Proposed Legislation for Caregivers
Proposed legislation would help caregivers with financial and day care aid.
June 25, 2007 — -- Recognizing that millions of Americans are caring for elderly relatives for free at some financial risk to themselves, members of Congress have proposed legislation over the years to try to help.
Most of the bills would grant tax credits of up to $3,000 a year to caregivers. The money would offset some of the out-of-pocket money people spend when they care for relatives, whether those relatives move in with them or remain in their own homes.
One bill proposes that if you quit your job to care for a relative, you would qualify for Medicare health insurance at age 55 instead of 65.
Another says that if you quit to become a caregiver, your Social Security payments, once you retire, would be based on your highest-earning years, even if those years occurred before you became a caregiver. That would make sure you wouldn't be penalized with smaller Social Security payments because you quit work or worked part time to become a caregiver.
But Congress hasn't passed any of the proposals in final form.
"Unfortunately, none of these pieces of legislation have a lot of traction," says Gail Hunt, CEO of the National Alliance for Caregiving, a non-profit group that represents unpaid caregivers.
"There is not a lot of interest in this administration in 'tax fixes,' or addressing issues through the tax system."
Last year, Congress did pass and President Bush signed the Lifespan Respite Care Act. But it hasn't been funded yet.
The bill would help train and support "respite care" sites, such as elder day care centers, which caregivers could use to get a break from their responsibilities. The goal is about $40 million in funding, says John Rother, policy director of AARP.
"It's pennies," Rother says, "but it might help some people."
Another bill proposes that a tax credit that already exists — the "dependent care credit" — be expanded so people who care for a person who doesn't live with them can still claim the credit. (Currently, you can claim a relative only if he or she lives in your home.)
