Across the nation, hundreds of thousands of people turn 65 every day. More than half of these percentages do need some form of assistance and long term care. As a result, the market and demand for long term care are growing.
Family caregivers, in time, are now the primary support of the care infrastructure. This is not surprising as the cost of care is increasing, and there is a shortage of direct care workers. While caregiving is a selfless act with its challenges, it cannot be adequately compensated. This, however, is not a license to not pay caregivers the deemed compensation.
Here is an estimated cost of caregiving:
Family caregivers do not have access to wages, health insurance, and other job benefits like investments and retirement savings. They do not even have access to social security benefits. According to MetLife, there were 10 million caregivers in America for over 50 years who cared for their elderly ones. These set of people were estimated to lose $3 trillion in retirement funds, social security benefits, and pensions over their lifetime
Family caregivers also had their share of health issues, increased stress and burn-out
Other expenses necessary for the care of a loved one, like medical equipment and medications, cost almost $10,000 per year. This cost is projected to increase every year.
Over 65% of caregivers in charge of helping a family member or friend report that for them to attend to their caregiving responsibilities, they had to inconvenience themselves. This includes taking unpaid leave, restructuring their work schedule, or even resigning from their job.
America has more than 45 million caregivers giving about a total of 38 billion care hours to infants, spouses, parents, young children, seniors, and other adults, at a worth of about $500 Billion.
In a bid to come up with a strong caregiver infrastructure, the families of these caregivers must be compensated financially and in other forms. Caregiving, without a doubt, is hard work. As a result, making sure that the earned income tax credit covers the caregiver is a good step. In the country, the earned income tax credit helps offer relief from poverty. Also, many states provide EITC tax refunds.
To be eligible for EITC, one needs to be working. Though many employed family caregivers benefit from EITC, some caregivers receive little or no help, especially if their income is low.
This calls for an expansion of the definition of work. This will help EITC to cover family caregivers. If the description of work can cover taking care of a sick parent, a young child, disabled people, people earning little from paid caregiving jobs also qualifies for the EITC credit.
When we expand the EITC to include caregivers, the government and policymakers will see and understand the impact of care work is to society and the economy. This expanded work definition is a key element in the Cost-of-Living Refund Act.
With infants and other young children below six years, a senior above the age of 65, and you have a low income which does not qualify you for any tangible EITC, you will get a "top-up" credit. Ideally, this qualifies you for credit worth $1200 per year. Under the federal EITC policy, however, you might be eligible for $4000.
It is essential to reduce the eligibility age for EITC and getting rid of the upper age limit. This will make more people, especially caregivers, qualify for the EITC. With this, we can understand and acknowledge the impact of these caregivers in our society.
The earned income tax credit for caregivers is vital in many pieces of federal legislation. This includes the senate, EITC modernization, cost-of-living refund act in the house.
