Caring for a loved one can be rewarding, but it can also put a financial strain on your family. This is especially true if you became a caregiver to a loved one unexpectedly. Even if you aren’t spending a lot of your own money, your finances may be affected because you are less able to go out and earn as much since you have less time. So, if you need help sorting out the money, then we have a guide for that! Keep reading to learn more.
Tax Benefits for Family Caregivers
Don’t miss out on any available tax benefits to help you care for your loved one without depleting your own funds. You can potentially save money on your yearly taxes simply because of your role as a caregiver. Need to know the details? For specifics we recommend that you speak with a tax professional, but the information that follows can help you ask the right questions:
- Claiming Your Loved One as a Dependent – You may be able to do this if you have provided more than half of your loved one’s support throughout the year, this includes food, lodging, transportation, and more.
- HSA and FSA – a health savings account or flexible savings account through your benefits might help if you are able to claim your loved one as a dependent. These accounts help you pay for things your insurance doesn’t cover, and they are deducted from your gross income, so you don’t pay tax on them.
- Claiming Allowable Expenses on Your Tax Return – If your loved one qualifies as a dependent, then you might be able to deduct expenses when you file your return. This includes, cab fare, mileage, tolls, parking, and other transportation expenses to help them get to their medical appointments. Medical expenses that exceed 10% of your adjusted gross income may also be itemized – although you may need to check with a tax professional to determine this.
Government Benefits for Family Caregivers
It might be worth it to do a search for government programs and local organizations that help with medical expenses for your loved one. Most states have some kind of help and are able to provide relief. Other benefits can include:
- Self-Directed Services – If your loved one has Medicaid, they may qualify for self-directed service. This means your loved one has control over who provides their caregiving services, and a budget that can be used to pay for this. If your loved one qualifies, then they are able to use the funds to pay for care, leaving more money left for other expenses.
- HUD Home Improvement Loans – If your loved one needs their home modified to accommodate their specific needs, the US Department of Housing and Urban Development has loan programs to help cover the costs.
- Veteran Benefits – If your loved one was in the military and needs assistance performing their daily activities, then they may qualify for the Aid and Attendance benefit. This is offered by the Department of Veterans Affairs and increases the pension amount your loved one receives each month. This helps to ensure that there is money available for caregiving services.
Getting Paid to Take Care of Your Loved One
There are definitely programs out there that are designed specifically to compensate family caregivers, but they may not be available in all areas. To find out more, you may want to contact Medicaid about self-directed services programs, the Program of Comprehensive Assistance for Family Caregivers through the VA if your loved one was in the military, or local charitable organizations that may be able to help. Don’t forget that if you need help or resources to help with finances, then Homewatch CareGivers of Woodbridge is here for you! Contact us today to learn more about how we can help you find what you’re looking for.