This legislation, titled the "Credit for Caring Act of 2025," amends the Internal Revenue Code of 1986 to provide a new tax credit for working family caregivers . The credit allows an eligible caregiver to claim 30 percent of their qualified expenses that exceed $2,000, with a maximum credit amount of $5,000 per taxable year. This maximum credit amount will be adjusted for inflation in years after 2025 based on medical care costs. An eligible caregiver is defined as an individual with earned income exceeding $7,500 who incurs qualified expenses while providing care for a qualified care recipient . A qualified care recipient must be a spouse or relative certified by a licensed health care practitioner as having long-term care needs for at least 180 consecutive days. These needs include inability to perform activities of daily living, severe cognitive impairment requiring substantial supervision, or specific conditions for individuals under six years of age. Qualified expenses encompass a broad range of goods, services, and supports that assist the care recipient with daily and instrumental activities of daily living. These include human assistance, assistive technologies, home modifications, transportation, and non-health items. Additionally, specific caregiver-related costs such as respite care, counseling, lost wages for unpaid time off, and travel costs are considered qualified expenses. Amounts claimed under other tax benefits, like the dependent care credit or medical expense deduction, reduce the qualified expenses for this credit. The credit is subject to an income phase-out , reducing by $100 for every $1,000 that a taxpayer's modified adjusted gross income exceeds a threshold. This threshold is $150,000 for joint filers and $75,000 for all other filers, with these amounts also indexed for inflation after 2025. The amendments made by this Act will apply to taxable years beginning after December 31, 2024.