What's happening
This bill creates a refundable tax credit for certain New York taxpayers who pay for care of qualifying senior family members.
Why it matters
Helps low- and moderate-income families. The credit is only available to single taxpayers with incomes up to $45,000 and married couples up to $60,000, directly targeting relief to those who are most likely to struggle with the costs of elder care.
Supports in-home caregiving and family cohesion. By covering qualified expenses for keeping an elderly family member at home—including home modifications, health equipment, and personal care—the bill encourages families to care for aging relatives in their own residences rather than turning to institutional care.
Fills gaps left by insurance and government programs. Only out-of-pocket expenses not compensated by insurance or public programs are eligible, so the credit reduces the financial burden for families who fall through the cracks of existing support systems.
Recognizes complexity of modern family caregiving. The bill allows for multiple family members to share the tax credit and for nontraditional living arrangements, acknowledging the varied ways families provide and organize care for seniors.
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Who cares
Headline styles
Tax Credits for Senior Caregivers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Reported and committed to finance
- Referred to investigations and government operations
- Print number 1636a
- Amend and recommit to finance
- Reported and committed to finance
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax Breaks for Caregivers
In Assembly Committee · Ways And Means · Sponsor Steven Englebright
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1636--A
2017-2018 Regular Sessions
IN SENATE
January 10, 2017
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to establishing the "caregiver's assistance act"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "caregiver's assistance act".
§ 2. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows:
(jjj) Elder care credit. (1) A taxpayer shall be allowed a credit against the tax imposed by this article for qualified care expenses paid by the taxpayer for the care of a qualifying senior family member. The amount of the credit shall equal the lesser of twenty percent of the qualified care expenses paid by the taxpayer during the taxable year or five hundred fifty-five dollars, whichever is less. If the credit or credits provided pursuant to this section shall exceed the taxpayer's tax for such taxable year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon. No credit shall be granted under this subsection if (i) the taxpayer's New York adjusted gross income is greater than forty-five thousand dollars for a single taxpayer or sixty thousand dollars for married taxpayers, or (ii) if the taxpayer has claimed the credit authorized in subsection (c) of this section for qualified care expenses paid for the care of a qualifying senior family member.
(2) As used in this subsection:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03691-03-7
S. 1636--A 2
(A) "Taxpayer" shall mean a resident taxpayer, but shall not include a a part-year resident taxpayer.
(B) "Qualifying senior family member" shall mean a person who resided with the taxpayer for at least six months during the taxable year for which credit is claimed, is within the third degree of consanguinity to the taxpayer, is at least sixty years of age on or before December thirty-first of the taxable year for which credit is claimed and has a New York adjusted gross income for the taxably year for which credit is claimed of thirteen thousand dollars or less for a single family member or twenty thousand dollars or less for a senior family member and his or her spouse. A qualifying senior family member includes a person who otherwise meets the qualifications specified in the preceding sentence but who occupies a separate room or rooms in or at the residence of the taxpayer, such as those commonly referred to as mother-in-law apartments, but shall not include a tenant, subtenant, roomer or boarder who pays a lease or rental fee to the taxpayer for the space.
(C) "Qualified care expenses" shall mean payments made by the taxpayer for goods and services necessary to allow the qualifying senior family member to be maintained in the taxpayer's residence that are: (i) provided to or for the benefit of the qualifying senior family member or to assist the taxpayer in caring for the qualifying senior family member and may be provided by an organization or an individual not related to the taxpayer or the qualifying senior family member; and (ii) not compensated for by insurance or federal or state programs. Such expenses include, but not be limited to, home health agency services, adult day care, companionship services, personal care attendant services, homemaker services, respite care, health care equipment and supplies, home modification, or any other services necessary to provide assistance in two or more activities in daily living.
(3) When two or more taxpayers who do not file joint tax returns may claim credit for the same qualifying senior family member or members pursuant to this subsection, the credit or credits shall be equally divided between or among such individuals unless such individuals file with the commissioner a written agreement setting forth a different division.
(4) The commissioner may require a taxpayer to furnish as support of his or her claim for credit under this subsection receipts for qualified care expenses or other such proofs of payment as shall satisfy the commissioner.
§ 3. This act shall take effect immediately and shall apply to all taxable years beginning on and after January first, two thousand nineteen.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establish- ing the "caregiver's assistance act"
Purpose or general idea of bill
To provide income tax credits to aid those who provide informal, unpaid care of their elderly relatives
Summary of provisions
Section one of this bill provides the short title, which is the "Caregiver's Assistance Act."
Section two of this bill adds a new subsection (jjj) to section 606 of the Tax Law, to provide a refundable credit to qualified taxpayers who provide informal, unpaid care to qualifying senior family members. The credit amount is the lesser of 20% of qualified care expenses paid by the taxpayer or $555. A qualifying senior family member is a person who resided with the taxpayer for at least six months during the taxable year, is at least sixty years of age, and has a New York adjusted income of $13,000 or less for a single family member or $20,000 or less for a married couple.
Section three of this bill provides that this act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2019.
Existing law
Currently, a taxpayer may be able to claim the credit for certain house- hold and dependent care services when he or she incurs and pays quali- fied care expenses for a qualifying senior family member.
Justification
The 2011 "MetLife Study of Caregiving Costs to Working Caregivers: Double Jeopardy for Baby Boomers Caring for Their Parents," found that the number of adult children who are providing financial assistance to or caring for their elderly parents has tripled over the past 15 years. The cost to these caregivers is significant. Caregivers who continue to work full-time were found to be in fair to poor health, while their non-caregiver counterparts were found to be healthier. Many of these caregivers are forced to give up their full-time jobs and seek part-time employment. It is estimated that the lost wages, private pension bene- fits, and social security for these caregivers is almost $225,000.
This legislation will encourage families currently caring for their senior relatives to continue their commendable service and create an incentive for more families to do the same.
Prior legislative history
2017: S.1636 - Reported to Finance 2016: S.2692 - Reported to Finance 2015: S.2692 - Referred to Investigations and Government Operations
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.