Lawmakers hear personal testimony and policy options on caregiver tax relief

Multiple witnesses, including AARP Connecticut and family caregivers, urged the Aging Committee to adopt a tax credit (rather than a deduction) to provide meaningful financial relief for family members who provide unpaid care.

Natalie Shurtleff of AARP Connecticut recommended replacing the draft tax deduction with a tax credit, saying the deduction in the bill (as drafted) would primarily benefit higher‑income filers and do little for caregivers who claim modest out‑of‑pocket expenses. AARP provided comparative scenarios showing how a credit would deliver more equitable relief to low‑ and moderate‑income caregivers.

Senators and representatives also heard personal testimony from family caregivers. Leanne Fallett described years of round‑trip travel to help aging parents across state lines and the out‑of‑pocket and opportunity costs incurred when caregivers reduce work hours or retire early. Karen Haraghi of Hampton detailed two weeks of multiple hospital trips, medications, Hoyer lift rental and gas expenses that added up to several hundred dollars in a short period. Witnesses said caregiving often forces people to reduce paid work, lose retirement contributions and diminished future financial security.

Why it matters: Family caregivers are a critical element of long‑term care capacity. Advocates told the committee that a tax credit would better preserve caregivers’ economic stability and reduce the need for public long‑term care expenditures by helping people remain at home.

Policy considerations: AARP suggested a refundable credit targeted to common caregiving expenses and recommended clear definitions of qualifying expenditures and caregiver relationships to prevent ambiguity. Committee members asked for scenarios and fiscal modeling; AARP provided illustrative tables comparing the deduction and credit impacts on taxpayers at different income levels.

Next steps: Advocates offered to work with the committee to refine language — in particular to consider a refundable tax credit sized and targeted to best support lower‑ and middle‑income caregivers.