Double Dependents Relief Act
Summary
The Double Dependents Relief Act introduces a tax credit for working family caregivers. It amends the Internal Revenue Code of 1986 to provide a credit equal to 30% of qualified expenses exceeding $2,000, with a maximum credit of $10,000, adjusted for inflation after 2026. The credit is available to eligible caregivers who have a dependent qualifying child, incur qualified expenses for a qualified care recipient, and have earned income exceeding $7,500.
Expected Effects
This act will provide financial relief to working families who are caring for dependents with long-term care needs. It aims to offset some of the costs associated with providing care, such as expenses for goods, services, and supports that assist the care recipient with daily living activities. The credit is phased out based on adjusted gross income, ensuring that it primarily benefits lower and middle-income families.
Potential Benefits
- Provides financial assistance to working families caring for dependents with long-term care needs.
- Offers a tax credit to offset qualified expenses related to caregiving.
- Includes a broad definition of qualified expenses, covering various goods, services, and supports.
- Adjusts the credit for inflation and income, maintaining its value over time.
- Supports families in providing care at home, potentially reducing the need for institutionalization.
Potential Disadvantages
- The credit is phased out for higher-income families, potentially excluding some families with significant caregiving expenses.
- The $2,000 expense threshold may be difficult for some low-income families to meet.
- The complexity of the eligibility requirements and qualified expense definitions may create administrative burdens.
- The maximum credit amount may not fully cover the costs of care for some families with extensive needs.
- Potential for increased tax fraud or abuse due to the complexity of claiming the credit.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution (Preamble). Congress has the power to lay and collect taxes to provide for the general welfare of the United States. The bill aims to support working families and provide assistance to those caring for dependents with long-term care needs, which can be seen as promoting the general welfare. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).