Last year the Credit for Caring Act was introduced in Congress. This act would give all caregivers a federal tax credit up to $3,000. This caregiver tax is the first of its kind and was eagerly awaited.
U.S. Representatives Tom Reed (R-NY) and Linda Sanchez (DC-A) introduced this measure. The act is intended to aid the caregivers with their out-of-pocket expenses. If you are caring for an aging, ill, or disabled relative, you know how big of a financial burden care can be. This tax also includes home health care, adult day care, respite care, and child care. It’s not like we are not satisfied with this act, but this is only the first step on a very long road.
It is not easy to be in a situation where you must care for elderly who is sick or disabled. But things in life happen, and this becomes your daily obligation. Family caregivers provide 37 billion hours of care annually. Unpaid hours! The estimated price of this service is $470 billion. Family member provide this care, but what if they didn’t? Who would?
According to a study. caregivers older than 50 who leave their jobs in order to care for a family member lose $304,000 in wages and benefits during their lifespan. All caregivers older than 50 combined, with their lost wages, pension, and Social Security benefits included, lose $3 trillion. The worse part of all of this is that people who leave their jobs in their mid-age to take care of their elderly parents end up in poverty when reaching the same age. The risk of this happening is extremely high, and no caregiver tax will change this in an instant.
And while we applaud that caregiver tax is now a thing, $3,000 won’t change anyone’s life. In the future, the figure needs to reach greater heights. No, it must; it’s what this country owes to its 40 million caregivers who take care of their relatives.
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