A bill to amend the Internal Revenue Code of 1986 to establish a credit for adult child caregivers

Overview: Creates a federal tax credit of up to $2,000 for adult children or relatives providing unpaid care in a shared household. The new tax
credit is called the Multigenerational Home Caregiver Credit

Eligible Individual: TA U.S. citizen who is at least 18 years of age (or at least 16 years of age if legally emancipated), who resides with the care recipient for at least 6 months during the taxable year, and provides at least 10 hours per week of assistance with activities of daily living.

Qualified Relative: An individual who is a child, sibling or stepsibling, parent or stepparent, niece/nephew, uncle/aunt, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law to the eligible individuals. The qualified relative must be at least 55 years old and unable to perform at least 1 activity of daily living or 3 instrumental activities of daily living without substantial assistance from another
individual. They also must require at least 10 hours per week of assistance.

Limitations: The $2,000 credit is reduced by 1% of the excess of taxpayers’ income above $75,000 ($150,000 joint). The tax credit is only allowed for 1 taxpayer. The taxpayer can only take credit for 2 qualified relatives. Married individuals must file a joint tax return. This tax credit must be coordinated with child and dependent care credit.