The "Credit for Caring Act of 2025" proposes a new federal tax credit designed to support working family caregivers by amending the Internal Revenue Code. This credit allows eligible individuals to claim 30 percent of their qualified caregiving expenses that exceed $2,000. The maximum credit amount is set at $5,000 , which will be adjusted for inflation in subsequent years. To qualify for the credit, a caregiver must have earned income exceeding $7,500 and pay expenses for a "qualified care recipient." A qualified care recipient is defined as a spouse or specific relative who has been certified by a licensed health care practitioner as having long-term care needs for at least 180 consecutive days. These needs include difficulties with daily living activities, severe cognitive impairment, or specific conditions for younger children. Qualified expenses cover a broad range of goods, services, and supports that assist the care recipient with daily living, such as human assistance, assistive technologies, home modifications, and transportation. Importantly, the bill also includes expenditures directly benefiting the caregiver, such as respite care counseling and support groups lost wages for unpaid time off travel costs related to caregiving . The credit amount is subject to a phase-out for taxpayers with modified adjusted gross incomes exceeding $75,000 for individuals or $150,000 for joint filers , with these thresholds also indexed for inflation.