Double Dependents Relief Act

Overview: The bill creates a refundable tax credit equal to 30% of eligible caregiving expenses above $2,000 up to $10,000 annually. This helps
defray the out-of-pocket expenses incurred by family caregivers who are employed and also caregiving for a child and a spouse or other close family member with long-term care needs. The $10,000 cap will increase over time with inflation.

Eligible Caregiver: Eligible caregivers include individuals with earned income over $7,500 annually and who pay caregiving expenses for a dependent child.

Qualified Care Recipient: The qualified care recipient is the spouse or close family member of an eligible caregiver who has been certified by a licensed health care practitioner as being an individual with long-term care needs.

Qualified Expenses for Eligible Caregivers: Qualified expenses refer to goods, services, and supports that assist a care recipient with activities of daily living. This can include human assistance, supervision, cuing, and standby assistance, assistive technologies and devices, environmental modifications, health maintenance tasks, information, transportation, and coordination of services. Expenditures for respite care, counseling, support groups, or training, technologies that assist in caregiving, travel costs, and lost wages for unpaid time off due to caregiving are also qualified expenses.

Expenses covered by other tax credits or accounts cannot be double counted.

Phase Out Based on Adjusted Gross Income: The amount of the credit is reduced by $100 for each $1,000 by which the taxpayer’s adjusted gross income exceeds the threshold amount of $75,000 ($150,000 for a joint return.)