MW These proposed tax cuts and benefits could help caregivers in crisis - if they can get through Congress

By Jessica Hall

Caregivers face a 'dire need' for financial help

The financial burden of caring for ailing loved ones could be eased through two bipartisan legislative proposals introduced this week.

One proposal, which aims to create federal catastrophic long-term care insurance, is called the WISH Act, or the Well-Being Insurance for Seniors to be at Home Act. It was proposed by Reps. Thomas Suozzi, D-N.Y., and John Moolenaar, R-Mich.

Meanwhile, a second proposal called the Credit for Caring Act would provide a tax credit of up to $5,000 to help families offset caregiving costs. That proposal was introduced in the House by Reps. Mike Carey, R-Ohio, and Linda Sánchez, D-Calif., and proposed in the Senate by Shelley Moore Capito, R-W.Va., and Michael Bennet, D-Colo.

"There's a big storm coming in our country: 10,000 people are turning 65 every day, and in five years, 6,500 seniors will turn 80 every day," Suozzi said this week in a press briefing about the WISH Act. "Some people live much longer than expected and they need help with activities of daily living."

Suozzi, who said his four grandparents lived with his family growing up, said there are not enough caregivers to help the aging population as families live far apart and nursing homes have a bed shortage.

"If we don't do anything, we'll have a major problem on our hands," Suozzi said.

Footing the bill on your own is costly. In 2023, the median yearly cost of a home healthcare aide was $75,504 and a private room in a nursing home was $116,800, according to Genworth Financial.

Suozzi said the long-term-care insurance sector has not been able to offer a reasonable product for the middle class due to lack of awareness, limited coverage and a history of premium increases. As a result, middle-class Americans face high medical expenses that force them to spend down their savings and become destitute before qualifying for Medicaid. Having greater long-term care insurance coverage would lessen the burden on Medicaid, he said.

Read: Opinion: Why the Medicaid 'chainsaw' will come for your home

The WISH Act would help people who need assistance with at least two activities of daily living, such as dressing, bathing, feeding or using the bathroom. Beneficiaries would receive a monthly benefit of about $4,000 for about six hours of daily, paid personal care. The benefits would kick in sooner for those with lower earnings, with a longer waiting period for those with higher earnings. Waiting periods would range from one year to five years.

Suozzi originally wanted to pay for the costs through a payroll tax, but said such a move isn't realistic in the current political environment. So, the bill does not yet have a funding source.

"There's a dire need that exists," Suozzi said.

Tax credit for caregivers

Meanwhile, the Credit for Caring Act aims to help offset the costs families incur in providing care for loved ones, including expenses related to home-care aides, adult day care, home modifications and respite care. The proposal would provide up to a $5,000 federal tax credit for eligible working family caregivers.

On average, family caregivers spend more than $7,200 a year of their own money on out-of-pocket expenses when providing care, according to AARP.

"America's family caregivers put family first, helping their parents, spouses and others stay at home," Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer, said in a statement. "They spend thousands of dollars every year on this care, while juggling work and family responsibilities."

More than 48 million Americans are caregivers to aging parents, spouses and other loved ones, providing more than $600 million in unpaid labor, according to AARP. More than 60% family caregivers also work either full or part time, but many have had to cut back on work or leave their jobs, sacrificing income, retirement savings and financial security.

"Family caregivers play a critical role in the lives of their loved ones, often at a significant financial cost to themselves. They have to balance jobs and family responsibilities, and still make ends meet at the end of the month," Bennet said in a statement.

AARP said family caregivers provide help in delaying or avoiding costly institutional care for their loved ones. An AARP analysis estimated that if caregivers aged 50 and older received better workplace support, the U.S. GDP could grow by an additional $1.7 trillion in 2030.

A version of the tax-credit bill was introduced last year, but failed to make it out of committee. During the presidential campaign, however, Donald Trump supported the idea of a tax credit to help family caregivers.

-Jessica Hall

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March 13, 2025 16:34 ET (20:34 GMT)

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