Eligible family caregivers in Connecticut could get reimbursed for some care expenses in the coming years. That’s part of a new tax credit state lawmakers approved as part of the state budget adjustment Saturday.
The tax credit takes effect next year, and reimbursements would come in 2028. Natalie Shurtleff, an associate state director of AARP Connecticut, hopes it will help offset the out-of-pocket costs unpaid caregivers spend to assist a loved one living with them or in another residence.
“We know, on average, caregivers are spending more than $7,000 each year, and that can be an incredible financial burden for a lot of individuals,” she said.
For now the caregiver tax credit is limited to individuals who make less than $50,000, or couples who make under $100,000. Shurtleff hopes state lawmakers can expand eligibility in the future.
The tax credit is capped at $2,000, but only half the expenses will be reimbursed. Shurtleff said the credit will help caregivers with expenses related to caring for a person at home.
“They can get a tax credit if they spend money on a ramp for their loved one or pay for a health aide to come into the home to provide some respite care,” she said.
There are over 773,000 people in Connecticut providing unpaid care for a family member or friend.
Shurtleff said AARP and the state Department of Revenue services will share more guidance about the tax credit as 2027 gets closer.
