Rep. Sam Park Files Family Caregiver Tax Credit Act to Support Unsung Heroes

State Representative Sam Park today introduced the Family Caregiver Tax Credit Act, which aims to support the contributions of family caregivers in Georgia by increasing the cap on tax credits from up to $150 to up to $1,000 on caregiving expenses:

Family caregivers, people who tend to the needs of family members with short or long-term limitations due to illness, injury or disability, play an indispensable role by providing care and support to loved ones who need it most.

The Family Caregiver Tax Credit act would:

• Increase the tax credit cap from up to $150 to up to $1,000 on qualified caregiving expenses;
• Expand the scope of qualifying family members to include adults ages 18 and up;
• Expand the definition of qualified caregiving expenses that are eligible for a tax credit;
• Support caregivers’ well-being, who make personal and financial sacrifices to provide care and;
• Recognize the essential role caregivers play in Georgia’s healthcare system and communities.

“The Family Caregiver Tax Credit Act supports the invaluable contributions of family caregivers who make personal and financial sacrifices to provide care to their loved ones,” said Minority Whip Park. “Caring for my mother during her battle with terminal cancer showed me firsthand how crucial caregivers are. Caregivers play a vital role in preventing hospital readmissions, offering cost-effective home-based care, reducing emergency room visits and supporting preventive care — the Family Caregiver Tax Credit Act not only supports caregivers but also has the potential to save hospitals and taxpayers’ money in the long run.”

“Family caregivers are the backbone of our care system,” said Debra Tyler Horton, State Director for AARP Georgia. “They need commonsense solutions that will save them time and money and provide them with more support. By increasing the tax credit cap and expanding eligibility, Georgia can give family caregivers much-needed support.”

According to an AARP Public Policy Institute report, the economic value of the care provided by Georgia’s 1.26 million family caregivers is $16.3 billion per year, underscoring the contribution of caregivers in our communities. Many family caregivers make sacrifices and incur major costs while providing care for their loved ones:

• Lost wages and employment: 61 percent of caregivers are employed and many reduce work hours or leave jobs altogether to provide care, often resulting in lost wages and career opportunities;
• Out-of-pocket costs: Caregivers often incur care-related out-of-pocket expenses, like medical supplies, transportation and home modifications. Many also experience higher costs related to their own healthcare needs due to the physical and emotional toll of caregiving;
• Impact on retirement: Many caregivers may have to dip into retirement savings to cover expenses, leading to long-term financial challenges;
• Taxpayer costs: The economic impact of caregiving extends to the healthcare system and government programs. As Georgia’s population ages, the demand for caregiving services increases, putting pressure on hospitals and government programs like Medicaid.

According to AARP, about 48 million individuals provide unpaid care to an adult family member or friend spending on average $7,242 annually on care-related expenses. And, Forty-five percent of family caregivers have had at least one adverse financial impact due to their responsibilities, like incurring debt, leaving bills unpaid or sacrificing retirement savings.

The Family Caregiver Tax Credit Act would also expand eligibility for the tax credit to caregivers who care for family members ages 18 and up and require assistance with daily living activities as determined by a physician, physician assistant or nurse practitioner and qualify as a dependent of the qualifying family member. Previously, only caregivers tending to family members that were at least 62 years old and determined to be disabled could qualify, excluding many who care for family under that age.

Rep. Park highlights the importance of this change as illustrated by an example from an AARP report of a Georgia woman who serves as a caregiver for her disabled adult son and mother who experienced a sudden and severe illness. She had to resign from her position as assistant city manager of a coastal Georgia city to put the health of her family first.

The Family Caregiver Tax Credit Act’s seeks to recognize of the value of caregivers and support to promote caregiving and its potential for cost-effective care. Caregivers can help save hospitals and taxpayers money by preventing hospital readmissions, offering cost-effective home-based care, reducing emergency room visits, supporting preventive care and delaying nursing home placement.

Representative Sam Park currently represents the citizens of District 101, which includes portions of Gwinnett County. He was elected to the House of Representatives in 2016 and currently serves as the House Minority Caucus Whip. He also serves on the Higher Education, Industry and Labor, Intragovernmental Coordination and Small Business Development committees.

legis.ga.gov