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Indicator
State Caregiver Tax Credits
This new indicator measures implementation of relatively innovative state tax credit programs that offer family caregivers financial relief to offset the sizable out-of-pocket costs the overwhelming majority of family caregivers shoulder ($7,200 on average each year). Six states (Georgia, Missouri, Montana, New Jersey, North Dakota, and South Carolina) have caregiver tax credits that cover out-of-pocket expenses of taxpayers caring for family members age 18 or over who experience difficulty with at least one activity of daily living. Covered expenses may include installing home modifications to keep the care recipient mobile, safe, and able to continue living in the community; purchasing or leasing assistive devices and equipment to assist with activities of daily living; and hiring direct care workers.
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Methodology
Methodology
This innovation point gives states credit for providing tax credits for family caregivers’ out-of-pocket expenses.
Scoring:
- 1 point for states with a law that reflect the following provisions:
- Provides tax credits to cover out-of-pocket expenses of taxpayers caring for family members age 18 or over experiencing difficulty with at least one activity of daily living,
- Covered expenses include (not exclusive, but must include some of these items):
- home modifications to keep the care recipient mobile, safe, and able to continue living in community,
- purchase of lease of assistive devices and equipment to assist with activities of daily living
- hiring of direct care workers.
- 0 points for states that do not offer caregiver tax credits, or do not offer tax credits including the provisions above.
AARP review of existing state tax policy