Can I get paid as a family caregiver? Yes, here’s how

Serving as a family caregiver to an older loved one is, inarguably, extraordinarily hard work. According to AARP research, around 38 million people in the U.S. provide unpaid care to family members. On average, unpaid family caregivers not only lose out on wages, but spend an average of 26% of their household income on caregiving costs — from home modifications to therapists, medical equipment and in-home care needs. 

This financial stress, on top of the mentally and emotionally taxing job of providing care for an elderly loved one, has taken a serious toll on caregivers, with research from AARP finding that 50% of caregivers feel that caregiving has increased their level of emotional stress.

Given the high — literal — costs to family caregivers, not to mention the physical and emotional toll, many wonder: Can I get paid to take care of my mother, father or family members? Yes, here’s how.

How much can I get paid as a family caregiver?

When it comes to family caregiver pay, programs vary state by state, as well as by circumstance. Many of these offerings, such as Medicaid’s self-directed services, allow a certain amount of an individual’s Medicare funds to be allocated to a family caregiver. The amount that you receive will vary based on the state you reside in, the plan you have in place, and the amount of care required.

Here’s another example using the Veteran Directed Care Program (more on this shortly): In California, eligible family caregivers of veterans can earn between $8-$21 per hour through The Veteran Directed Care (VDC), up to $3,261 per month through the A&A Pension, up to $1,882 per month through the Housebound Pension benefit, or up to $2,750 per month through the Program of Comprehensive Assistance for Family Caregivers (PCAFC).

Tax credits for family caregivers also vary by state and situation. At the state level, New York residents can claim up to $3,000 in tax credits through the Child and Dependent Tax Credit (CDCTC). Federally, up to $6,000 worth of care expenses can be claimed through the CDCTC.

Can family caregivers get paid through the government?

Yes, here are a few programs to consider.

Medicaid

If your loved one is a Medicaid recipient, they may be able to hire you as a paid caregiver. Most states offer Medicaid waiver self-directed long-term services and supports (LTSS) programs, which allows Medicaid participants to maintain decision-making authority over their own care and how their Medicaid funds are spent.

There are several self-directed options states offer, including self-directed personal assistant services in which participants select and train their own provider and decide how much to pay them and waivers for those who prefer to get home and community-based care, which are referred to as Home & Community Based Services (HCBS). Some states also offer Structured Family Caregiving programs through a partnership with the organization Caregiver Homes. Family caregivers can be paid through this program if their loved one is a Medicaid recipient.

Medicaid, which targets low-income Americans, seniors, people with disabilities and a few select other groups, has certain income requirements. Determine the eligibility requirements first to find out if your loved one qualifies for Medicaid. If so, contact your state’s Medicaid office to get more information about self-directed services and whether you can become a paid family caregiver.

Administration on Aging & Department of Aging Services

Other government programs may be able to offset some of your caregiving costs. Each state has several local agencies that are part of the Administration on Aging (AAA), many of which provide resources like:

• Respite care (in which you can hire a caregiver to care for your loved one while you take some much-needed time for yourself).
• Meal plans.
• Mobility assistance programs.
• Housing.
• Caregiver training, and other supplemental services.

Visit Eldercare.gov to find contact information for your local AAA agency.

In addition, it may be worthwhile to contact your state’s department of welfare or health and human services to find out what cash or medical assistance programs or support programs may be available to help with some of your family’s caregiving costs and responsibilities.

Make sure you keep records of all your caregiving expenses throughout the year, because you may be able to use this information to get the Dependent Care credit, which can equal up to 50% of your employment-related expenses.

Veterans programs for family caregivers

If your loved one is a veteran, they may qualify for the Veteran Directed Care Program.

This program is designed for veterans who need daily assistance and for caregivers who need extra help. Veterans or their family caregivers are given a budget to manage their care and help them age in place in their own home or community. With the budget, a veteran can hire a family member or another person to provide in-home care and buy the necessary items or services to help them manage their own care.

The U.S. Department of Veterans Affairs also provides what’s known as Aid & Attendance, which increases a veteran’s monthly pension if they are bedridden and need treatment, if they are a patient in a nursing home, are visually impaired or if they need a regular caregiver to help with their daily activities, which can be a family caregiver or another individual. 

The agency also offers benefits for veterans who are housebound. To apply for these benefits, contact your state’s pension management center and submit the A&A application form (VA Form 21-2680).

Are there additional options and resources for family caregivers?

If you don’t qualify for government or veterans programs, there are still other resources available to help family caregivers.

Long-term care insurance

Long-term care insurance is usually the first and best option, and some of these policies may even pay for a family member to provide care. The American Association of Long-Term Care Insurance provides several helpful guides and information resources to help consumers learn more.

Personal care agreements

Personal care agreements are another option to get paid for providing care to a loved one. Under these agreements, an elderly relative would enter into a contract with a family member to provide care. Though this arrangement may seem odd or uncomfortable, it can ease some of the financial costs that come with caregiving. Just be sure to consult an elder law attorney to advise on how to draw up the contract to protect both parties and to outline any tax obligations.

Check to see if your employer offers an elder care program or benefit. Companies like Bank of America, Deloitte, Microsoft and NBC Universal are a few examples of companies who offer these benefits.

Tax deductions

Tax deductions also can help to offset caregiving costs. Make sure you keep records of all your caregiving expenses throughout the year, because you may be able to use this information to get the Dependent Care credit, which can equal up to 50% of your employment-related expenses.

To qualify for caregiving-related deductions, you must be responsible for more than 50% of the costs for your loved one’s support, your loved one must be a dependent, spouse or qualifying relative (i.e. an aging parent) and they must be below a certain gross income.

Elder care program or benefit

And if you’re juggling caregiving and a full-time job, your employer might offer an elder care program or benefit. Companies like Bank of America, Deloitte, Microsoft and NBC Universal are a few examples of employers who offer elderly caregiving benefits. During the pandemic, law firms like McDermott Will & Emery and Greensfelder, Hemker & Gale saw the need for elder care benefits during the pandemic and now offer care services and coaching to employees who are caring for elderly loved ones. 

Is more help for family caregivers on the horizon?

Caregivers’ need for financial assistance is not going unnoticed. Hawaii became the first U.S. state to provide this benefit through the Kupuna Caregivers Act, which can provide up to $70 per day to cover expenses such as healthcare and transportation. 

The bipartisan RAISE (Recognize, Assist, Include, Support and Engage) Family Caregivers Act requires the U.S. Department of Health and Human Services to outline a strategy to help caregivers through federal programs, workplace policy changes, and more.  

As of May 2021, eleven U.S. states offer paid family leave for caregivers, providing full or partially paid leave for caregivers who need time off to care for a family member. Though it’s currently up to the states to decide whether or not to protect these benefits by law, many political figures continue to advocate for making paid family leave mandated at the federal level.

Even if additional resources come to pass, the benefits received won’t amount to the average full-time salary. But caregivers know that every additional bit of financial support can help adjust to this life-altering situation.