Caregiving is a role that many people take on without expecting remuneration or recognition; however, it's important for family caregivers to know that state and federal assistance programs are in place that can offer some relief. At Aidaly, we understand that family care work can have a substantial financial and emotional impact on people's lives, and we’re dedicated to helping caregivers receive the benefits to which they’re entitled. Read on to learn about the benefits and programs you may qualify for in Indiana.
The U.S. government offers a number of options for financial relief to tax-paying citizens.
Indiana caregivers may be eligible for the following deductions and credits that can lower what you owe on your taxes.
The Child Tax Credit and the Tax Credit for Other Dependents
People who claim their children or other dependents on their federal tax return can receive up to $2,000 for each qualified dependent. These credits are fully refundable, which means you can get the money even if you owe no taxes. To receive one of these credits, you must meet certain income requirements. To learn more and discover if you are eligible, there is more information available here.
The Child and Dependent Care Tax Credit
If you paid someone to care for your dependent while at work or looking for work, you could get money back even if you owed no taxes. Up to $8,000 of what you paid for adult day programs, babysitting, day camps and daycare, or caregiving while you were working or looking for work can be claimed. To assess your eligibility, click here.
Tax Deductions for Medical and Dental Expenses
You can deduct money from your taxable income and owe less on your taxes if you spent more than 7.5% of your adjusted gross income (AGI) on medical or dental expenses that weren't paid back by your insurance. You can count any money you spend on eligible expenses for yourself, your spouse, and any dependents. Your total medical and dental spending can add up quickly. You can read more here to see if your expenses meet the requirements.
Medicaid and Other State Programs
Over 1.8 million Indiana residents are currently enrolled with Medicaid. If your loved one meets certain income and health criteria, they may be eligible for Medicaid Indiana’s assistance programs. To receive Medicaid waivers, a person has to first be enrolled with Medicaid; however, other assistance programs exist independently of Medicaid. Keep reading to discover which programs might suit you and your family.
Medicaid Waivers allow Medicaid recipients to direct their Medicaid funding directly to caregiving family members rather than to Medicaid-approved agencies. In Indiana, the following waivers are frequently used to direct funds to family caregivers.
- Freedom of Choice: Section 1915(b) Waiver
- Home and Community-Based Services (HCBS): Section 1915(c) Waiver
- Aged and Disabled Waiver
For more information about which waiver might apply to your circumstances, get in touch with your loved one’s Medicaid plan representative.
The Family Caregiver Program in Indiana
The Family Caregiver Program, also known as Structured Family Caregiving (SFC), is a program provided by Caregiver Homes of Indiana via Seniorlink. Also working with Medicaid, SFC helps caregivers access resources, technology, and guidance as well as a financial stipend to aid with caregiving responsibilities. The inclusion of legal guardians reflects an ongoing commitment by the state of Indiana to promote support programs for family caregivers. You can find more information here.
Long-Term Care Insurance
Some long-term care insurance policies may allow patients to pay someone of their choice to be their caregiver, which can include family members. Not all insurance providers offer this option; to assess whether your loved one’s plan qualifies, the insurance company should be contacted directly.
The Department of Veterans Affairs (VA) offers a range of programs to assist eligible Veterans. These programs often allow Veterans to determine who provides their care. You can find out more about Indiana’s state-specific programs here.
Veteran-Directed Care Program (VDC)
Veterans who require a caregiver can employ a family member through the VDC program. Generally, a family caregiver employed under this program will earn between $8 and $21 per hour. Veterans in Indiana who are eligible for community care, and meet the clinical criteria for the service, are eligible for this program. See what’s available here.
Program of Comprehensive Assistance for Family Caregivers (PCAFC)
With the Program of Comprehensive Assistance for Family Caregivers, you can earn a monthly stipend of up to $2,750 per month as a family caregiver to a Veteran who has a service-related disability or illness. In addition, you can access training and counseling programs to support your caregiving services. Check to see if you’re eligible here.
The Veterans Aid and Attendance Benefits and Housebound Allowance
The Aid and Attendance program provides funds in the form of a pension enhancement to qualifying Veterans in order to assist with improving their day-to-day lives. This pension is used at the discretion of the Veteran; however, it’s frequently used for caring services, which can be provided by family members. The VA also offers the related Housebound allowance for qualified Veterans and their survivors. Read more about VA pensions here.
Family caregiving can, at times, feel overwhelming — especially when it comes to financing the care your loved one needs. Sign up for Aidaly today to be a part of our supportive community and discover the other financial assistance options that are available to you.