Michigan Caregivers Could Claim $2,000 Tax Credit

Family caregivers of older adults in Michigan who pay out-of-pocket care costs could recover up to 30% of those expenses under a proposed state credit.

Updated on Nov. 7, 2026 in Eldercare

Michigan Caregivers Could Claim $2,000 Tax Credit

Live Poll

Should Michigan offer a tax credit to family caregivers with out-of-pocket costs?

Michigan lawmakers have proposed an income tax credit for family caregivers that would cover up to 30% of qualified care expenses, capped at a $2,000 non-refundable credit. The bill advanced unanimously out of the House Committee on Finance in June and now awaits action by the full House.

Why it matters

Caregivers in Michigan, where more than 1.5 million adults care for an older adult, face mounting costs and lost work time, and a state credit would offset some of those out-of-pocket expenses for households providing home-based care. The push follows similar programs in Oklahoma and Nebraska and a 2026 approval in Connecticut.

The proposed credit caps out at $2,000 per caregiver and covers up to 30% of qualified expenses, with the state estimating a $80 million to $120 million annual drop in income tax revenue. Among Michigan caregivers, 23% have increased their debts and 21% have used up short-term savings.

The players

Rep. Kathy Schmaltz (R-Jackson)

Michigan state representative and primary sponsor of the family caregiver tax credit legislation.

House Fiscal Agency

Nonpartisan Michigan legislative agency that produced the revenue estimate for the proposal.

The details

Qualifying expenses include respite care, counseling or support services, transportation, assistive technology, direct-care assistance, and durable medical equipment or home or vehicle modifications. Eligibility for the care recipient requires substantial assistance with daily activities or supervision due to severe cognitive impairment. The legislation advanced out of the House Committee on Finance with unanimous support in June and remains awaiting action in the full House.

June 2026: The bill advanced unanimously out of the House Committee on Finance.
2026: Connecticut approved a family caregiver tax credit.
2025: AARP and the National Alliance for Caregiving released a report on working caregivers.

The Home Front

Michigan's proposal joins family caregiver tax credits already in place in Oklahoma and Nebraska, and Connecticut approved its own version in 2026. The approach treats unpaid home care as a household cost that state tax policy can partly offset.

If you provide care for an older relative at home, keep receipts for respite care, transportation, and any durable medical equipment or home modifications so you can claim the credit if the bill becomes law. Check whether your care recipient meets the substantial-assistance or supervision requirements before planning around the credit.

The takeaway

Unpaid family caregiving carries real financial costs, and a state credit could help offset them if the bill passes the full House. Keep a file of qualifying care expenses now so you can document them quickly if the credit takes effect.