By now you must have heard the term “Sandwich Generation.” It refers to people who are caring for aging parents while they still have children of their own at home. The sandwich generation faces challenges that are physical, emotional, spiritual and financial.
The Tax Code can’t do much about the first three, but it can be amended to address the fourth. That may be happening if a tax proposal authored by Rep. Tom Allen (D-Maine) becomes law. The proposal, known as H.R. 2902, the Middle Class Opportunity Act of 2007:
- Increases Child Tax Credit for the First Year
- Expands the Dependent Care Credit (to include parents and grandparents who can’t care for themselves but don’t live with the taxpayer)
- Creates an Education Tax Credit
- Offers Relief from the Alternative Minimum Tax (AMT)
The expanded dependent care credit could make a huge difference for a lot of family caregivers because the “incidental” expenses of caregiving add up fast. You don’t have to pick up and pay for too many prescriptions or buy and deliver too many groceries before you notice the impact on your finances.
I’ll be following the progress of Rep. Allen’s tax proposal as it makes its way through the House and the Senate. If the proposal sounds like a good idea to you, you might want to call your own Representative for more information and to indicate your support.
» Share This Story
Tags: none