Family caregiver; creates a nonrefundable income tax credit for taxable years 2024 through 2028.
If enacted, HB1078 would significantly alter the financial landscape for families caring for aging or disabled relatives. By offering a tax credit, the bill underscores the state's recognition of the economic burden placed on caregivers, aiming to alleviate some of the financial pressures associated with caregiving duties. This move may encourage more individuals to take on caregiving roles by partially compensating for their out-of-pocket costs, potentially leading to better outcomes for caregivers and care recipients alike.
House Bill 1078 proposes the establishment of a nonrefundable income tax credit for family caregivers in the state of Virginia. The bill aims to assist individuals who provide care to eligible family members who require help with activities of daily living (ADLs) such as bathing, dressing, and feeding. The credit would apply to the taxable years 2024 through 2028, enabling caregivers to claim a tax credit of 50% on qualifying expenditures up to a maximum of $1,000. Eligible expenses include home modifications, equipment purchases, and hiring home care aides.
Notable points of contention surrounding HB1078 include the limitations imposed by the bill, such as the income thresholds for eligibility – caregivers must earn less than $100,000 (or $200,000 for married couples). Some advocates argue that these income thresholds may exclude middle-income families who still face significant caregiving costs. Additionally, while the nonrefundable nature of the tax credit means that it cannot reduce tax liabilities below zero, thereby limiting its utility for those with lower tax burdens, critics may view this as a missed opportunity to provide broader support for all caregivers, regardless of their financial standing.