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Posted by Jim McClaflin, EA, NTPI Fellow, CTRC

Five Ways to Get Paid as a Family Caregiver

Five Ways to Get Paid as a Family Caregiver

Caregivers do forfeit their jobs and employee benefits to perform a selfless act of caring for loved ones. However, there are benefits attached to the selfless act that is not known to many. Those that qualify can use this opportunity to make cool cash while providing high-quality care to loved ones. The situation becomes a win-win for both parties.


Here are five ways to get paid as a family caregiver.

  1. Medicaid Cash and Counseling Program

Medicaid cash and counseling programs pay caregivers for the hours they spend caring for their loved ones. The requirements are the state's decision, meaning you must check the requirement and payment. The program works on the idea that Medicaid recipients in professional facilities can hire caregivers while maintaining individual preferences. The first step is to assess the recipient's needs, inform the caretaker and schedule a care plan according to the hours of work per week or month that will take to perform the care. After the assessment, a monthly amount is set with stipends. The program gives control and benefits by personalizing the care plan and ensuring the caretaker is not overworked. However, the law may differ in some states, including licensing and taxes on payment from the program.


  1. Purchase a Long-Term Care Insurance Policy

Long-term care insurance can reduce the financial burden of a caregiver. However, the plan can be expensive, and the policies are strict. People in their 50s or 60s are in the best position to buy the benefits. But they can cover medical expenses which are not under insurance. However, recipients can't apply for the program if they suffer from chronic conditions like Alzheimer's.

  1. Program Of Comprehensive Assistance For Family Caregivers

PCAF is a program organized to give financial support to caretakers caring for a family member. The Department of Health and Human Services sanctioned the program, and if you have been a voluntary caretaker, you qualify for the program. You can either apply online or by mail. The online process is done by completing a form; afterward, you'll answer some questions about yourself. If you choose the mail method, you'll fill in a questionnaire concerning your income and assets, including other benefits like Medicare or Social Security. Next, you'll attach a copy of your tax with the questionnaire and submit it to the address on the form. Once the form is accepted, the government will send you the following steps to retrieve the funds.

  1. Family Caregivers Tax Credits

The Family Caregiver and Self-Employed tax is a complicated tax system collected from home-employed persons. These caregivers may or may not be a relation to the recipient. A caregiver caring for a family member may be exempted from this tax but still have to remit employment tax on the payment. In rare cases, the payment is not reported on the caretaker's taxes even when they are not obligated to pay taxes. The direct way to enjoy the deduction is to claim an elderly family member that needs such care. The deduction will be written as medical service or other health care deductions on the tax return. However, you must pay 50% or more for their upkeep to benefit from the deductions.


  1. Veterans Aid & Attendance Pension

A veteran's aid and attendance pension are for veterans with disabilities. The veteran must have served for 90 days or more, and the severity determines the payment. However, veterans who have served for 30 days before honorable discharge can benefit from the program. The amount can be sufficient for rent, food, clothing, and other trends. However, they are not enough for healthcare. The program requires many documents, but it is simple. Your local office will have more information on it.



Jim McClaflin, EA, NTPI Fellow, CTRC
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