike Carey, California representative Linda Sánchez, West Virginia Senator Shelley Moore Capito and Colorado Senator Michael Bennet back in March 2025. In the proposed legislation, caregivers across the country would receive a nonrefundable federal tax credit of up to $5,000 as long as they earned at least $7,500 in the taxable year and were caring for someone unable to perform at least two daily living activities—such as bathing or dressing.

“We know that families want to support their loved ones through illness, disability and aging in place. The Credit for Caring Act offers relief to caregivers, allowing them to prioritize their loved ones and worry less about the effects on their family budget,” Carey said in a statement. “This tax credit would offset costs American families have to bear to care for their loved ones and provides flexibility to care for them in the way that works best for their family’s situation.” 

Sánchez added,“Caring for both of my parents after they were diagnosed with Alzheimer’s has given me a personal understanding of the emotional, physical and financial challenges families face when caring for a loved one.” 

“Family caregivers—two-thirds of whom are women—often juggle work, family responsibilities and the time and financial demands of caregiving. The Credit for Caring Act will ease some of these challenges by providing much-needed financial relief through a tax credit for home care and adult day care,” she continued. 

How the Credit for Caring Act could help you

The Credit for Caring Act can help Americans by giving them extra money for necessities like groceries, food, transportation, doctors visits and even adult day care. 

“This crucial legislation offers much-needed financial relief for the invaluable contributions of family caregivers, who often sacrifice their own financial stability to care for loved ones, while juggling work and caregiving responsibilities,” AARP state Director Jenny Carlson said in a statement. “This act also represents a significant step toward supporting our aging population and ensuring that families can continue to provide high-quality care at home. It also benefits employers by reducing the financial strain on employees who balance work and caregiving responsibilities, leading to a more productive and engaged workforce. We urge Congress to pass this vital legislation, which will have a profound impact on the well-being of families, the economy, and the overall health of our communities.”

When will the Credit for Caring Act take effect? 

Currently, the Credit for Caring Act is still with the House of Representatives and the Senate, where it has been for 11 months. If both pass the bill, it will be sent to President Donald Trump’s desk, where he will sign it into law or veto it. 

As of publication there is no news on when any of those things could happen. 

“The Credit for Caring Act is a great tool to help ease the financial burden caregivers face, and I am proud to join with my colleagues in reintroducing this bill that aims to accomplish that,” Senator Capito said in a statement. “Like so many Americans, I helped care for both of my parents as they battled Alzheimer’s at the end of their lives, and therefore, I understand the emotional and physical toll it can take on individuals and families. By passing this bill, we can help caregivers focus more on their loved ones and less on how much it will cost them.”

Link to original: https://www.womansworld.com/life/money/credit-for-caring-act-5000-tax-credit-for-family-caregivers