Family Care Act of 1987

Family Care Act of 1987 - Amends the Internal Revenue Code to allow a refundable income tax credit for qualified expenses incurred in the care of an individual who: (1) is related to the taxpayer by blood or marriage; (2) is at least 75 years of age (or diagnosed with senile dementia of the Alzheimer type); and (3) has an annual family income of $15,000 or less.

Allows an income tax credit of 30 percent of the expenses incurred for taxpayers with incomes of $10,000 or less. Reduces the rate of such credit, but not below 20 percent, by one percent for each $2,000 of taxpayer income in excess of $10,000.

Imposes a $3,500 limit on allowable expenses per taxable year for the care of any one qualifying individual, with a $7,000 annual maximum of total elderly care expenses subject to the credit.

Includes as qualifying elderly care expenses payments for: (1) home health agency services; (2) homemaker services; (3) adult day care; (4) respite care; or (5) certain health care equipment and supplies.

Prohibits the application of any other tax credit or tax deduction provisions to amounts subject to a credit under this Act.

Directs the Secretary of the Treasury to prepare, over a five-year period, annual reports concerning the utilization and the fiscal effects of such credit and to submit each report to the Congress.