Proposed elder care tax credit could help Iowa families

(The Center Square) – The head of the Iowa CareGivers said the Americans Giving Care to Elders (AGE) Act may benefit hundreds of thousands of family members who care for their elderly loved ones at a cost to their own physical and mental well-being.

Rep. Cindy Axne (D-IA), Rep. Jan Schakowsky (D-IL), and Rep. David McKinley (R-WV) unveiled legislation to provide up to $1,200 in tax credits for Americans who are caring for their older family members to help cover the costs of that care, her website said.

“Family caregivers must often rely on the outside help of home care or hospice aides or nurses. Iowa, along with the rest of the country, is facing serious workforce shortages which can also increase burden on family caregivers,” Di Findley, executive director and founder of Iowa CareGivers told The Center Square.

Axne argues her bill would provide some relief to this workforce.

“These caregivers are helping with medications, medical tasks, and daily living assistance all out of their own pocket. My bipartisan bill would provide a critical lifeline to folks who are caring for a parent or relative while balancing the demands of their own careers and lives,” Axne said on her website.

However, Findley argued that Axne and others need to do more such as prioritizing stability to health and long-term services, as well as providing support to the workforce. That can be accomplished by working to increase wages, giving these workers access to paid leave and other benefits, she noted.

“The American Rescue Plan Act dollars, the President’s infrastructure bill and other plans, if used appropriately, can have a huge impact in this area,” Findley said.

Approximately 300,000 Iowans identify themselves as family caregivers, but the number is probably much higher as many don’t think of themselves like that, Findley said. She said they “provide the lion’s share of caregiving.”

Many of them still work and have children of their own to raise.

The AGE Act could help cover the cost of a caregiver to give a break from what can become 24/7 caregiving, which is important to their own physical and mental well-being, Findley said.

The $1,200 tax credit probably isn’t enough considering family caregivers save the system money by keeping their family members out of nursing homes who would rely on Medicaid to pay for their placement.

“If a caregiver is forced to reduce hours at work and experience a significant loss in income, then that wouldn’t begin to compensate for the loss. Some spend personal income to modify their homes to be more accessible when moving a parent or grandparent into their homes. But the tax credit is a start,” Findley said.

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