Income Tax – Credit for Caregivers of Senior Family Members
This bill reflects a growing trend in legislative focus on family caregiving and financial relief for those supporting aging relatives. It highlights the need for policy solutions that balance support for caregivers while ensuring responsible use of state tax revenues.
If enacted, the bill will modify the Maryland Tax Code by creating a new section that outlines qualifications for the credit, the types of expenses considered 'qualified,' and the process of claiming said credit. Eligible expenses may include various home care services, adult day care, and assistive devices among others. The maximum credit amount for caring for one senior family member would be up to $5,000, and for two or more, it could go up to $10,000. This shift could notably change the financial landscape for families caring for elderly members, potentially reducing reliance on state services.
House Bill 28 seeks to establish a tax credit for individuals caring for senior family members in Maryland. This bill allows taxpayers to claim a credit against the state income tax for expenses incurred in providing care for qualified senior family members aged 60 and above who reside with them. The intent is to alleviate some financial burdens for caregivers who manage the costs associated with such care, enabling seniors to stay at home longer while receiving necessary assistance.
During discussions regarding HB 28, there were concerns about the administrative burden on the Comptroller's office to monitor and regulate the eligibility and application processes associated with the tax credit. Additionally, there were differing opinions on whether the credits would effectively support families or merely serve as a temporary financial relief. Some lawmakers raised concerns about the fairness of the proposed measures, specifically regarding the definition of 'qualified expenses' and what constitutes adequate proof of caregiving, as this could open avenues for abuse or misinterpretation.