No tax credit for caregivers in Trump’s megabill

As a 2024 presidential candidate, Donald Trump said he would "support a tax credit for family caregivers who take care of a parent or a loved one." 

Trump's pledge was directed at an estimated 48 million caregivers in the U.S. AARP, an organization representing older Americans, estimates that family caregivers provide about $600 billion in unpaid labor annually, and that 61% also work either part-time or full-time. 

Trump's plan was seen as a counteroffer to a proposal by his opponent, then-Vice President Kamala Harris, which was to have Medicare cover in-home health care costs. Trump's plan would likely represent a smaller benefit to families than Harris' proposal would have, but it would also cost the federal government less.

Despite signing a large tax and spending bill on July 4 that included other tax breaks he'd campaigned on, the bill did not include a caregiver tax credit.

Already, under existing law, caregivers can benefit from some tax credits, but they're scattershot. 

Under the child tax credit, caregivers can receive up to $500 for providing caregiving for a child under 17 or a dependent adult. In addition, the child and dependent care credit enables caregivers to deduct up to 20% of the first $3,000 in expenses related to hiring professional care for a dependent.

Legislative efforts are under way in both chambers of Congress to enact a specific caregiver tax credit. Called the Credit for Caring Act, the legislation would provide a tax credit worth up to $5,000 for eligible working caregivers, by covering 30% of qualified expenses beyond $2,000.

Both chambers' bills have substantial bipartisan support and the influential AARP's backing. Still, neither has advanced through the legislative process. The House version has 51 cosponsors; the Senate version has seven. The Senate bill's lead sponsors are Shelley Moore Capito, R-W.Va., and Michael Bennet, D-Colo. The House bill's lead sponsors are Reps. Mike Carey, R-Ohio, and Linda Sanchez, D-Calif.

Despite frequently championing other campaign promises like ending taxation of tips, overtime pay and Social Security benefits as part of his push to enact his signature tax legislation, Trump has not weighed in on the pending caregiver credit bills. According to the Factbase archive of presidential speeches and remarks, the last time Trump referenced a caregiver credit was at a 2024 campaign rally in Gastonia, North Carolina, several days before he won the election.

The Credit for Caring Act remains in play in Congress, but it hasn't advanced yet. We rate this promise Stalled.

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