Income Tax - Caregiver Tax Credit
If enacted, SB660 would introduce a caretaker tax credit that could significantly alleviate the financial burden on families providing in-home care. The credit is set at 30% of qualified expenses that exceed $2,000, with a maximum allowable credit of $5,000 or the amount of the state income tax owed. This initiative is particularly crucial for families facing high costs associated with long-term care for elderly or disabled relatives, promoting a policy that supports the health and independence of such individuals.
Senate Bill 660, known as the Income Tax - Caregiver Tax Credit, aims to provide financial relief for caregivers who incur expenses while supporting qualifying family members. This legislation allows eligible caregivers to claim a credit against their state income tax for certain qualified expenses paid during the taxable year. These expenses can include modifications to the caregiver's home, equipment purchases, hiring home aides, and costs associated with adult day care, among others.
Despite its benefits, the bill may still face discussions regarding its eligibility limitations. For example, caregivers must have a federal adjusted gross income below $75,000 (or $150,000 for joint filers) to qualify, which could be seen as restrictive. Additionally, some argue that the focus on tax credits may not adequately address the broader systemic issues related to caregiving. Opposition may arise around whether the bill provides adequate support for all caregivers, especially those from lower-income backgrounds who may still struggle despite potential credits.