Double Dependents Relief Act
Summary
What This Bill Does
The Double Dependents Relief Act adds Internal Revenue Code section 25G for working family caregivers. Eligible caregivers must have a dependent qualifying child, pay or incur qualified expenses to care for a qualified care recipient, and have earned income above $7,500. The credit equals 30 percent of qualified expenses above $2,000, capped at $10,000, with the cap indexed after 2026 by a medical care cost adjustment. A qualified care recipient must be a spouse or specified relative and be certified by a licensed health care practitioner as having long-term care needs for at least 180 consecutive days, with part of that period in the taxable year. Adults and older children qualify based on inability to perform activities of daily living or severe cognitive impairment; younger children can qualify based on eating, transferring, mobility, durable medical equipment, severe health conditions, or need for a skilled practitioner. Qualified expenses include goods, services, and supports for activities of daily living and instrumental activities of daily living, human assistance, supervision, assistive technologies, home modifications, medication management, information, transportation of the care recipient, incontinence supplies, coordination and services in home, residential, or nursing facility settings, respite care, counseling, support groups, training, verified lost wages for unpaid caregiving leave, caregiver travel costs, and caregiving technologies. Expenses counted for other tax benefits or ABLE contributions are excluded. The credit phases down by $100 for each $1,000 or fraction over modified AGI thresholds of $150,000 for joint returns and $75,000 for others, indexed after 2025, and taxpayers must include the care recipient's name and taxpayer identification number plus the certifying practitioner's identification number on the return. The credit applies to taxable years beginning after December 31, 2025.
Who Benefits and How
Working parents who also care for a spouse or relative with long-term care needs benefit from a tax credit for qualified care expenses above $2,000. Family caregivers paying for respite care, direct care workers, home modifications, assistive technologies, transportation, training, or unpaid leave benefit because those costs can qualify. Qualified care recipients benefit if the credit helps caregivers afford services and supports that assist with daily living and supervision needs. Licensed health care practitioners benefit from a defined certification role for documenting long-term care needs.
Who Bears the Burden and How
IRS tax administrators must implement new section 25G, inflation indexing, phaseout thresholds, identification requirements, and coordination with other tax benefits. Eligible caregivers must substantiate expenses and provide taxpayer identification numbers for care recipients and identification numbers for certifying practitioners. Licensed health care practitioners must certify long-term care needs within the allowed certification period for taxpayers to claim the credit. Federal taxpayers bear the revenue cost of the new caregiver credit.
Key Provisions
- Adds Internal Revenue Code section 25G creating a working family caregiver credit for taxable years after December 31, 2025.
- Provides a credit equal to 30 percent of qualified expenses above $2,000, capped at $10,000 and indexed after 2026.
- Requires eligible caregivers to have a qualifying child dependent, earned income above $7,500, and expenses for a certified qualified care recipient.
- Defines qualified care recipients by family relationship, licensed practitioner certification, and long-term care needs lasting at least 180 consecutive days.
- Defines qualified expenses to include direct care, supervision, assistive technology, home modifications, transportation, respite care, counseling, training, lost wages, travel, and caregiving technologies.
- Reduces the credit above modified AGI thresholds of $150,000 for joint returns and $75,000 for other taxpayers and requires identifying information on the return.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Creates a new working family caregiver tax credit equal to 30 percent of qualified caregiving expenses above $2,000, capped at $10,000 and indexed, for taxpayers with a qualifying child dependent, earned income above $7,500, and certified long-term care expenses for a spouse or qualifying relative.
Key Policy Areas
Tax, Caregiving, Long-Term Care
Primary Purpose
Creates a new working family caregiver tax credit equal to 30 percent of qualified caregiving expenses above $2,000, capped at $10,000 and indexed, for taxpayers with a qualifying child dependent, earned income above $7,500, and certified long-term care expenses for a spouse or qualifying relative.
Policy Domains
Substantive provisions
Identified Gains
- Working family caregivers
- Parents caring for qualifying relatives
- Qualified care recipients
- Direct care workers
- Caregiving technology providers
Identified Costs
- IRS tax administrators
- Caregivers claiming the credit
- Licensed health care practitioners
- Federal taxpayers
Sponsors
Legislative Progress
In CommitteeMr. Harder of California introduced the following bill; which was …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Eligible family caregivers claiming the new credit
Federal budget resources financing the caregiver credit
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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