Family caregiver; creates a nonrefundable income tax credit for taxable years 2024 through 2028.
Should SB419 be enacted, it would provide significant financial relief for family caregivers throughout Virginia, allowing them to claim a tax credit for a portion of their out-of-pocket expenditures. These eligible expenditures include costs associated with home modifications, medical equipment, and hiring assistance for caregiving tasks. By offering this tax credit, the bill aims to facilitate smoother caregiving experiences while enhancing the overall well-being of eligible family members. Additionally, caregivers' federal adjusted gross income must not exceed $100,000, targeting support to those likely to benefit the most.
Senate Bill 419 introduces a nonrefundable income tax credit specifically designed for family caregivers who incur expenses related to the care of eligible family members. This bill is set to take effect for taxable years from 2024 through 2028, providing a credit of 50% on qualified expenditures, up to a maximum of $1,000. The legislation acknowledges the growing financial burden on family caregivers, particularly those supporting individuals requiring assistance with activities of daily living (ADLs). The intention behind this bill is to reduce some of the economic challenges faced by caregivers, enabling them to maintain their loved ones' dignity and independence at home.
Notably, there may be discussions around the limitations of the credit. Being nonrefundable means that caregivers can only benefit to the extent of their tax liability, which could be advantageous or punitive depending on individual circumstances. Critics may argue that the bill's income thresholds could exclude many caregivers who require support yet do not fall within the financial parameters set forth. Furthermore, questions may be raised regarding the implementation of guidelines by the Tax Commissioner and how effectively they can support caregivers in claiming these credits without adding to their administrative burdens.