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SOUTH BEND -- The so-called "sandwich generation" may finally be getting a dependent care tax credit break.
The "sandwich" term applies to those caught between the cost of raising their children and caring for their parents.
U.S. Rep. Joe Donnelly, D-2nd, announced Friday that he plans to introduce legislation soon that would increase tax credits for those who, in order to work, are paying for the care of dependent children, parents or both.
U.S. Rep. Joe Donnelly, D-2nd, announces legislation to provide tax relief for working caregivers. The bill would expand the dependent care tax credit to assist more families with the expenses of dependent children or older adults. Donnelly was accompanied by Shannon Renfrow of Nappanee, Karen Kiska of South Bend and Melissa Chalman of Mishawaka. All three are working caregivers who would qualify for the expanded DCTC.
The legislation is similar to a bill recently announced by U.S. Sen. Evan Bayh, D-Ind.
Currently, the dependent care tax credit allows families earning $15,000 a year to claim a credit of up to 35 percent of qualified care expenses. The credit is gradually reduced to 20 percent as the family's income rises to $43,000 and above. The credit does not now apply to aging parents or relatives not living with the family.
The Bayh and Donnelly bills would raise the limits so the 35 percent credit would apply to incomes of up to $75,000, and then phase down to 20 percent for families making $100,000 or more. The credits also could apply to qualified care expenses paid on behalf of aging parents who do not live with the family.
The credits would allow deductions of up to $3,000 for a dependent, with a maximum deduction of $6,000.
"We're trying to deliver tax assistance to families who really need it," Donnelly said at a Friday morning news conference.
One "sandwich generation" member who attended the conference was Melissa Chalman, of Mishawaka.
Chalman is the mother of two sons and also provides care for her mother, Rita Ciszczon, 81, of Granger.
"Finally, there's something that helps us in the middle class," said Chalman, adding that the proposed tax relief would help pay some expenses not covered by Medicare, such as the cost of private duty nurses for her mother.
Shannon Renfrow told reporters that she has relied on child care tax credits to allow her to continue her college studies, and soon plans to apply to medical school.
Without child care tax credits, she said, it might not have been possible to complete her degree, Renfrow said, recalling that, at one point, child care costs were more than the cost of her tuition.
"Parents really do need a break," Renfrow said.
Donnelly estimated that the legislation would benefit 10,500 families within the 2nd District, and nearly 117,000 families statewide.
Staff writer James Wensits:
jwensits@sbtinfo.com
(574) 235-6353 |
