Not Just for Kids: Child and Dependent Care Credit Benefits for Adult Care

Authors

Gabrielle Pepin, W.E. Upjohn Institute for Employment ResearchFollow
Yulya Truskinovsky, Maxwell School of Citizenship and Public Affairs, Syracuse UniversityFollow

Upjohn Author ORCID Identifier

https://orcid.org/0000-0002-3156-0268

Publication Date

3-9-2023

Series

Upjohn Institute working paper ; 23-381

DOI

10.17848/wp23-381

Abstract

As the U.S. population ages, family caregivers face substantial out-of-pocket costs and financial risks while providing the majority of long-term care. The Child and Dependent Care Credit (CDCC), a tax credit based on income and care spending, subsidizes caregiving expenses but has low participation among adult caregivers. This paper evaluates the CDCC’s current structure, documenting its limited impact on reducing caregiving costs and examining reforms to increase its utility for adult caregivers. Simulations of proposed changes—higher benefits, refundability, and relaxed eligibility requirements—demonstrate potential to expand access and enhance support for family caregivers within the existing policy framework.

Issue Date

March 2023, Revised May 2025

Note

Upjohn project #69115

Subject Areas

Early childhood; Childcare / Child care; LABOR MARKET ISSUES; Wages, health insurance and other benefits; Nonwage benefits; Work and family balance