Provides gross income tax credit to qualified caregivers for care and support expenses incurred for qualifying senior parent.
Impact
This bill aims to alleviate the financial burden faced by caregivers in New Jersey by providing a direct tax credit for the costs associated with caregiving. By defining 'qualified care and support expenses' broadly to include various necessary services like home health care, adult day care, and assistive devices, the legislation ensures that caregivers have support for a wide range of situations. The tax credit is also refundable, which means that caregivers will receive a refund if the credit exceeds their tax liability, thus making it accessible to those caring for seniors, even if they have lower incomes.
Summary
Assembly Bill A5776 proposes to establish a gross income tax credit designed for qualified caregivers who incur expenses related to the care of a qualifying senior parent. Specifically, this tax credit allows a caregiver to claim an amount up to $10,000 each taxable year based on qualified care and support expenses incurred during that year. Notably, qualified caregivers can claim this credit in addition to any dependent deduction received for claiming their senior parent as a dependent on their tax returns, which potentially increases the financial relief available through this legislation.
Contention
Discussion around A5776 may bring up points of contention regarding its fiscal implications. Critics may argue about the potential lost revenue for the state due to the tax credit, while supporters will likely emphasize the growing need for support systems for caregivers due to the aging population. There might also be debates on the eligibility criteria for 'qualifying senior parents' and whether the definitions adequately encompass all potential situations caregivers face. Overall, the framework of the bill seeks to address the gap in affordable caregiving while balancing state revenue concerns.
Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.
Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.
Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.
Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.
Provides gross income tax credit for certain homeschooling expenses incurred by parent or guardian with increased credit for taxpayers homeschooling child or dependent with special needs.
Provides gross income tax credit for certain homeschooling expenses incurred by parent or guardian with increased credit for taxpayers homeschooling child or dependent with special needs.
Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.
Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.
Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.
Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.