A new tax credit for family caregivers is now in effect in Oklahoma.
State lawmakers passed the Caring for Caregivers Act during the 2023 legislative session.
The tax credit helps offset out-of-pocket expenses for family members who care for an older relative.
Examples of eligible expenses include a home health aide, adult day care and medical equipment.
Former Sen. John Michael Montgomery, R-Lawton, served as the principal Senate author of the bill.
“Caregivers essentially have a full-time job assisting their family member, all while keeping up with their prior family, job, school, or other commitments,” Montgomery said last year. “Nearly 26% of Oklahomans over the age of 45 are currently providing care for a family member or friend. This care often keeps family out of expensive nursing home facilities but requires around-the-clock care including managing medications, preparing meals, traveling to medical appointments and other necessary supervision or assistance.”
Those receiving care must be at least 62 years old and live in a private residence, not a licensed care facility.
The tax credit is capped at $2000 a year, but goes up to $3000 for those caring for a veteran or someone with dementia.
Nonprofit organization AARP says Oklahoma is the first state in the nation to adopt an expansive tax credit for family caregivers.
