A New Tax Credit for Care Expenses

September 28, 2026

Connecticut's Family Caregiver Tax Credit: What Families Should Know

Families often take on significant costs while helping a loved one remain safely at home. Connecticut has enacted a new personal income-tax credit for certain taxpayers who pay eligible expenses for the care and support of an eligible family member. The credit was included in Public Act 26-68, the state's 2026 budget adjustment act.

This is a new tax provision, so families should confirm the rules for their own circumstances before relying on a particular expense or amount. The Connecticut General Assembly's official bill record confirms the credit's enactment. The final law and guidance from the Department of Revenue Services determine who may claim it and how.

What the Credit Is Intended to Do

The credit is intended to provide tax relief for certain family caregivers who incur qualifying costs while supporting a family member. It is a credit against Connecticut personal income tax, not a direct payment for caregiving hours and not a Medicaid benefit.

News coverage during the legislative process described examples such as respite care, medical equipment, home accessibility changes, and paid caregiving help. Because those examples were reported while the bill was moving through the legislature, families should check the enacted law and current state tax instructions to confirm which expenses qualify.

How It Differs from Adult Family Living

Connecticut's Adult Family Living program is a structured care arrangement that may provide a stipend to an approved caregiver for caring for an eligible adult at home. The tax credit is different: it concerns eligible expenses paid by certain taxpayers for an eligible family member. Qualifying for one does not automatically mean a family qualifies for the other.

Families can read more about the separate Adult Family Living option and its assessment and program requirements.

What Families Can Do Now

• Keep invoices, receipts, and proof of payment for care-related expenses.
• Note who received the care, the service or item purchased, and when the expense was paid.
• Do not assume that every caregiving expense qualifies; eligibility depends on the final statutory rules and tax guidance.
• Ask a qualified tax professional how the credit applies to your household and whether any expense has already been reimbursed or claimed elsewhere.
• Check the Connecticut Department of Revenue Services for current forms, filing instructions, and the first tax year covered by the credit.

The legislature's action recognizes that family caregiving can bring real out-of-pocket costs. The credit may offer relief to some Connecticut households, but it does not replace a care assessment or guarantee that a particular family or expense qualifies. For background on the measure as it advanced, see Connecticut Public's reporting; for tax questions, use the enacted law and current state guidance.

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