HB 361

Abstract

Family caregiver tax credit. Creates a nonrefundable income tax credit beginning in taxable year 2020 for expenses incurred by an individual in caring for an eligible family member, defined in the bill, who requires assistance with one or more activities of daily living, also defined in the bill. The credit equals 50 percent of eligible expenditures incurred by the caregiver, but shall not exceed $1,000. In order to qualify for the credit, the family caregiver must (i) not receive any compensation or reimbursement for the eligible expenditures and (ii) have federal adjusted gross income that is no greater than $75,000 for an individual or $150,000 for married persons. Both the caregiver and the eligible family member must be residents of Virginia. The bill requires the Tax Commissioner to establish guidelines for claiming the credit and provides that any unused credit may be carried forward by the taxpayer for five taxable years following the taxable year for which the credit was issued. The credit expires beginning with taxable year 2025.