Across the nation, there are nearly 7 million Americans living with Alzheimer’s and over 11 million providing unpaid care for them. While many of these dementia caregivers value their essential role in maintaining the quality of life for their loved ones, caring for those living with dementia often takes a significant financial toll on families. Last week, AIM was proud to see Congress take action to provide much-needed financial relief for family caregivers throughout the country, including those caring for people with Alzheimer’s and other dementia, by introducing the bipartisan Credit for Caring Act (H.R. 2036 / S. 925). 

In 2023, Alzheimer’s caregivers provided 18.4 billion hours of unpaid care valued at nearly $350 billion. In 2021, dementia caregivers bore, on average, $12,388 in out-of-pocket costs on behalf of the person living with dementia. As a result of this financial strain, many families significantly cut back on savings contributions and other spending, and some report eating less due to care costs. 

Of the total lifetime cost of caring for someone with dementia, 70% is borne by families — either through out-of-pocket health and long-term care expenses or from the value of unpaid care. Out-of-pocket costs include medical care, household expenses for their loved one, and respite services. With 41% of caregivers having a household income of $50,000 or less, there is an urgent need to alleviate the overwhelming costs faced by caregivers. 

The bipartisan Credit for Caring Act will create a new, non-refundable federal tax credit of up to $5,000 for eligible family caregivers to help meet this need. Introduced in the House by Reps. Mike Carey (R-Ohio) and Linda Sanchez (D-Calif.), and in the Senate by Shelley Moore Capito (R-W.Va.) and Sens. Michael Bennet (D-Colo.), the bipartisan Credit for Caring Act would offset the cost of some caregiving expenses such as a home care aide, adult day services, home modifications, respite care or other supports that help them and their loved ones. Importantly, this bipartisan bill will help family caregivers who care for nondependents or who do not live with the loved one they are assisting.

To provide real help to our nation’s dementia caregivers who are facing staggering costs to care for their loved ones, the Alzheimer’s Association and AIM are proud to work with bipartisan members in the House and Senate, as well as AARP, to grow support and advance the Credit for Caring Act. Thank you to these bipartisan congressional champions for standing up for our nation’s caregivers, and we look forward to working together with Congress and the administration to swiftly pass this bipartisan bill into law.