This bill would give people credit toward their Social Security benefits if they spend time caring for family members without getting paid. Right now, if you stay home to care for a child, elderly parent, or disabled relative, those years don't count toward your Social Security record—which means you could end up with a smaller retirement check later. This bill would change that by giving you "deemed wages" (credited earnings) for up to five years of unpaid caregiving.

Here's who this affects: Anyone taking time out of the workforce to care for young children under 12, or to care for older relatives or disabled family members who need daily help with basic activities like bathing, eating, or managing finances. The bill would credit you with earnings equal to about half the national average wage for each month you provide at least 80 hours of unpaid care. This credited income would be counted when calculating your Social Security benefits, potentially boosting your retirement income.

The bill includes some important limits. You can only get credit for up to five years (60 months) of caregiving, and the credit only applies to months before you reach retirement age. You'd need to apply and provide documentation—like a doctor's letter explaining why your relative needs care—to prove you qualify. The goal is to recognize caregiving as valuable work and ensure that people who sacrifice their careers to care for loved ones don't face reduced retirement security as a result.

Social Security Caregiver Credit Act of 2023

Murphy, Christopher

Social Security Caregiver Credit Act of 2023This bill credits certain individuals who provide at least 80 hours of care per month to dependent relatives without monetary compensation with up to five years of deemed wages (determined by a specified formula) for purposes of determining their Social Security benefit amounts. However, if an individual is otherwise entitled to a larger benefit amount, this provision shall not apply.