The Family Caregiver Tax Credit will alleviate some of the financial burdens faced by family caregivers, helping them to cover costs associated with caregiving duties. Eligible taxpayers can receive up to $5,000 annually, thus encouraging individuals to take on the caregiving role without incurring massive financial expenses. This credit can be claimed by relatives with a federal adjusted gross income of up to $75,000 or $125,000 for joint filers, which ensures that middle-income families can benefit from the program while providing care for family members in need.
Senate Bill 879 aims to establish a Family Caregiver Tax Credit in Hawaii, acknowledging the vital role of family caregivers in the state's long-term care system. The legislation recognizes that approximately 154,000 residents in Hawaii provide unpaid caregiving services, contributing significantly in terms of hours and financial value. The bill intends to provide financial relief by allowing eligible taxpayers to claim a refundable tax credit for out-of-pocket expenses incurred while caring for a non-dependent family member with impairments.
While the bill aims to support family caregivers, it may raise discussions regarding the adequacy of funding and support measures needed to address the growing demands of long-term care in Hawaii. Proponents argue that tax credits will help caregivers manage their costs, while critics may question whether this approach sufficiently addresses systemic issues such as access to formal caregiving services and the sustainability of a tax credit-based solution. The bill sets a precedent for recognizing the role of unpaid caregivers but may prompt conversations about broader policy measures to improve long-term care infrastructure within the state.