Caregiving
Connecticut creates a caregiver tax credit of up to $2,000 a year starting in 2027
Connecticut passed a nonrefundable tax credit covering half of eligible out-of-pocket caregiving costs, up to $2,000 a year, for family caregivers starting January 1, 2027.
Key facts
- AARP Connecticut reported on September 25 that the state passed a Connecticut Caregiver Tax Credit during its 2026 legislative session.
- It takes effect January 1, 2027, for the 2027 tax year.
- The nonrefundable credit equals 50% of eligible out-of-pocket expenses, up to $2,000 a year, for costs directly related to caring for an eligible family member.
What happened
AARP Connecticut reported on September 25 that the state passed a Connecticut Caregiver Tax Credit during its 2026 legislative session. It takes effect January 1, 2027, for the 2027 tax year. The nonrefundable credit equals 50% of eligible out-of-pocket expenses, up to $2,000 a year, for costs directly related to caring for an eligible family member.
AARP says family caregivers spend an average of $7,200 a year out of pocket. Its Valuing the Invaluable report estimates Connecticut's 773,000 family caregivers provide 460 million hours of care a year, worth $10.7 billion at $23.45 an hour.
What it means for families
Caregiving costs add up: rides, supplies, home changes, paid help. A state tax credit does not cover everything, but it shows the kind of help families can push for, and it rewards keeping receipts.
For example: a son who buys grab bars and pays for an aide a few hours a week to help his father could, in a state with a credit like this, get part of that money back at tax time if the costs qualify.
What this means in New York: this is a Connecticut law. Families in New York should check current New York tax rules with a tax preparer, and keep caregiving receipts in case they qualify for any federal or state benefit.
Quick answers
How much is Connecticut's caregiver tax credit?
AARP Connecticut reported on September 25 that the state passed a Connecticut Caregiver Tax Credit during its 2026 legislative session. It takes effect January 1, 2027, for the 2027 tax year. The nonrefundable credit equals 50% of eligible out-of-pocket expenses, up to $2,000 a year, for costs directly related to caring for an eligible family member.
What to do this week
- Start a folder or envelope for caregiving receipts: supplies, home changes, rides and paid help.
- Ask a tax preparer whether any federal or state credits or deductions apply to your caregiving costs.
- Tell your state legislators what caregiving costs your family pays out of pocket.
Sources
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