Credit for Caring Act of 2025

The Credit for Caring Act of 2025 creates a federal tax credit for family caregivers of elderly or disabled relatives. It allows eligible caregivers (with over $7,500 in earned income) to claim a credit equal to 30% of qualified caregiving expenses exceeding $2,000, capped at $5,000 per year. Qualified expenses include human assistance, home modifications, respite care, counseling, lost wages for unpaid time off, and transportation, all requiring certification from a licensed healthcare provider that the care recipient has long-term needs. The credit phases out for higher earners (over $75,000 single/$150,000 joint) and requires documentation of expenses and care recipient certification.