Financial Help for Family Caregivers
By Jim Miller
If taking care of an aging parent is causing you financial hardships, there are several programs, tax breaks and support services that offer some financial relief that few people are aware of. Here’s what you should know.
Caregiving for Pay
If your parent is eligible for Medicaid, you may be able to get paid a small amount by the government. In 15 states, Medicaid offers a Cash and Counseling program (see
cashandcounseling.org) that provides direct financial assistance to their beneficiaries, and that money can be used to pay in-home caregivers. A few other states have similar programs for low-income seniors, even if the person receiving care doesn’t quite qualify for Medicaid. To find out about these options contact your local Medicaid office or visit
benefitscheckup.org – an online service that helps seniors and their families find and enroll in federal, state, local and private benefit programs.
Other Options
If your parent has financial resources of their own, find out if he or she can afford to pay you. If they agree, it may be a good idea for both of you to draft a short written contract detailing your work and payment arrangements. Or, if your parent has long-term care insurance that includes in-home care coverage, in some cases those benefits can be used to pay you.
Tax Breaks
The IRS may also be able to help you out if you can show that you pay at least half of your parent’s yearly expenses, and their annual income was below $3,650 in 2009 (not counting Social Security). If so, you can claim him or her as a dependant on your taxes, and reduce your taxable income by $3,650. Your parent doesn’t have to live with you to qualify as a dependent. IRS Publication 501 (see
www.irs.gov/pub/irs-pdf/p501.pdf or call 800-829-3676 to get a copy mailed to you) has a worksheet that can help you with this.
If your parent’s income, however, is over $3,650, you can’t claim them as a dependent. But if you’re paying at least half their living expenses, you can still get a tax break if you’re helping pay their 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. See the IRS publication 502 (
www.irs.gov/pub/irs-pdf/p502.pdf) for details.
Support Services
If you don’t qualify for caregivers pay or a tax break, you can still get some financial relief through the National Family Caregiver Support Program (NFCSP). This is a federally funded program that provides aid for specific caregiver needs like respite care or adult daycare to give you a break, counseling and support groups, and supplemental services including the purchase of medical supplies, SOS emergency response systems and even home modifications. In addition to the NFCSP, you should also check into home delivered meal programs, volunteer companion programs, and even home and personal care services. These, too, can lighten your load. To locate all the various programs and support services near you, contact your Area Agency on Aging. Call the Eldercare Locator at 800-677-1116 to get your local number or visit www.eldercare.gov.
Savvy Tip: The bestWeb resource to search for caregiver support services and programs in your area is the Family Caregiver Alliance at
caregiver.org. When you get there, click on “Family Care Navigator,” or call 800-445.8106.