Posted by Larry Hurt

Five ways you can get paid as a family caregiver

Five ways you can get paid as a family caregiver

The United State has about 40 million people who are either full or part-time caregivers for a family member.  Unfortunately, most of these caregivers have to reduce their work hours or go as far as quitting their jobs to provide care for a member of their families. As a result, most of them lose their post in their career or get a cut in their retirement or social security benefit. It is reported by AARP that these caregivers spend an average of $7000 every year on out of pocket cost to take care of family members. The price for patients with dementia exceeds $10,000 yearly.

But there are ways for caregivers to legally get paid for providing care to a disabled or aging family member whether they previously had jobs or not.


Caregiver contract is known as eldercare contract, personal care agreement, a caregiver contract is an agreement among family members, to ensure that an individual for a family member is compensated, especially if he or she had to let go of their job to provide care to an older adult.

Here are some gains of drawing up such contracts:

1. Clarity over caregiving functions: The care recipient may be a wealthy person, either from a lifetime of productive work or from other means. There is no ambiguity left when it relates to compensating the caregiver. Members of the family could agree to contribute a resource to pay a family member to provide the care.


The Veteran Administration (VA) offers its qualified vets are various supportive and financial programs. The concerned program in this regard is called Veteran-Directed Home and Community-Based Services (VD-HCBS) that especially pay family members to work as caregivers for a loved one at home. It is also known as Cash and Counseling for Veterans. The program permits Vets to choose their caregiver rather than the care at VA facilities

This is how it works:

The qualified recipient must get care in their homes, in their caregiver home or in independent living communities of the types that offer no support. Qualification under this law that is passed in 2010 is exclusive to veterans who got injured in a military conflict after September 11, 2001. Alongside a VA advisor, the vet must come up with an extensive "Care Plan" with a budget, needed care tasks and details concerning the family caregiver. The Care Plan may require various modification before it is approved.


This is another means to get paid for taking care of a family member, provided your state of residence has a Medicaid-type program that meets your needs for which your loved one is eligible. 

Consumer Directed Personal Assistance Program (CDPAP) is a Medicaid-funded program that permits care recipient to hire almost any caregiver of their choice, including the family member currently providing the care.

These are means of getting some benefit from this program:

To be qualified, your love one must already be part of Medicaid Program, need home care, be in control of their affair or have an assigned representative, i.e., an attorney.


If your loved one in the past has bought a long-term care insurance policy of the kind that pays for home care, then you are suitable to get the following. If it is required by the plan that the in-home care be done by a licensed home care agency, then you and your family can reach out to the nearest home care agency, and you will be gladly received.  You will be issued a caregiver contract if the policy is not restricted to licensed home care.


You are not being paid to take care of your family member, but you may be as well using your private saving for expenses relating to your loved one. 

The IRS Tax Credit for Caring acts gives qualified family members privilege to get a tax credit equal to 30% of their expenses outlaid on behalf of a family member one over $2,000 yearly, up to a maximum credit of $3,000 annually.

To be qualified for this, you need to be directly related to the care recipient. You need to help an individual of any age with physical or mental disabilities, you need to have correctly documented the expenditures, and you need to have earned a taxable income of a minimum of $7,500 for the particular year in which you claim a tax credit.

Larry Hurt
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