More than 48 million Americans are caregivers, providing more than $600 billion in unpaid care for their loved ones. That’s doing everything from helping prepare meals and paying bills to assisting with medication and medical/nursing tasks in order to help parents, spouses and loved ones live independently in their homes.

Sixty-one percent of those caregivers also have a part-time or full-time job, on top of their caregiving responsibilities. The average caregiver in the U.S. spent $7,242 in out-of-pocket costs in 2021, according to the AARP.

But a new bill could offer caregivers some financial relief.

On Wednesday, a bipartisan group of U.S. Senators and members of the U.S. House of Representatives reintroduced a piece of legislation that would provide help in the form of a federal tax credit for eligible working family caregivers.

AARP has been working with legislators for eight years on previous versions of the bill. But senior AARP leaders told USA TODAY that they believe the time is finally right for it to become law – and bring relief to many caregivers, including members of Congress.

“Everybody has a story and a personal connection” to caring for aging parents or spouses, said Megan O’Reilly, AARP's vice president for government affairs for health care and family issues. The advocacy organization has heard directly from members of Congress who've cared for loved ones, she said.

What would the proposed Credit for Caring Act do?

The Credit for Caring Act, if passed, would provide financial support for individual caregivers by providing up to a $5,000 nonrefundable federal tax credit for eligible working family caregivers, that would cover 30% of qualified expenses they incurred above $2,000.

The bill would help cover some of the more than $7,200 that families spend on average each year on out-of-pocket caring costs, such as home care aides, adult day care, respite care, transportation, home modifications, or other supports.

Family caregivers would have to document what family caregiving expenses they've had out of pocket above $2,000 to qualify for the credit, said Bill Sweeney, AARP’s senior vice president for government affairs.

The family member does not need to be living in the same house, Sweeney said. But the costs would need to be incurred by the caregiver seeking the tax credit, not expenses paid for by the loved one being cared for, he said.

The bill could also help boost the U.S. economy by keeping more caregivers in the workplace. According to an AARP analysis, if caregivers ages 50 and older had support in the workplace, the U.S. gross domestic product could grow by an additional $1.7 trillion (5.5%) by 2030.

Who is sponsoring the bill?

The most recent version of the bill is being introduced Wednesday in both chambers of Congress. In the Senate, Sen. Michael Bennet, D-Colo., is the lead sponsor with co-sponsor Sen. Shelley Capito, R-W.Va., and in the House of Representatives, the lead sponsor is Rep. Mike Carey, R-Ohio with co-sponsor Rep. Linda Sánchez, D-Calif. Original co-sponsors also include Sens. Elizabeth Warren, D-Mass., Susan Collins, R-Maine, Maggie Hassan, D-N.H., and Lisa Murkowski, R-Alaska.

Sanchez said the bill, if passed, could ease the "great burden on many families across the country."

“As the daughter of two parents diagnosed with Alzheimer’s disease, I know the sacrifices and work family caregivers make every day,” she said in a statement.

What is different this time around that could mean passage of the bill?

The conversation around caregiving is gaining momentum as more people are identifying with and recognizing the role they have as a caregiver and the challenges they face, said O'Reilly. “We really are at a moment in time of caregiving,” she said.

Tangible steps are being taken at both the state and federal level to support caregivers, she said.

Last year, an executive order was issued highlighting direct actions the Biden administration is going to take to support caregivers. And Medicare is now going to pay providers to train those who tend to their loved ones, said O’Reilly.

Our country’s aging population is growing every day and they want to age in their own homes, where they can be supported by family members, said Sweeney.

“Our long-term care crisis in this country is getting worse, it’s not getting better,” said Sweeney. “More and more people turn 65 every single day.”

How does caregiving impact the average family?

"Family caregivers are the backbone of our country’s long-term care system, but they are overwhelmed, exhausted, and financially strained,” Nancy A. LeaMond, AARP executive vice president and chief advocacy & engagement officer, said in a press release. "We urge Congress to pass this legislation in 2024 to help provide relief and put money back in the pockets of caregivers.”

Though a majority of family caregivers work either full or part time, many face financial risks such as lost income, reduced career opportunities, and subsequently lower Social Security and retirement benefits. AARP research has found that 45% of caregivers have reported negative financial impacts such as taking on debt or no longer saving.

“This is for working caregivers,” said Sweeney of the tax credit. “These are people who are really trying to balance staying in their jobs, staying in the workforce and taking care of their loved ones.”

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In an AARP survey, 42% of caregivers said they either quit their jobs or cut their hours to spend time on caregiving.

Lynda Filipek, whose story was shared by AARP, said she would have benefited from the tax credit.

Her mom had been in an independent living facility near Filipek's home in the Denver area. Filipek visited regularly and helped with some of her care.

“I had to buy things and do things for my mom and my dad that I just didn’t have the money for and I went into debt, ” said Filipek, who was still working. Both of her parents died within the last year.

Families of color are particularly hard-hit

While family caregivers spend 26% of their income on average taking care of their loved ones, families of color are particularly hard-hit. Latino or Hispanic family caregivers spent $7,167 on average, or 47% of their income, on out-of-pocket expenses for such tasks in 2021, according to AARP. Black family caregivers spent $6,746 on average, or 34% of their income, on such expenses, while Asian and Pacific Islander caregivers spent $8,368 on average, or 22% of their income.

When would the law go into effect?

In the last Congress when the bill was last introduced, more than 140 consumer organizations supported it, Sweeney said. No previous version of the bill made it to a vote, he said.

If passed this session, the bill would become law and effective for the 2024 income tax year, O'Reilly said.

Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] or follow her on X, Facebook, or Instagram @blinfisher. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.

This article originally appeared on USA TODAY: Caregivers spend $7,200 out of pocket; New bill provides tax relief