S. 4647: Americans Giving Care to Elders Act of 2026

This bill, known as the Americans Giving Care to Elders Act of 2026 (AGE Act of 2026), proposes changes to the Internal Revenue Code to provide a tax credit for individuals who incur expenses related to the care of elderly family members. Here are the key components of the bill:

Overview of the Tax Credit

- **Eligibility**: The credit applies to individuals who are caring for one or more qualifying individuals (elderly family members). - **Amount of Credit**: The tax credit is set at 20% of the eldercare expenses incurred by the taxpayer, with conditions based on income level. Specifically, the percentage decreases by 1% for every $4,000 that a taxpayer's adjusted gross income exceeds $120,000.- **Limit on Eldercare Expenses**: A maximum of $6,000 per taxable year can be claimed for eldercare expenses. - **Additional Rules**: If the taxpayer receives other deductions or credits for eldercare expenses, this credit cannot be used for those same expenses.

Definitions

- **Qualifying Individual**: A qualifying individual is someone who is at least 65 years old, requires assistance with daily activities, and is related to the taxpayer, such as a parent or grandparent, or lives in the same household as the taxpayer.- **Eldercare Expenses**: This includes costs for: - Medical care - Lodging away from home - Adult day services - Personal care - Respite care - Assistive technologies - Environmental modifications for better living conditions - Counseling or training for caregivers

Requirements and Limitations

- **Payments to Relatives**: The credit cannot be claimed for any payments made to individuals for whom the taxpayer can claim a deduction as a dependent.- **Service Provider Information**: To claim the credit, taxpayers must provide the name, address, and taxpayer identification number of the individuals or organizations providing care services.- **Documentation**: Taxpayers must include the taxpayer identification number of the qualifying individual to receive the credit.

Execution Timeline

- The provisions of this bill would take effect for taxable years beginning after the bill is enacted.

Summary

In simple terms, this bill aims to support individuals who pay for the care of elderly family members by providing a tax credit of 20% on their qualifying expenses, with limits based on the total amount of expenses incurred and the taxpayer's income level.

Relevant Companies

None found.