Bill Text: NJ A5340 | 2026-2027 | Regular Session | Introduced
Bill Title: Provides gross income tax credit to qualified family caregivers for care and support expenses incurred for qualifying family members.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced) 2026-06-28 - Introduced, Referred to Assembly Aging and Human Services Committee [A5340 Detail]
Download: New_Jersey-2026-A5340-Introduced.html
Sponsored by:
Assemblyman BRIAN BERGEN
District 26 (Morris and Passaic)
SYNOPSIS
Provides gross income tax credit to qualified family caregivers for care and support expenses incurred for qualifying family members.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a gross income tax credit to qualified family caregivers for expenses paid or incurred to provide care for qualifying family members and supplementing chapter 4 of Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A qualified family caregiver shall be allowed a credit against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to the qualified care and support expenses paid or incurred by the qualified family caregiver during the taxable year for a qualifying family member, not to exceed $3,000 in a taxable year, or $5,000 in a taxable year if the qualifying family member is a veteran or individual with a disability.
b. Except as otherwise provided in subsection e. of this section, to claim the credit allowed pursuant to this section, the qualified family caregiver shall attach documentation to any return which the qualified family caregiver is required to file under N.J.S.54A:1-1 et seq., in a form and manner prescribed by the director, substantiating the qualified care and support expenses paid or incurred by the qualified family caregiver during the taxable year. Such documentation shall include, but shall not be limited to:
(1) itemized receipts or invoices from service providers that clearly identify the qualifying family member as the beneficiary;
(2) canceled checks, credit card statements, or other proof of payment corresponding to the itemized receipts or invoices;
(3) home modification expenses, contracts and paid invoices detailing the nature of the modifications and their purpose in supporting the qualifying family member;
(4) certification from a licensed physician or licensed health care professional indicating the necessity of assistive devices, medical equipment, or supplies for the care of the qualifying family member;
(5) documentation that the qualifying family member co-resides with the qualified family caregiver, which documentation may include a caregiver log, affidavit, or other form of verification as prescribed by the director; and
(6) any other additional requirements and procedures the director deems necessary to prevent fraud and ensure proper substantiation of qualified care and support expenses.
c. (1) If a qualified family caregiver is allowed a credit in accordance with subsection a. of this section and, during the same taxable year, is allowed a dependent deduction in accordance with paragraph 2 of subsection (b) of N.J.S.54A:3-1 for the qualifying family member whose care and support is the basis for the credit allowed in accordance with subsection a. of this section, the qualified family caregiver shall be allowed to claim both the deduction and the credit in determining the tax otherwise due for the taxable year under N.J.S.54A:1-1 et seq.
(2) If a qualified family caregiver is allowed a credit in accordance with subsection a. of this section and, during the same taxable year, is allowed a credit under N.J.S.54A:4-15 for the qualifying family member whose care and support is the basis for the credit allowed in accordance with subsection a. of this section, the qualified family caregiver shall be allowed to claim both credits in determining the tax otherwise due for the taxable year under N.J.S.54A:1-1 et seq.
d. If the credit allowed in accordance with subsection a. of this section, together with any other payments and any other credits, deductions, and adjustments allowed by law, reduces the tax liability otherwise due for the taxable year under N.J.S.54A:1-1 et seq. to zero, the amount of the credit remaining shall be paid to the qualified family caregiver as a refund of an overpayment of tax in accordance with N.J.S.54A:9-7; provided, however, that subsection (f) of that section, concerning the allowance of interest, shall not apply.
e. A qualified family caregiver who is not subject to tax in accordance with N.J.S.54A:2-4 for a taxable year shall apply for the tax credit allowed under this section using an annual application as shall be made available by the director, which application shall be filed with the director on or before the date for filing annual gross income tax returns. The director shall determine the form and manner by which a qualified family caregiver shall apply for a refund of an overpayment of tax, and the time of the refund of the overpayment of tax.
f. In the event that two or more qualified family caregivers provide care for the same qualifying family member, the total amount of credit claimed by all qualified family caregivers shall not exceed $3,000 in a taxable year, or $5,000 in a taxable year if the qualifying family member is a veteran or individual with a disability.
g. As used in this section:
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Disability" means, with respect to an individual, any medically documented physical or mental impairment as defined in the federal "Americans with Disabilities Act of 1990," 42 U.S.C. s.12101 et seq. "Licensed health care professional" means a registered nurse, licensed practical nurse, advanced practical nurse, physician assistant, physical therapist, occupational therapist, or dental hygienist licensed pursuant to Title 45 of the Revised Statues.
"Licensed physician" means a physician licensed by the State Board of Medical Examiners.
"Qualified care and support expenses" means expenses paid or incurred by a qualified family caregiver for the purchase, lease, or rental of tangible personal property and services that are necessary to allow a qualifying family member to reside with the qualified family caregiver, which property and services are provided: to, or for the benefit of, the qualifying family member; to assist the qualified family caregiver in providing care and support to the qualifying family member; or by an organization or an individual who is not a relative of the qualified family caregiver or the qualifying family member. "Qualified care and support expenses" shall include, but shall not be limited to, expenses paid or incurred by a qualified family caregiver for: the purchase, lease, or rental of health care equipment or supplies or assistive devices; home health agency services, adult day care, companionship services, personal care attendant services, homemaker services, respite care, or home modification services; services necessary to provide care and support to a qualifying family member in connection with two or more activities of daily living; or transportation services related to medical care or obtaining qualified care and support services. "Qualified care and support expenses" shall not include expenses paid or incurred by a qualified family caregiver that are reimbursed by insurance or by a program administered by the State or federal government.
"Qualified family caregiver" means a resident individual of this State who provides care and support to a qualifying family member.
"Qualifying family member" means an individual who: is a relative of a qualified family caregiver; resides with the qualified family caregiver as a member of the qualified family caregiver's household; and is 62 years of age or older, is a veteran, or is an individual with a disability.
"Relative" means an individual who is: (1) related by blood or adoption, including a parent, grandparent, great-grandparent, child, grandchild, great-grandchild, sibling, aunt, uncle, niece, and nephew; (2) related through marriage, civil union, or domestic partnership to an individual who is related by blood or adoption to one's spouse, including the same relationships as described in paragraph (1) of this definition; or (3) an individual who has resided with the qualified family caregiver as a member of the qualified family caregiver's household for at least 12 consecutive months immediately preceding the taxable year.
"Veteran" means any citizen and resident of this State honorably discharged or released under honorable circumstances from active service in any branch of the Armed Forces of the United States.
2. This act shall take
effect immediately and apply to taxable years beginning on or after the January
1 next following the date of enactment.
STATEMENT
This bill provides a gross income tax credit to qualified family caregivers who pay or incur qualified care and support expenses for the care and support of a qualifying family member who is 62 years of age or older, is a veteran, or is an individual with a disability.
A qualified family caregiver would be allowed to claim a gross income tax credit in an amount not to exceed $3,000 in each taxable year for qualified care and support expenses paid or incurred by the qualified family caregiver during the taxable year for the care and support of a qualifying family member. The maximum credit amount would be $5,000 in each taxable year for a qualifying family member who is a veteran or individual with a disability. To claim the tax credit, the qualified family caregiver would be required to provide documentation to substantiate that the qualifying family member resides with the qualified family caregiver. If multiple caregivers provide care for the same individual, the total credit cannot exceed $3,000 for all caregivers, or $5,000 for all caregivers if the qualifying family member is a veteran or individual with a disability.
The credit may be claimed in addition to the dependent deduction that may be received by the qualified family caregiver for claiming the qualifying family member as a dependent on the qualified family caregiver's gross income tax return. The credit may be claimed in addition to the existing veteran care credit that may be available to the qualified family caregiver under current law. The bill also provides that the tax credit would be refundable, meaning that if the credit reduces the qualified family caregiver's tax liability to an amount less than zero, the remaining credit would be refunded to the caregiver as an overpayment of tax. The bill further provides that a qualified family caregiver is eligible to receive the refundable credit, even if the caregiver has gross income below the statutory minimum subject to tax.
The bill defines a "qualifying family member" as an individual who: (1) is a relative of a qualified family caregiver; (2) resides with the qualified family caregiver as a member of the qualified family caregiver's household; and (3) is 62 years of age or older, is a veteran, or is an individual with a disability. A "relative" includes an individual related by blood, adoption, marriage, civil union, or domestic partnership, including a parent, grandparent, child, grandchild, great-grandchild, sibling, aunt, uncle, niece, nephew, and step-relative, as well as an individual who has resided with the caregiver for at least 12 consecutive months immediately before the taxable year. The bill defines "disability," with respect to an individual, as any medically documented physical or mental impairment as defined in the federal "Americans with Disabilities Act." The bill also defines "veteran" as any citizen and resident of this State honorably discharged or released under honorable circumstances from active service in any branch of the Armed Forces of the United States.
The bill defines "qualified care and support expenses" as the expenses paid or incurred by a qualified family caregiver for the purchase, lease, or rental of tangible personal property and services that are necessary to allow a qualifying family member to reside with the qualified family caregiver, which property and services are provided: to, or for the benefit of, the qualifying family member; to assist the qualified family caregiver in providing care and support to the qualifying family member; or by an organization or an individual who is not a relative of the qualified family caregiver or the qualifying family member. "Qualified care and support expenses" also includes expenses paid or incurred by a qualified family caregiver for: the purchase, lease, or rental of health care equipment or supplies or assistive devices; home health agency services, adult day care, companionship services, personal care attendant services, homemaker services, respite care, or home modification services; services necessary to provide care and support to a qualifying family member in connection with two or more activities of daily living; or transportation services related to medical care or obtaining qualified care and support services. However, expenses paid or incurred by a qualified family caregiver that are reimbursed by insurance or by a program administered by the State or federal government are not considered "qualified care and support expenses."
