1. Short title This Act may be cited as the Americans Giving Care to Elders (AGE) Act of 2018 . 2. Credit for eldercare expenses (a) In general Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section: 25E. Expenses for eldercare (a) Allowance of credit (1) In general In the case of an individual for which there are 1 or more qualifying individuals with respect to such individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the eldercare expenses paid by such individual during the taxable year. (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage means 20 percent, reduced (but not below zero) by 1 percentage point for each $4,000 (or fraction thereof) by which the taxpayer's adjusted gross income for the taxable year exceeds $120,000. (b) Definitions For purposes of this section— (1) Qualifying individual The term qualifying individual means an individual— (A) who has attained age 65, (B) who requires assistance with activities of daily living, and (C) who is, with respect to the taxpayer or the taxpayer's spouse— (i) the father or mother or an ancestor of such father or mother, (ii) the father-in-law or mother-in-law or an ancestor of such father-in-law or mother-in-law, (iii) the stepfather or stepmother or an ancestor of such stepfather or stepmother, or (iv) any other person who, for the taxable year, has the same principal place of abode as the taxpayer and is a member of the household of the taxpayer. (2) Eldercare expenses (A) In general The term eldercare expenses means the following amounts paid for expenses relating to the care of a qualifying individual: (i) Medical care (as defined in section 213(d)(1), without regard to subparagraph D thereof). (ii) Lodging away from home in accordance with section 213(d)(2). (iii) Adult day care. (iv) Custodial care. (v) Respite care.