Is there a tax credit for family caregivers?

Research highlights: There is no single, dedicated federal caregiver tax credit yet. The proposed $5,000 Credit for Caring Act would create one, but it is still a bill, not law.

In the meantime, caregivers can often use existing breaks: the $500 Credit for Other Dependents, the Child and Dependent Care Credit, a medical expense deduction and a dependent care FSA. A growing list of states, led by Oklahoma and Nebraska, now offer their own caregiver tax credits.

Related research: How to get paid to care for a family member | How many family caregivers are there? | How common is caregiver burnout? | How much does in-home care cost?

This article is informational and not tax advice. Tax rules and dollar limits change yearly and depend on your situation; confirm details with the IRS, your state or a qualified tax professional before filing.

Is there a tax credit for family caregivers?

Not a dedicated one, at least not at the federal level. Despite years of effort, Congress has not yet created a standalone tax credit just for family caregivers. The leading proposal, the Credit for Caring Act, would fill that gap, but it has not become law.

That does not mean caregivers are out of luck. Several existing tax breaks can offset caregiving costs, from claiming a parent as a dependent to deducting medical expenses. They were not designed for caregivers specifically, but they apply.

And the landscape is shifting at the state level. A handful of states have passed their own caregiver tax credits in the last few years, with more considering it. We break down each option below.

Tax break	What it offers
Credit for Other Dependents	$500 per qualifying dependent
Child and Dependent Care Credit	20% to 50% of eligible care costs
Medical expense deduction	Costs above 7.5% of adjusted gross income, if itemizing
Dependent care FSA	Pretax dollars for care expenses
State caregiver credits	Up to $2,000 to $3,000 in some states
Credit for Caring Act	Proposed $5,000 credit (not yet law)

What is the $5,000 Credit for Caring Act, and has it passed?

The Credit for Caring Act is the bill most people mean when they ask about a caregiver tax credit. It would create a new, nonrefundable federal credit worth up to $5,000, equal to 30% of qualified caregiving expenses that exceed $2,000 in a year.

To qualify, a caregiver would need earned income above $7,500 and would have to pay care expenses for a spouse or relative whose long-term care needs are certified by a licensed health professional. Higher earners would see the credit reduced or phased out.

Has it passed? No. It was reintroduced in March 2025 in both the House and Senate, where it sits in committee with bipartisan support and backing from AARP.

It has been introduced repeatedly since 2016 without becoming law, so treat it as pending, not available.

Credit for Caring Act (proposed)	Detail
Maximum credit	$5,000 (nonrefundable)
Formula	30% of qualified expenses over $2,000
Caregiver earned income required	Above $7,500
Current status (2026)	In committee, not law

Can you claim a parent as a dependent?

Often, yes. If you support an aging parent, you may be able to claim them as a qualifying relative, which unlocks the $500 Credit for Other Dependents. That credit was made permanent by the 2025 tax law, so it is here to stay.

Two tests matter most. First, your parent’s gross income must be under $5,200 for 2025, and helpfully, nontaxable Social Security does not count toward that limit. Second, you must provide more than half of their total support for the year.

One caveat on that second test: although nontaxable Social Security stays out of the gross-income limit, any Social Security your parent spends on their own support does count when you figure whether you covered more than half of their total support.

A useful detail: your parent does not have to live with you to be claimed. Unlike most dependents, a parent can qualify while living in their own home or even in assisted living, as long as the income and support tests are met.

Claiming a parent as a dependent (2025)	Requirement
Parent’s gross income	Under $5,200; nontaxable Social Security excluded, taxable benefits count
Support you provide	More than half their total support
Living arrangement	Parent need not live with you
Credit	$500 Credit for Other Dependents

What other federal tax breaks can caregivers use?

Start with the Child and Dependent Care Credit. If your relative is physically or mentally incapable of self-care, lived with you more than half the year and you paid for care so you could work, you can claim 20% to 50% of up to $3,000 in expenses for one person ($6,000 for two).

That top rate used to be 35%. The 2025 tax law, the One Big Beautiful Bill Act, raised it to 50% starting in 2026, while keeping the same $3,000 and $6,000 expense caps.

Next, the medical expense deduction. If you itemize, you can deduct unreimbursed medical costs above 7.5% of your adjusted gross income, and you can include qualifying expenses you paid for a dependent, including many long-term care services.

Finally, a dependent care FSA lets you set aside pretax dollars for a dependent’s care so you can work, capped at $5,000 in 2025 and rising to $7,500 in 2026.

You cannot use the same expenses for both the FSA and the care credit.

Federal break	Value	Key rule
Child and Dependent Care Credit	20% to 50% of $3,000 to $6,000	Care must let you work
Medical expense deduction	Costs above 7.5% of adjusted gross income	Must itemize
Dependent care FSA	$5,000 (2025); $7,500 (2026)	Pretax, work-related care

Which states offer caregiver tax credits?

A few states have moved ahead of Congress. Oklahoma passed the first expansive caregiver tax credit, effective in 2024, worth 50% of eligible expenses up to $2,000, or $3,000 if the loved one is a veteran or has dementia. Income caps apply.

Nebraska followed with its Caregiver Tax Credit Act, effective for 2025, using a similar structure and requiring an application with the state revenue department. Both credits are nonrefundable and target middle-income caregivers.

Several other states offer caregiver-related credits, though terms vary widely, including Georgia, Missouri, New Jersey, North Dakota and South Carolina. Montana had one too but repealed it after the 2021 tax year.

Because rules and funding caps differ, check your own state’s revenue department for current details.

State caregiver tax credits	Detail
Oklahoma (Caring for Caregivers)	50% of expenses, up to $2,000 ($3,000 veterans/dementia)
Nebraska (Caregiver Tax Credit Act)	Nonrefundable credit, effective 2025, application required
Other state examples	GA, MO, NJ, ND, SC and others (terms vary)

Sources & additional resources

• U.S. Congress. “Credit for Caring Act of 2025 (H.R. 2036).” Congress.gov.
• U.S. Congress. “Credit for Caring Act of 2025 (S. 925).” Congress.gov.
• Internal Revenue Service. “Topic No. 602, Child and Dependent Care Credit.” IRS.gov.
• Internal Revenue Service. “Publication 503, Child and Dependent Care Expenses.” IRS.gov.
• Internal Revenue Service. “Publication 501, Dependents, Standard Deduction, and Filing Information.” IRS.gov.
• Internal Revenue Service. “Child Tax Credit and Credit for Other Dependents.” IRS.gov.
• Internal Revenue Service. “Topic No. 502, Medical and Dental Expenses.” IRS.gov.
• H&R Block. “One Big Beautiful Bill: Family Tax Credit Changes.” H&R Block Tax Center.
• FSAFEDS. “Dependent Care FSA.” FSAFEDS.
• Internal Revenue Service. “Publication 15-B, Employer’s Tax Guide to Fringe Benefits.” IRS.gov.
• Oklahoma House of Representatives. “Caring for Caregivers Act Takes Effect.” Oklahoma House of Representatives.
• Oklahoma Tax Commission. “Form 592, Caring for Caregivers Tax Credit.” Oklahoma.gov.
• Nebraska Department of Revenue. “Caregiver Tax Credit Act.” Nebraska DOR.
• AARP. “State Caregiver Tax Credits.” AARP LTSS State Scorecard.
• Office of the Assistant Secretary for Planning and Evaluation. “Review of Federal and State Caregiver Tax Credit Laws and Bills.” ASPE, U.S. Department of Health and Human Services.

For families reviewing caregiver tax credits, dependent care costs and long-term support options, CARE Homecare provides flexible in-home help for older adults across Los Angeles and Orange County. Care plans can include help with daily routines, companionship, mobility, meals, transportation and medication reminders. Families planning around care expenses can also explore CARE Homecare’s home care resources for families for practical guidance on support at home.