Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311999 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17560
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
As the U.S. population ages, family caregivers face substantial out-of-pocket costs and financial risks while providing the majority of long-term care. The Child and Dependent Care Credit (CDCC), a tax credit based on income and care spending, subsidizes caregiving expenses but has low participation among adult caregivers. This paper evaluates the CDCC's current structure, documenting its limited impact on reducing caregiving costs and examining reforms to increase its utility for adult caregivers. Simulations of proposed changes—higher benefits, refundability, and relaxed eligibility requirements—demonstrate potential to expand access and enhance support for family caregivers within the existing policy framework.
Subjects: 
adult care
Child and Dependent Care Credit
American Rescue Plan Act of 2021
participation
eligibility
JEL: 
H24
J14
Document Type: 
Working Paper

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