Income tax, state; creates a nonrefundable credit for family caregivers.
If enacted, SB632 would amend the Code of Virginia to provide tangible financial relief to caregivers by enabling them to claim tax credits on specific expenses related to caregiving. These expenses can include modifications to a caregiver's home to enhance mobility for the family member, costs incurred for hiring in-home care aides, and other related caregiving services. The proposed credit aims to make it easier for caregivers to manage the financial strain associated with caregiving responsibilities, thus potentially improving their quality of life as well as that of their care recipients.
Senate Bill 632 introduces a nonrefundable tax credit specifically for family caregivers in Virginia. This legislation aims to alleviate some financial burdens incurred by individuals who provide care to eligible family members. To qualify for the credit, which amounts to 50% of eligible expenditures up to $1,000, the family caregiver must have an adjusted gross income below particular thresholds and must reside with the care recipient for a specified duration throughout the year. The eligible family member must require assistance with daily living activities and must be certified by a licensed medical professional.
Notably, the bill specifies that the credit is nonrefundable and can only be claimed against the caregiver's tax liability for the year, meaning that if the credit exceeds the tax owed, the excess can only be carried over for use in subsequent years. This aspect has been a point of discussion, as it may limit the immediate benefits for some caregivers, depending on their income and tax situation. The implementation details, such as guidelines to claim the credit by the Tax Commissioner, would need careful consideration to ensure access and ease of understanding for potential claimants.