The Senior Accessible Housing Tax Credit Act of 2026 creates a new tax credit for individuals aged 60 or older to help cover the costs of home modifications that improve accessibility. This credit allows eligible taxpayers to claim up to $10,000 for expenses related to installing features such as wheelchair ramps, widened doorways, grab bars, and other safety improvements. The benefit is subject to income limits, where the credit amount decreases as a taxpayer's modified adjusted gross income exceeds specific thresholds ranging from $100,000 to $200,000 depending on filing status. The law also prevents taxpayers from receiving other tax benefits for the same expenses and requires the credit amount to be adjusted for inflation starting in 2028.
The AGE Act of 2026 creates a new tax credit to help taxpayers cover the costs of caring for elderly relatives who are at least 65 years old and need assistance with daily living. This credit allows individuals to claim up to $6,000 per year for expenses such as medical care, adult day services, personal care, respite care, and home modifications, provided the care recipient is a parent, grandparent, or other household member. The amount of the credit decreases by one percentage point for every $4,000 that a taxpayer's income exceeds $120,000, and the benefit is reduced if the taxpayer already uses a dependent care assistance program. To qualify, taxpayers must report the names, addresses, and taxpayer identification numbers of both the care providers and the elderly individuals they are supporting on their tax returns.
The ACCESS Act expands Medicaid coverage to include services in assisted living facilities for individuals who currently require nursing home-level care, provided they meet state income and resource limits. This change aims to lower costs by ensuring that the average expense for these residents does not exceed the cost of their care in a hospital or nursing facility. Additionally, the bill allows the Low-Income Housing Tax Credit to be used for projects that reduce long-term medical costs for the elderly by offering care in non-institutional settings. These provisions are scheduled to take effect on January 1, 2027, with a grace period for states needing to update their legislation to comply.
This bill expands Medicaid coverage to include services in assisted living facilities for individuals who currently require hospital or nursing home care, provided they meet state income and resource limits. It also modifies the Low-Income Housing Tax Credit to give priority funding to projects that help reduce long-term medical costs for the elderly by offering care in non-institutional settings. Both changes are scheduled to take effect on January 1, 2027, allowing states time to update their laws and plans to comply with the new requirements.
HR 7610 creates a new $2,000 annual tax credit for adult children who provide care to elderly relatives living in the same household. To qualify, the caregiver must be 18+ (or 16+ emancipated), live with the relative for at least 6 months, and provide 10+ hours weekly of assistance with daily living tasks (like meal prep, managing money, or mobility). The elderly relative must be 55+, unable to perform key activities independently (such as bathing or shopping), and require care for at least 180 days. The credit phases out for single filers earning over $75,000 (or $150,000 for joint filers) and applies only to tax years beginning after December 31, 2026.
HR 2972, the EITC for Older Workers Act of 2025, removes the age limit preventing workers over 65 from claiming the Earned Income Tax Credit (EITC). It amends the tax code to eliminate the requirement that recipients must be "not attained age 65," directly affecting low-to-moderate income workers aged 65 and older who were previously ineligible. The change takes effect for tax years beginning after December 31, 2025, allowing these workers to access the credit for earned income. This is a direct policy change to expand eligibility under the existing EITC program.
This bill creates a $2,000 annual tax credit for adult children who live with and provide care to aging relatives meeting specific criteria. To qualify, the caregiver must be at least 18 (or 16 if legally emancipated), live with the relative for 6+ months, and provide 10+ hours/week of care, verified by a healthcare provider. The care recipient must be age 55+, unable to perform 1 activity of daily living and 3 instrumental activities (like meal prep or managing finances) without substantial help, requiring care for at least 180 days. The credit phases out for single filers earning over $75,000 ($150,000 for joint filers) and cannot be claimed alongside the existing child care credit.
