Multigenerational Home Care Credit

Full Title:
To amend the Internal Revenue Code of 1986 to establish a credit for adult child caregivers.

Summary#

This bill would add a new federal tax credit for adult children (and similar relatives) who live with and help older family members who need daily assistance. The credit would be $2,000 per qualifying older relative, subject to limits and income phaseout, and it would start for tax years beginning after December 31, 2026. The bill’s stated goal is to support multigenerational care and reduce the need for paid long‑term care.

  • Creates a new "Multigenerational Home Caregiver Credit" worth $2,000 per qualified relative.
  • Sets caregiver rules: must be age 18 (or 16 if emancipated), a U.S. citizen, live with the relative at the same main home at least 6 months, provide at least 10 hours per week of care, and include a health‑care provider attestation.
  • Sets care recipient rules: must be age 55+, need help with at least 1 activity of daily living and 3 instrumental activities of daily living for at least 180 days, and require at least 10 hours per week of assistance.
  • Limits: income phaseout above specified thresholds, max 2 qualified relatives per taxpayer, only one taxpayer may claim each relative, married couples must file jointly, and the credit is reduced by any child and dependent care credit claimed for the same person.
  • Effective for tax years starting after December 31, 2026.

What it means for you#

  • Adult child caregivers and other relatives who live with an older person: You could claim a $2,000 tax credit per eligible older relative if you meet the age, citizenship, residency, hours-of-care, and attestation rules. You must provide at least 10 hours of assistance each week.
  • Older adults receiving care: If you are age 55 or older and meet the care‑need tests in the bill, a relative who lives with you and provides the required help could receive the credit.
  • Families with more than one possible claimant: Only one taxpayer can claim the credit for a given care recipient. If more than one family member qualifies, the credit goes to the family member with the highest adjusted gross income.
  • Married taxpayers: Couples must file a joint return to claim the credit.
  • Taxpayers with higher incomes: The credit amount is reduced once adjusted gross income exceeds $75,000 for single filers ($150,000 for joint filers).
  • Health care providers: A licensed health‑care provider must sign an attestation that the care recipient meets the medical/care requirements. This creates an added paperwork step for providers.
  • Tax preparers and IRS administration: The IRS would have to verify residency, hours of care, provider attestations, relationships, and income limits when processing claims.

Expenses#

No publicly available information.

  • The bill would likely lower federal revenue by the amount of credits claimed, but the text includes no fiscal estimate or budget note.
  • This could also create administrative costs for the IRS to set up claim forms, verify attestations, and resolve disputes, but the bill provides no cost estimates.
  • The attestation requirement could create time costs for licensed health‑care providers and additional paperwork for families.

Proponents' View#

  • The bill’s findings say living with adult children reduces need for formal care and can improve older adults’ mental and cognitive health.
  • The bill appears intended to encourage and support families to keep older relatives at home rather than move them to nursing homes.
  • Supporters may argue the credit helps cover unpaid care work and offsets some financial burdens on family caregivers.
  • The bill coordinates the definition of daily living activities with existing federal health programs to align standards.

Opponents' View#

  • One concern is cost: the bill would create a new tax expenditure but includes no estimate of the total federal cost.
  • The bill does not clearly explain how the IRS will verify hours of care or enforce the single‑claimant rule, which may increase fraud risk or disputes among family members.
  • The attestation by a licensed health‑care provider may be burdensome for providers and families, and the bill gives few details on the attestation’s form or penalties for false attestations.
  • The rules exclude non‑citizen caregivers and require joint filing for married claimants, which could leave some caregivers ineligible even if they provide care.
  • The $2,000 amount, cap of two relatives, and income phaseout may not cover the full costs or time commitments of caregiving for many families.
  • The bill refers to definitions in other laws (for example, activities of daily living), so some implementation details depend on later IRS guidance.