Care For An Aging Senior In Your Home? NJ Bill Could Net You $675

ESSEX COUNTY — New Jersey taxpayers who care for an aging senior in their homes could see up to $675 in annual tax credits if a proposed state law reaches the finish line.

On Monday, the Senate Health, Human Services and Senior Citizens Committee voted unanimously to advance S-2021. The bill was referred to the Budget and Appropriations Committee for further review. Read the full text here.

The bill’s primary sponsors include Sen. Richard Codey, the former governor of New Jersey who now represents the state’s 27th Legislative district. The recently redrawn district includes the municipalities of Livingston, Millburn, Montclair, Roseland and West Orange in Essex County, and Clifton in Passaic County.

Codey said it’s often a “no-brainer” decision to bring a loved one who is unable to live independently into your home. But some heavy costs and pressures can come with that choice, he added.

“Family caregivers play an important role in our overall senior living infrastructure and this legislation recognizes their value and sacrifices in offering this support,” Codey said.

Here’s what the bill would do if it becomes law:

“This bill, designated as the Caregiver’s Assistance Act, provides a gross income tax credit to qualified caregivers, including resident taxpayers and resident individuals, who pay or incur qualified care expenses for the care and support of a qualifying senior family member residing with the caregiver at the caregiver’s permanent place of abode in this state. The bill provides that to be allowed a credit qualified caregivers who pay or incur qualified care expenses must have gross income that does not exceed an annual income limitation. The bill specifies that qualified caregivers must have gross income that does not exceed $100,000, or does not exceed $50,000 if married or a civil union partner filing separately or if unmarried, not a partner in a civil union, and not filing or eligible to file as head of household or as a surviving spouse for federal income tax purposes, to be allowed the credit. The bill provides that the amount of the credit is equal to 22.5 percent of the qualified care expenses paid or incurred by the qualified caregiver during the taxable year for the care and support of a qualifying senior family member that are not in excess of $3,000. The bill’s limitation on the amount of qualified care expenses caps the maximum amount of each credit at $675 per year.”

To qualify, seniors would need to meet three conditions:

• They must be 60 years or older, and must be a relative of the caregiver
• They must have lived with the caregiver at the caregiver’s “permanent place of abode” in New Jersey for at least six months of the taxable year
• Their gross income for the taxable year can’t exceed $20,000, or $13,000 under certain conditions (if married or a civil union partner filing separately or if unmarried, not a partner in a civil union, and not filing or eligible to file as head of household or as a surviving spouse for federal income tax purposes)

“As New Jersey continues to grapple with an aging population, family caregivers play a key role in supporting the elderly community and allowing them to live out their final days with comfort and dignity,” said Sen. Jim Beach of the 6th district, another primary sponsor of the bill.

“This legislation will help to offset some of the costs associated with caring for a loved one at home by providing a tax credit for the expenses incurred,” Beach said.

• See Related: How Long $1 Million Retirement Savings Will Last In NJ, New Study Says

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