OKLAHOMA CITY (KOKH) – With the passage of the Caring for Caregivers Act this month, Oklahoma will become the first state in the country to implement a broad caregiver tax credit.
The Bill Provides Tax Credits To Family Caregivers To Keep Loved Ones At Home
The law goes into effect on January 1, 2024.
House Majority Leader Tammy West, who advocated for the measure, stated that it will provide tax credits to people who care for elderly relatives in their homes.
“Caregiving is a labor of love for Oklahoma’s 490,000 family caregivers, but the experience is stressful, isolating, and has a real financial cost,” West said. “This will provide much-needed financial relief to these unpaid family caregivers while keeping loved ones at home and out of costly taxpayer-funded nursing homes; it is a great solution that allows Oklahomans to care for their own without having to rely on the government to take care of their family members.”
The bill will provide a tax credit of up to 50% of qualifying caregiver costs, with a ceiling of $2,000 per year for most participants and $3,000 per year for those caring for veterans or those with dementia.
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Oklahoma Introduces Larger Tax Credits For Family Caregivers
Home adaptations such as ramp installation, durable medical equipment, assistive technologies, home health, and other expenses are all eligible.
The family caregiver must have an adjusted gross income of less than $50,000 for single filers and $100,000 for joint filers.
The credit reimburses the unpaid family caregiver for out-of-pocket expenses incurred for a limited range of services. It is restricted to $1.5 million each year.
While other states provide smaller tax credits to specific caregivers or for expenses such as home repairs, the AARP claims Oklahoma is the first to implement the larger credit.
“Family caregivers are the backbone of our country’s long-term care system,” said Sean Voskuhl, AARP Oklahoma State Director. “The Caring for Caregivers Act recognizes the hard work and sacrifice of family caregivers and helps lessen the financially burdensome effects of their responsibilities.”
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