It is natural to want to step up and provide for a parent who is losing their memory and may use some assistance, such as your mother. This labor of devotion takes much time, but it is well worth it.
The cost is high as well. For example, the American Association of Retired Persons reports that in 2021, family caregivers spent an average of 26% of their income on caregiving activities for adult relatives.
Many people considering caring for an elderly relative or someone with special needs is unaware of the many public programs established by the government to assist with the financial burden of providing such care. Application for financing is normally required, but participation is free.
The following three methods will pay you for caring for a family member.
1. Medicaid
Medicaid is a federal and state-run health insurance program for low-income Americans. Medicaid-funded programs allow the elderly or the financially vulnerable to compensate their caretakers. Medicaid enrollment is a prerequisite for participation in these initiatives. People can join if they haven’t already by doing either of the following:
- Using the Health Insurance Marketplace’s online application
- Getting in touch with their state Medicaid office
Medicaid qualifying requirements for the Health Insurance Marketplace online application vary by state. Also assessed are the applicant’s age, income, family size, pregnancy status, and disability status.
Fill out waivers
You can get a Medicaid waiver in many states. The recipients of these waivers receive daily, tax-free payments so that they can remain in their own homes rather than enter an assisted living facility. Examples of waivers available to Californians include the Assisted Living Waiver (ALW) and the Multi-Purpose Senior Services Waiver (MSS).
Fill out an IHSS (California)
In-home assistant services (IHSS), a Medi-Cal program, can be applied for by people living in California. All those who qualify, such as the aged and the disabled, can get financial incentives to continue living in their own homes. To apply for IHSS, locals must do so through their county’s office.
2. State-sponsored programs
The state of California, for example, has several programs available to caregivers that Medicaid does not cover. The participant selects care providers in most of these programs. Furthermore, government programs may help pay for caring for kids, disabled people, seniors, and veterans. Think about looking into the programs offered in your state to learn more about the application process.
3. Having a life insurance policy
You can borrow the death benefit of several types of whole life insurance policies. However, there are other options for people who have term life insurance.
Withdrawals from life insurance policies cost the policy’s beneficiaries the money they would have received had the policyholder died. The advantages of receiving money via life insurance include the following:
- Immediate financing
- Compared to canceling the policy, this is a far better choice.
The best life insurance for seniors is available to those over 65. The premiums for older citizens are affordable, and various coverage types are available.
Caregiving for a loved one can be a taxing endeavor in and of itself. Explore the federal and state programs that could help you and your loved ones. Most of us will inevitably have to care for a family member or friend, which can be very expensive. Utilize every possible avenue.
4. Payment Made Indirectly Via a Tax Credit
Not only are you not being compensated for caring for your family member, but you may also be spending your savings to pay for home adaptations, transportation, meals, assistive devices, medical supplies, and other expenses.
Family carers spent an average of $7,000 on their loved one’s non-caregiving needs in 2016, as reported by the AARP (a membership organization for adults 50 and older with tens of millions of members).
The Credit for Caring Act of the Internal Revenue Service (IRS) allows qualifying family carers to claim a tax credit of up to $3,000 per year, equal to 30% of the amount spent on their loved one’s care that exceeds $2,000.
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