Tax credit for working family caregivers—but only if you earn enough.

What it does

This bill creates a new federal tax credit for working adults who provide unpaid care for family members with long-term care needs (children, elderly relatives, spouses, or others with disabilities). The credit covers 30% of qualifying caregiving expenses above $2,000 per year, up to a maximum $5,000 credit, and phases out for higher-income households. Eligible expenses include respite care, home modifications, assistive devices, lost wages from unpaid time off, and direct care worker costs.

Why we flagged it

The bill's sole operative mechanism is a refundable tax credit for working family caregivers. It directly addresses the financial burden of unpaid caregiving through the tax code, with no riders or hidden provisions.

What the text implies

• Credit is available only to caregivers with earned income above $7,500, excluding non-working spouses or those with very low income—potentially leaving the poorest caregivers without relief.
• Requires certification by a licensed health care practitioner within 39.5 months of filing; caregivers without access to such practitioners or documentation may be unable to claim the credit despite incurring expenses.
• Phase-out begins at $75,000 AGI (single) / $150,000 (joint), meaning middle-class caregivers in high-cost-of-living areas may lose eligibility despite significant caregiving burdens.
• Credit is non-refundable (reduces tax liability only), so caregivers with low tax liability may receive little or no benefit despite high caregiving costs.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Working family caregivers—disproportionately women—face significant out-of-pocket costs and lost wages while providing essential care. This credit directly reduces their tax burden and acknowledges unpaid caregiving labor, improving their financial position. The phase-out ensures benefits flow primarily to middle-income households rather than the wealthy.

Who stands to gain

• working family caregivers (individuals)
• direct care workers (through increased demand for respite care and care services)

Named in the bill

Internal Revenue Service (IRS), Department of Health and Human Services (HHS), licensed health care practitioners, direct care workers

Where it stands

91 cosponsors: 46 Democrats, 45 Republicans.

• Mar 11, 2025 — Introduced · Congress.gov: “Introduced in House”
• Mar 11, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

19 lobbying clients named this bill on 28 disclosure filings across 3 quarters, Jun 2025 to Jun 2026. Those filings disclosed $11,035,538 in lobbying spend. A filing names 13 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 96% of bills with at least one filing.

Mike Carey, the sponsor, reported $1,809,017 in PAC receipts in the 2026 cycle.

• AARP — $5,300,000 on 1 filing
• Alzheimer's Association — $3,590,000 on 2 filings
• The Michael J. Fox Foundation for Parkinson's Research — $360,000 on 2 filings
• American Psychological Association Services Inc.(fka American Psychological Assn — $340,000 on 1 filing
• National Marrow Donor Program — $280,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.