Experts weigh in on Trump's plan for a caregiver tax credit.

• This election cycle, family caregiving was a "political moment," as per AARP.
• President-elect Donald Trump touted a caregiver tax credit during his campaign.
• Here's what experts are saying about Trump's proposal.

During a recent campaign rally, Donald Trump, the newly elected president, pledged to provide financial assistance for family caregivers.

During an October speech at Madison Square Garden, Trump stated that he would back a tax credit for family caregivers who look after a parent or a relative.

"It's high time they were acknowledged, isn't it?" he remarked. "They contribute immensely to our nation and are seldom recognized, yet they will now receive recognition."

Trump has not disclosed specifics about the tax credit he mentioned and his team did not respond to inquiries for comment. Additionally, he has pledged to provide other tax reductions to benefit Americans, such as removing taxes on Social Security benefits, tips, overtime, and auto loan interest payments.

According to Garrett Watson, senior policy analyst at the Tax Foundation, the president-elect's tax proposals definitely result in a significant net tax reduction.

Family caregiving having a 'political moment'

This election cycle, family caregiving received attention from both presidential candidates, as stated by Nancy LeaMond, the chief advocacy and engagement officer at AARP, during a Monday webinar hosted by the organization, which represents individuals aged 50 and above.

Approximately 48 million Americans assist in caring for elderly relatives, spouses, or other loved ones, according to AARP. Additionally, about 78% of these caregivers have personally funded care-related expenses, which amounts to an average of $7,200 annually.

"LeaMond stated that this action increases their economic stress and worry about their future financial stability. They are reducing their personal spending, using their savings, and cutting back on their retirement savings."

Despite a projected increase in the number of Americans turning 65 in the coming years, the share of potential caregivers is expected to decrease compared to the number of older adults who may require long-term care, according to AARP.

No one policy will be a 'silver bullet,' expert says

To enact a caregiver tax credit, Trump will need Congress' support.

The Credit for Caring Act is a bipartisan bill that proposes a tax credit of up to $5,000 per year to assist caregivers in covering long-term care expenses. Under the proposal, the credit would cover 30% of expenses exceeding $2,000. To be eligible, caregivers must have an income of more than $7,500 and be providing long-term care for a spouse or dependent.

LeaMond stated that new leadership in Congress and the White House should take up the issue and pass it.

Some states have already addressed the issue, with Oklahoma and Nebraska passing their own caregiver tax credits, and Maryland establishing a caregiver expense grant program.

A recent AARP survey in October revealed that about 90% of Americans aged 50 and above support a federal tax credit for eligible family caregivers. Meanwhile, a national poll conducted by Bipartisan Policy Center Action earlier this year found that 82% of registered voters back caregiver tax credits.

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The National Alliance for Caregiving's president and CEO, Jason Resendez, stated that the federal caregiving tax credit proposal presents a "vital chance" to incorporate family caregivers in forthcoming federal tax policy deliberations.

No single policy will completely ease the caregiving burden, he stated.

Resendez emphasized the importance of not losing sight of the larger-scale investments needed, such as stronger home and community-based supports, paid family and medical leave, and additional long-term services and supports.

As lawmakers evaluate tax policy proposals, they may modify the parameters to restrict the cost of Trump's proposed tax breaks, according to Watson.

Watson stated that the first step is to determine Congress's tolerance for any increase in debt.