Senate Approves Measure to Provide Tax Break for Care of Elderly Relatives

The full Senate has given approval to a measure that would allow an income tax deduction for taxpayers who support a relative over the age of 70.

Sen. Andrew Rice, author of Senate Bill 725, said the measure was authored to ease the burden on middle class families who care for both their children and their elderly parents.

“Adults in Oklahoma who are in the position of caring for both their children and parents can really feel the pinch of that financial responsibility,” said Rice, D-Oklahoma City. “We’ve seen a high number of people in Oklahoma County that are faced with this situation.”

Under the provisions of the bill, the relative must have lived with the taxpayer at least six months during the calendar year. Additionally, taxpayers must provide at least half of the relative’s financial support. The deduction would be available to taxpayers with a gross income of less than $35,000, or $50,000 for married joint filers.

“Providing for a family at this income level can be challenging, and this bill should provide much-needed relief,” Rice said. “Taxpayers in Oklahoma are allowed to deduct their children and we wanted this middle group who may be caring for both their children and their parents to be able to claim this additional deduction.”

Rice said the exemption could also keep more elderly Oklahomans in the care of their families, rather than in nursing homes.

“This enables adults who may be caring for their parents to keep them in the home,” Rice said. “This should reduce the amount the state has to pay on nursing homes and Medicaid reimbursements, and it enables taxpayers to have more resources to provide care for their parents or relatives in the home.”

The bill will now advance to a House committee for consideration.