New Jersey would let some family caregivers deduct care costs

Eligible taxpayers could subtract qualifying care costs from the income used to calculate their New Jersey income tax. Covered relatives are parents, grandparents, aunts, and uncles, including step-relatives and relatives by marriage, who are age 70 or older. New Jersey gross income must be under $200,000 and no more than four times the federal poverty level for the household, including the relative. The taxpayer and relative must live together for the entire tax year. Costs must be reasonable and necessary for care and support, such as food, housing, and medical care. Reimbursed costs and costs already deducted from gross income would not count. Taxpayers must keep receipts or other proof. If enacted, the law would take effect immediately. The deduction would apply to tax years beginning on or after January 1 of the year following enactment.