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Bill

A 577

Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.

2026-2027 Regular Session Introduced by Clinton Calabrese and 14 co-sponsors

A-577 creates a refundable NJ tax credit of up to 22.5% of up to $3,000 in qualified caregiving expenses for eligible caregivers of a qualifying senior family member.

Introduced, Referred to Assembly Aging and Human Services Committee
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WeVote Research Nonpartisan
Bill Summary · A 577

Summary of Bill A-577 (NJ, 222nd Session) — Caregiver’s Assistance Act

Purpose

A-577 creates a New Jersey gross income tax credit intended to help individuals who pay or incur expenses for the care and support of a qualifying senior family member. The credit is designed to offset a portion of qualified caregiving costs, with eligibility and credit amount set by income and other criteria.

Key Provisions

  • Credit purpose and type

    • Establishes a refundable gross income tax credit under the New Jersey Gross Income Tax Act for eligible caregivers.

  • Eligibility: qualifying caregiver

    • Must be a resident taxpayer or resident individual of New Jersey.
    • Must have gross income for the tax year not exceeding:
    • $100,000, or
    • $50,000 if married or in a civil union filing separately, or if unmarried and not filing as head of household or surviving spouse (federal status).
    • Can receive the credit for the care of a qualifying senior family member.

  • Credit amount and cap on expenses

    • Credit equals 22.5% of qualified care expenses paid or incurred during the tax year.
    • Expenses must not exceed $3,000 per qualifying senior family member.
    • If multiple qualified caregivers are applying for the same senior, the total credit must be allocated equally among them unless there is a written agreement to allocate differently.

  • Relation to other tax benefits

    • The credit is in addition to any dependent deduction the caregiver may claim for the qualifying senior family member.
    • If the credit, together with other tax payments/deductions/credits, reduces tax liability to zero, the remainder of the credit is refundable as an overpayment, without interest.

  • Refundability and applicability

    • The credit is refundable; an excess beyond tax liability is paid back as a tax overpayment.
    • A qualified caregiver taxed under other provisions but not subject to the New Jersey gross income tax due to status can still apply for the credit via an annual application process.

  • Definitions

    • Qualified care expenses: Spending on tangible property and services necessary to maintain the qualifying senior family member at home or in conjunction with the caregiver or senior, including work by non-relatives; expressly excludes expenses reimbursed by insurance or state/federal programs.
    • Qualified caregiver: A New Jersey resident who provides care and support to a qualifying senior family member.
    • Qualifying senior family member:
    • Age 60+ and a relative of the caregiver; or
    • Age 50+, a relative, and eligible for Social Security Disability Insurance; and
    • Has gross income not exceeding the New Jersey Elder Index for the most recent year reported by the Department of Human Services.
    • Relative: Broadly defined to include consanguinity, in-law or civil union/domestic partner relationships within the third degree, adoptive ties within the third degree, or a close association akin to family.

Practical Impact

  • Affects caregivers who pay for at-home or related care for an older relative who meets the income and age criteria.
  • Provides a potential tax credit up to 22.5% of up to $3,000 in qualifying expenses per senior family member.
  • May be particularly valuable to households with modest to moderate income and multiple caregivers sharing responsibility.
  • Requires coordination when more than one caregiver is involved for the same senior; may require written allocation agreements.
  • The act becomes effective for tax years beginning January 1 following enactment.

Timeline

  • Effective date: Immediately upon enactment.
  • Applicable to: Taxable years beginning on or after January 1 of the year following enactment.

Sources: Bill text and accompanying statement.

Compiled from official sources — confirm details with the bill’s official record.

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