H.R. 7610: To amend the Internal Revenue Code of 1986 to establish a credit for adult child caregivers.

This bill aims to create a new tax credit called the "Multigenerational Home Caregiver Credit," which would offer financial support to individuals who care for older relatives living in their homes. Here are the main points of the bill:

Credit Amount

The bill proposes a tax credit of $2,000 for each eligible individual who is classified as a "qualified relative" receiving care from the caregiver. This credit would reduce the taxes owed by the caregiver for that taxable year.

Eligibility Requirements

The following criteria must be met for an individual to qualify for the tax credit:

• The caregiver must be at least 18 years old, or 16 years old and legally emancipated.
• The caregiver must be a U.S. citizen.
• The caregiver must have lived with the qualified relative for at least six months during the taxable year.
• The caregiver must provide at least 10 hours of assistance per week to the qualified relative.
• The caregiver must submit a signed statement from a licensed healthcare provider confirming the qualifying status of the relative.

Qualified Relative Definition

A "qualified relative" is someone who:

• Is related to the caregiver or their spouse, such as a parent, grandparent, sibling, or in-law.
• Is aged 55 or older.
• Has difficulty performing at least one activity of daily living (like dressing, bathing, or eating) and requires assistance for such activities for at least 10 hours weekly.
• Has experienced this need for help for at least 180 days or for the individual’s lifetime, whichever is shorter.

Limitations

The proposed credit comes with several limitations:

• The credit amount will be reduced by 1% for every $1,000 that the caregiver's adjusted gross income exceeds $75,000 (or $150,000 for joint filers).
• Only one taxpayer can claim the credit for each qualified relative in a tax year.
• A maximum of two qualified relatives can be claimed for the credit per tax year.
• Married couples must file jointly to qualify for the credit.
• The credit amount may be further reduced if the caregiver qualifies for any other dependent care credits.

Effective Date

If enacted, the provisions of this bill would apply to taxable years beginning after December 31, 2026.

Findings Supporting the Bill

The bill is based on several findings related to the benefits of multigenerational living arrangements. Such arrangements are associated with:

• A reduced need for formal care assistance.
• Lower rates of depression and isolation among older adults.
• A significantly reduced risk of nursing home placement for older adults living with their adult children.

Relevant Companies

None found.