$5000 Caregiver Tax Credit for Michigan Families – A Needed Break!

Governor Gretchen Whitmer proposes to provide a $5,000 tax credit for Michigan families that are shouldering the responsibility of caring for the elderly or disabled members.

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Families should shoulder the responsibility of caring for family members

As part of the growing trend of providing subsidies for families that care for their family members, Gov. Whitmer proposed a $5,000 tax credit. In an article from Fast Company, Americans are encouraged that adult children should provide care for aging parents and not the government or other organizations. A study by Fast Company shows that most Americans want to provide care but want the government to shoulder the cost.

The cost of caregiving is increasing every year, but there are only a few federal government programs that tackle this. Some states offer paid leave such as in California, Washington, and Massachusetts. Other states are also implementing tax credit policies just like Gov. Whitmer proposed in Michigan.

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A $5000 caregiver tax credit is a needed break

The $5,000 caregiver tax credit can be utilized for modifying the homes to fit the elderly or disabled needs such as ramps, bathroom grabs, cane, and walkers or even to help pay professional care workers. Fast Company reported that Gov. Whitmer’s $5,000 caregiver tax credit is more generous than other states like Georgia.

For the past two decades, respite care has been the most common choice for providing care for elderlies. However, many caregivers cannot afford these services because of the cost which is around $29 per hour. With the proposed caregiver tax credit, caregivers can take a break by using the money for respite services which will delay transitions into nursing homes.

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