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Getting Paid as a Family Caregiver
Dear Savvy Senior, Dear Seeking, Caring for an elder parent can be challenging in many ways, but it can be especially difficult financially if you have to miss work to provide care. Fortunately, there are a number of government programs and other tips that may be able to help you monetarily while you care for your dad. Here are some options to explore.
Medicaid Assistance Benefits, coverage, eligibility and rules differ from state to state. Program names also vary. What's called "consumer directed care" in one state, may be called "participant-directed services," "in-home supportive services" or "cash and counseling" in another. Contact your state Medicaid program to ask about its options or to start the sign-up process.
Veterans Benefits
Other Options If they agree, consider drafting a short-written contract that details the terms of your work and payment arrangements, so everyone involved knows what to expect. A contract will also help avoid potential problems should your dad ever need to apply for Medicaid for nursing home care. Also, check to see if your dad has any long-term care insurance that covers in-home care. If he does, in some cases those benefits may be used to pay you.
Tax Breaks For example, if your dad lives with you and you're paying at least half of his living expenses, and his gross income was less than $4,400 (in 2022) not counting his Social Security, you can claim him as a dependent on your taxes and get a $500 tax credit. If you can't claim him as a dependent, you may still be able to get a tax deduction if you're paying more than half his living expenses including medical and long-term care costs, and they exceed 7.5 percent of your adjusted gross income. You can include your own medical expenses in calculating the total. To see which medical expenses you can deduct, see IRS Publication 502 at IRS.gov/pub/irs-pdf/p502.pdf. Or, if you're paying for in-home care or adult day care for your dad so you can work, you might qualify for the Dependent Care Tax Credit which can be worth as much as $1,050. To claim this credit, you'll need to fill out IRS Form 2441 (IRS.gov/pub/irs-pdf/f2441.pdf) when you file your federal return. |