Lowering Costs for Caregivers Act of 2025

The "Lowering Costs for Caregivers Act of 2025" seeks to provide significant tax relief for individuals who incur medical expenses for their parents. Its primary purpose is to amend the Internal Revenue Code of 1986, allowing such expenses to be considered qualified medical expenses for various tax-advantaged accounts. This legislative change is designed to help lower costs for caregivers by expanding the scope of eligible medical deductions. Specifically, the bill modifies sections related to Health Savings Accounts (HSAs) , Flexible Spending Arrangements (FSAs) , Health Reimbursement Arrangements (HRAs) , and Archer Medical Savings Accounts (MSAs) . For HSAs and Archer MSAs, it permits amounts paid for a parent of the individual or their spouse to be included as medical expenses. For FSAs and HRAs, it clarifies that these arrangements will not lose their tax-preferred status if they allow funds to be used for a parent's medical care, with all amendments applying to expenses incurred or amounts paid after December 31, 2024.