If you're caring for an aging parent, disabled spouse, or veteran family member, you may not realize that you can be compensated for the care you're already providing. Many family caregivers assume payment isn't possible or don't know where to start, but government programs, insurance policies, and legal agreements can provide financial support ranging from $1,000 to $4,000 per month or more.
Getting paid as a family caregiver isn't always straightforward. Eligibility depends on your loved one's needs, income level, and which programs are available in your state. Some programs pay hourly rates similar to professional caregivers, while others offer monthly stipends or tax credits. The process typically takes one to six months from application to first payment. Many states restrict spousal payments in Medicaid programs, though VA benefits and personal agreements often allow them. New tax credits introduced in 2025 may provide additional financial relief.
This guide will walk you through the main programs that pay family caregivers, how to determine if you qualify, what documentation you'll need, and the step-by-step process for applying and receiving compensation.
Key Takeaway
Family caregivers can receive payment through Medicaid self-directed programs, VA caregiver benefits, long-term care insurance, or personal care agreements, with compensation typically ranging from $10 to $30 per hour or $1,000 to $4,000 monthly, depending on the program and your state.
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Contact your state's Area Agency on Aging at 800-677-1116 or eldercare.acl.gov to schedule a free needs assessment and learn which programs are available in your area.
Gather essential documents including your loved one's medical records, proof of income and assets, proof of your relationship, and both of your government-issued IDs so you're ready when applications open.
Use the National Council on Aging's Benefits CheckUp tool at benefitscheckup.org to quickly screen for programs your loved one may qualify for, and check irs.gov for 2025 updates on new caregiver tax credits.
What programs pay family caregivers and how much?
Short answer:
Medicaid self-directed programs, VA caregiver benefits, long-term care insurance policies, and personal care agreements are the main ways family caregivers receive payment, with amounts ranging from state minimum wage to $30 per hour or fixed monthly stipends of $1,000 to $4,000 (higher in some high-cost states).
The landscape of paid family caregiving includes several program types:
Medicaid self-directed or waiver programs
As of 2025, all states offer some form of Home and Community-Based Services waivers, with over 45 states allowing family payments through self-directed options. Programs like Cash and Counseling, Structured Family Caregiving (growing in states like Georgia and Pennsylvania), or consumer-directed personal assistance allow payment at state-set rates, which vary from minimum wage to $20 per hour or more in higher-cost areas. Some payments may be tax-free depending on the structure. You'll apply through your state Medicaid office at medicaid.gov. For comprehensive guidance on Medicaid planning, see our article on Medicaid planning for dementia care.
VA Program of Comprehensive Assistance for Family Caregivers
If you're caring for a veteran with service-connected disabilities who needs assistance with daily activities, this program provides monthly stipends of $2,576 to $4,128 based on care level and location (2025 rates, adjusted annually). The program originally covered post-9/11 veterans but expanded in 2020-2021 to include veterans from earlier eras, with full implementation completed. Benefits also include health insurance for the caregiver, training, and respite care. Apply online at va.gov or call 855-260-3274. For more details on VA benefits, see our comprehensive guide on veterans benefits for dementia care.
Long-term care insurance
If your loved one has a long-term care insurance policy, review it carefully for informal caregiver clauses. In 2025, more policies include cash benefit options that allow family reimbursement. Some policies will reimburse family members for approved caregiving services. Contact the insurance company directly to understand the claims process and required documentation. Learn more in our guide about long-term care insurance and dementia.
Personal care agreements
These are legal contracts where your loved one pays you directly from their own funds for specified caregiving services. Rates should reflect fair market value, typically $15 to $25 per hour depending on your location and the type of care provided. A properly structured personal care agreement protects both parties and prevents Medicaid penalties by documenting that payments are for services rendered, not gifts. These can be implemented immediately after drafting by an attorney. For help with legal planning, see our guide on legal planning after dementia diagnosis.
Quick comparison of caregiver payment programs
| Program | Typical Payment | Eligibility Highlights | Application Time |
|---|---|---|---|
| Medicaid Self-Directed | $10–$20/hour (20–40 hrs/week) | Low income/assets; care needs assessment | 1–3 months |
| VA PCAFC | $2,500–$4,000/month | Veteran with disabilities; family member | 2–4 months |
| LTC Insurance | Reimbursement up to policy limits | Existing policy with caregiver clause | Varies by insurer |
| Personal Care Agreement | $15–$25/hour (private funds) | No program eligibility; legal contract | Immediate (after drafting) |
Am I eligible to be paid as a family caregiver?
Short answer:
You're generally eligible if you're 18 or older, provide substantial care to a qualifying family member who meets program requirements for income and care needs, and meet any state-specific rules about which family members can be paid. No U.S. citizenship is required for most programs, though background checks are standard.
Eligibility has two parts: your qualifications and your loved one's qualifications.
Requirements for you as the caregiver
- Must be at least 18 years old in most programs
- Must be a family member or legal relative (definitions vary by program)
- Must provide substantial, regular care, typically measured in hours per week
- Will need to pass a background check depending on the program
- In many Medicaid programs, spouses cannot be paid caregivers, though VA benefits and personal agreements often allow spousal payment
- Must be able to complete any required training, usually offered for free
- No U.S. citizenship required in most programs
Requirements for your loved one
- Must need assistance with activities of daily living like bathing, dressing, eating, toileting, or transferring
- Must meet income requirements, often under 138% of the federal poverty level for Medicaid programs (for 2025: $20,783 for an individual or $27,861 for a couple)
- Must have limited assets, typically under $2,000 to $3,000 for an individual depending on the state
- For VA programs, must be a veteran with service-connected disabilities requiring at least six months of assistance
- Must be willing to participate in a consumer-directed care program where they choose their caregiver
The best way to determine eligibility is through a professional needs assessment, which your Area Agency on Aging can arrange for free. They'll evaluate your loved one's care needs and help you identify which programs you may qualify for.
What documents do I need to apply for paid caregiver programs?
Short answer:
You'll need your loved one's medical records documenting care needs, proof of income and assets for both of you, government-issued IDs, proof of your relationship, and a completed needs assessment from a healthcare provider or state agency. For 2025 digital applications, scan documents using apps like Adobe Scan.
Gathering documentation before you start the application process will save significant time. For help organizing financial accounts and documentation, see our guide on organizing financial accounts after dementia diagnosis.
Medical and care documentation
- Recent physician's statement describing care needs and limitations
- Medical records showing diagnoses that require ongoing assistance
- List of current medications and treatments
- Documentation of disabilities or cognitive impairments
- Completed activities of daily living assessment
Financial documentation
- Your loved one's most recent tax returns or proof of income
- Bank statements and asset documentation
- Social Security award letters
- Veterans benefits statements if applicable
- Proof of any current insurance coverage
Personal identification
- Government-issued photo IDs for both you and your loved one
- Social Security cards
- Proof of relationship such as birth certificates, marriage certificates, or legal guardianship papers
- Proof of residence for both parties
Program-specific forms
- Medicaid application if not already enrolled
- Physician's order for home care services
- Training certificates once completed
- Background check authorization
Keep copies of everything you submit. Many programs require annual recertification, and having organized records makes renewals much easier.
How do Medicaid self-directed programs work for family caregivers?
Short answer:
Medicaid self-directed programs give your loved one control over their care budget, allowing them to hire you as a paid caregiver at state-determined rates, typically through a fiscal intermediary who handles payroll and tax withholding.
Self-directed Medicaid programs are often the most accessible option for family caregiver payment:
How the programs work
Once your loved one is approved for Medicaid home care services, they can choose to participate in a self-directed or consumer-directed option. Instead of the state assigning a home health agency, your loved one receives a care budget and the authority to hire their own caregivers, including family members. A fiscal intermediary or agency usually handles the administrative tasks like payroll processing, tax withholding, and workers' compensation insurance.
Common program names by state
Programs have different names depending on where you live. Look for terms like Consumer Directed Personal Assistance Program, Self-Directed Care, Cash and Counseling, Participant Direction, or Structured Family Caregiving. In 2025, states like Pennsylvania expanded their Community HealthChoices waivers to make family hiring easier. Your state's Medicaid office can tell you which programs are available locally.
The application process
First, your loved one must qualify for and enroll in Medicaid if they're not already receiving benefits. Next, they apply for home and community-based services, which requires a care needs assessment. During the application or after approval, they indicate they want to participate in the self-directed option. Once approved, they formally hire you as their caregiver, and the fiscal intermediary sets up payment.
What to expect for payment
Hourly rates are set by the state and typically range from minimum wage to $20 or more per hour in higher-cost areas. The number of hours you can be paid for depends on your loved one's assessed care needs, usually between 20 and 40 hours per week, though this varies. Some programs cap the total monthly amount. Payments are typically made by direct deposit every two weeks or monthly.
Training requirements
Most programs require you to complete basic caregiver training before you can begin receiving payment. Training is usually free and covers topics like personal care, infection control, and emergency procedures. Some states offer the training online, while others require in-person sessions. The training typically takes 8 to 75 hours depending on your state and federal minimum requirements.
How does the VA caregiver program work?
Short answer:
The VA Program of Comprehensive Assistance for Family Caregivers provides monthly stipends, health insurance, training, and respite care to family members caring for veterans with serious service-connected injuries who need help with daily activities. Stipends are adjusted annually, with 2025 maximums reaching approximately $4,128 in high-cost areas.
If your loved one is a veteran, VA caregiver benefits may provide substantial support. For comprehensive details, see our guide on veterans benefits for dementia care.
Eligibility requirements
The veteran must have a serious injury or illness incurred or aggravated in the line of duty on or after September 11, 2001, or during service in any era (the program expanded in 2020-2021 to include pre-9/11 veterans with full implementation now completed). The veteran must need at least six months of personal care services for help with activities of daily living or supervision due to cognitive impairment. The caregiver must be a family member or live with the veteran, and the veteran must agree to receive care from them.
Benefits provided
Monthly stipend payments range from approximately $2,576 to $4,128 depending on the level of care the veteran requires and geographic location, calculated using local nursing home costs and adjusted annually. The primary family caregiver also receives health insurance through the VA if they don't have coverage elsewhere, reimbursement for travel expenses related to the veteran's care, access to mental health services and counseling, respite care to provide breaks from caregiving, and comprehensive caregiver training.
How to apply
You can apply online at va.gov/family-member-benefits, by phone at 855-260-3274, or through your local VA medical center. The application requires medical documentation of the veteran's condition and care needs, information about the proposed caregiver, and details about the caregiving arrangement. A VA clinical team will conduct an in-home assessment to evaluate needs and determine the appropriate level of support. Use online portals for faster processing.
Timeline and approval
The application and approval process typically takes two to four months. Once approved, benefits begin retroactive to the application date in some cases. The program requires regular reassessments, usually annually, to ensure continued eligibility and appropriate stipend levels.
The VA caregiver program is often more generous than other options and provides comprehensive support beyond just financial compensation.
What is a personal care agreement and when should I use one?
Short answer:
A personal care agreement is a legal contract where your loved one pays you directly from their own funds for caregiving services at fair market rates, particularly useful when they don't qualify for government programs but have personal assets to compensate you.
Personal care agreements offer flexibility when other programs aren't available:
What makes it legally valid
A proper personal care agreement is a written contract that specifies the services you'll provide, your hourly rate or monthly payment based on fair market value in your area, the schedule and frequency of care, payment terms and methods, and duration of the agreement. The contract should be created before caregiving begins or as soon as possible after, signed by both parties, and ideally notarized. It's strongly recommended to have an elder law attorney draft or review the agreement to ensure it meets legal requirements. For guidance on getting legal documents in order, see our article on getting dementia legal documents signed.
Why you need one
Without a formal agreement, payments from your loved one to you could be considered gifts for tax purposes or Medicaid planning. This can create problems if your loved one needs to apply for Medicaid within five years, as the payments might be counted as improper asset transfers subject to penalties. A properly structured personal care agreement demonstrates that payments are compensation for services, not gifts, protecting both Medicaid eligibility and preventing family disputes about money. Learn more about Medicaid planning to understand these implications.
Setting fair compensation
Research typical caregiver rates in your area, usually $15 to $25 per hour depending on location and the complexity of care. Consider what a professional home care agency would charge for similar services. Document the specific tasks you perform and the hours you work. Be realistic about the level of care required, as this affects appropriate compensation.
Tax and legal considerations
Your loved one may need to withhold taxes from your payments and provide you with a W-2 if you're considered an employee, or issue a 1099 if you're an independent contractor. You must report this income on your tax returns. Consult a tax professional about the proper classification and reporting. Keep detailed records of all payments and services provided.
When to use this option
Personal care agreements work best when your loved one has sufficient personal assets to pay you but doesn't qualify for government programs due to income or asset limits, when you want to formalize an existing informal arrangement, or when other family members need clarity about financial arrangements. Find an elder law attorney through the National Academy of Elder Law Attorneys at naela.org. For help finding legal assistance, see our guide on how to find an elder law attorney.
How do I actually apply and start getting paid?
Short answer:
Start by applying for the underlying benefit program your loved one qualifies for, complete the required needs assessment, select the family caregiver option during the application process, complete any mandatory training, and begin logging your hours once approved.
The application process follows a general sequence:
Step one: Apply for underlying benefits
If your loved one isn't already receiving Medicaid, VA benefits, or other qualifying programs, that application comes first. For Medicaid, apply through healthcare.gov or your state's Medicaid office website. For VA benefits, apply at va.gov or call 855-260-3274. Use online portals for faster processing. This step alone can take one to three months for approval.
Step two: Request a care needs assessment
A healthcare provider or state agency representative will evaluate your loved one's care needs, typically in your home. They'll assess ability to perform activities of daily living, cognitive function, medical conditions requiring assistance, and safety concerns. This assessment determines eligibility for home care services and the number of hours of care that will be authorized.
Step three: Indicate family caregiver preference
When applying for home care services, clearly state that your loved one wants to direct their own care and hire a family member as their caregiver. Some programs have specific forms or sections for this, while others handle it during the assessment interview. Make sure this preference is documented in the application.
Step four: Complete required training
Once approved for the program, you'll need to complete caregiver training before payment begins. Training is typically free and available through the Red Cross, AARP, state aging agencies, or online platforms. Topics usually include personal care techniques, safety, infection control, and communication. Training can take anywhere from a few hours to several days depending on the program.
Step five: Set up payment and begin caregiving
You'll complete employment paperwork with the fiscal intermediary or VA, provide direct deposit information for payments, and begin tracking your caregiving hours and tasks. Most programs require you to submit timesheets weekly or monthly. Payments typically begin one to two weeks after your first submitted timesheet is approved.
Ongoing requirements
Keep detailed logs of the care you provide, including dates, times, and specific tasks. Submit timesheets according to the program's schedule. Complete any required continuing education or annual recertification. Report any significant changes in your loved one's condition or care needs. Expect the approval process from initial application to first payment to take anywhere from one to six months depending on the program and your state.
What tax benefits are available for family caregivers?
Short answer:
Family caregivers may be eligible for the Dependent Care Credit (20 to 35% of up to $3,000 or $6,000 in expenses), Credit for Other Dependents ($500), medical expense deductions, and potentially new federal and state caregiver tax credits introduced in 2025.
Tax benefits can provide additional financial relief beyond direct payment:
Current federal tax benefits
If your loved one qualifies as your dependent, you may claim the Dependent Care Credit for 20 to 35% of up to $3,000 in expenses for one dependent or $6,000 for two or more, with maximum credits of $1,050 to $2,100. You can claim the Credit for Other Dependents worth $500 for non-child dependents if your loved one is your dependent but doesn't qualify for other credits. Medical expenses you pay on behalf of your dependent that exceed 7.5% of your adjusted gross income can be deducted if you itemize deductions. The 2025 tax reconciliation increased FSA limits to $7,500 for dependent care expenses.
Emerging federal legislation
The Credit for Caring Act (S.925 and H.R.2036), introduced in March 2025, is currently pending in committee. If passed, it would provide a nonrefundable tax credit of up to $5,000 for eligible family caregivers, covering 30% of expenses over $2,000 for caregivers earning at least $7,500 annually. A Multigenerational Home Caregiver Tax Credit (S.3295) was introduced in December 2025 and could provide $2,000 per relative for in-home care. Check irs.gov for updates on these bills and their passage status.
State-level tax credits
As of 2025, over 10 states have expanded caregiver tax credits or deductions. For example, California offers credits up to $3,000. The availability and amounts vary significantly by state. Some states offer credits for specific expenses like home modifications or respite care. Check with your state's department of revenue or a local tax professional to learn what's available in your area.
Reporting caregiver income
If you receive payment through government programs or personal care agreements, you must report this as taxable income unless specifically exempted by the program. Some Medicaid waiver stipends may be tax-free if classified as difficulty of care payments for in-home caregivers. VA caregiver stipends are generally not taxable income. Always consult a tax professional about your specific situation to ensure proper reporting and maximize available benefits.
Keep receipts for all caregiving expenses including medical supplies, transportation to appointments, home modifications, and respite care, as these may be deductible or eligible for credits.
What challenges should I expect when getting paid as a family caregiver?
Short answer:
Common challenges include long application wait times, complex paperwork, limited hours or payment amounts, potential impacts on your loved one's other benefits, caregiver burnout, and state-specific restrictions like not being able to pay spouses. However, 2025 funding increases in some states have reduced waitlists.
Being realistic about potential obstacles helps you prepare:
Application and administrative hurdles
The application process is often lengthy and requires significant documentation. You may face months of waiting between application and first payment. Paperwork can be confusing, and requirements vary by program and state. Some programs had waiting lists due to limited funding, though 2025 funding boosts in some states have reduced these. You might need to reapply or recertify annually with updated documentation.
Payment limitations
The number of hours you can be paid for may be significantly less than the hours you actually provide care. Hourly rates may be lower than what professional agencies charge. Some programs cap total monthly compensation regardless of care needs. Payment may not cover all the caregiving tasks you perform. You might not be eligible to be paid at all in states that restrict spousal payments under certain Medicaid programs.
Impact on benefits
Receiving payment could affect your loved one's eligibility for certain means-tested programs if not structured correctly. Your income from caregiving could impact your own benefits eligibility. Personal assets used to pay you through a personal care agreement could trigger Medicaid penalties if not properly documented. The financial dynamics of payment can create family tension or questions. For guidance on managing family discussions about finances, see our article on how to ask siblings for help.
Caregiver burnout and support
Being paid doesn't eliminate the emotional and physical demands of caregiving. You may still experience stress, exhaustion, and social isolation. Balancing paid caregiving with other work or family responsibilities is challenging. Access respite care through the National Family Caregiver Support Program (which provides up to $2,000 per year in respite and stipends through the ACL) or VA benefits to get regular breaks. Connect with caregiver support groups through AARP, Caregiver Action Network at caregiveraction.org, or local organizations. Learn to recognize the signs of caregiver burnout and practice setting healthy boundaries.
Legal and tax complexity
Understanding employment classification, tax withholding, and reporting requirements can be confusing. Personal care agreements require legal expertise to structure correctly. Different programs have different rules about what you can and cannot do. Professional guidance from elder law attorneys and tax advisors is often necessary but adds cost.
Despite these challenges, thousands of family caregivers successfully navigate these programs each year. Starting with clear information and professional guidance makes the process more manageable.
What resources can help me navigate the process?
Short answer:
Contact your local Area Agency on Aging, use online screening tools like Benefits CheckUp, connect with caregiver organizations like AARP and Caregiver Action Network, and consult with elder law attorneys and financial advisors for personalized guidance.
You don't have to figure this out alone:
Government resources
The Eldercare Locator at eldercare.acl.gov or 800-677-1116 connects you to your local Area Agency on Aging, which provides free information, assessments, and application assistance. Your state's Medicaid office at medicaid.gov has information about self-directed programs in your area. The VA Caregiver Support Line at 855-260-3274 offers help with veteran caregiver benefits. The National Council on Aging's Benefits CheckUp at benefitscheckup.org quickly screens for programs you may qualify for. The National Family Caregiver Support Program through the ACL provides up to $2,000 per year in respite care and stipends.
Caregiver organizations
AARP Foundation's Paid4Care Hub provides state-by-state guides and application help. Caregiver Action Network at caregiveraction.org offers educational resources, support groups, and advocacy. Family Caregiver Alliance at caregiver.org has comprehensive information about paid caregiving programs. Local caregiver support groups can share firsthand experiences and practical advice. Learn more about what to expect from caregiver support groups.
Professional advisors
Elder law attorneys can draft personal care agreements, advise on Medicaid planning, and ensure legal compliance. Find attorneys through the National Academy of Elder Law Attorneys at naela.org. For detailed guidance, see our article on how to find an elder law attorney. Tax professionals can help with proper income reporting, maximize deductions and credits, and navigate employment tax issues. Financial advisors can help plan for long-term care costs and integrate caregiver compensation into overall financial planning. For broader financial planning guidance, see our guide on financial planning for dementia care.
Online communities
Facebook groups and online forums for family caregivers offer peer support and shared experiences. State-specific caregiver groups can provide localized information about programs and processes. Many caregivers find it helpful to connect with others who have successfully navigated the same programs.
The key is to start by contacting your Area Agency on Aging, as they can provide personalized guidance based on your specific situation and location.
How CareThru can help with getting paid as a family caregiver
Applying for paid caregiver programs requires tracking complex information, managing multiple deadlines, and coordinating with various agencies and family members. The documentation requirements alone can be overwhelming when you're already providing full-time care.
CareThru helps you organize all the information you'll need for applications in one accessible place. Store your loved one's medical records, medication lists, diagnosis information, and insurance details so you can quickly provide documentation when needed. Keep track of application deadlines, assessment appointments, and training requirements with reminders that help you stay on top of the process.
Once you're approved and receiving payment, CareThru makes it easier to log the care you provide, track hours for timesheet submission, and document the specific tasks you perform. You can maintain a clear record of your caregiving activities, which is essential for program compliance and annual recertification.
Whether you're just starting to explore paid caregiving options or you're already receiving compensation and need better organization, CareThru helps reduce the administrative burden so you can focus on providing quality care.
Frequently Asked Questions About Getting Paid as a Family Caregiver
Can I get paid to take care of my elderly parent?
Yes, you can potentially get paid to care for your elderly parent through Medicaid self-directed programs available in over 45 states, if they have long-term care insurance that covers family caregivers, through a personal care agreement funded by their assets, or by claiming available tax credits. Eligibility depends on your parent's income (typically under $20,783 for individuals in 2025), assets (under $2,000 to $3,000 depending on state), care needs, and your state's specific programs.
Can I get paid to take care of my spouse?
It depends on your state and the specific program. Many Medicaid self-directed programs restrict spousal payments, while others allow them. The VA Program of Comprehensive Assistance for Family Caregivers does allow spouses to be paid caregivers. Personal care agreements between spouses are legally complex and may not be advisable for Medicaid planning purposes, so consult an elder law attorney before pursuing this option.
How much do family caregivers typically get paid?
Family caregiver compensation typically ranges from $10 to $20 per hour through Medicaid programs, with higher rates in high-cost states like California reaching $25 or more per hour. VA caregiver stipends range from approximately $2,576 to $4,128 per month based on care level and location (2025 rates). Monthly compensation through most programs falls between $1,000 and $4,000, though the exact amount depends on authorized hours, care level, and program type.
How long does it take to get approved for paid caregiver programs?
The approval process typically takes one to six months from initial application to first payment. Medicaid applications can take one to three months for the underlying benefit approval, then additional time for home care services and self-directed program enrollment. VA caregiver program applications typically take two to four months. Personal care agreements can be set up more quickly once drafted and signed, limited only by your loved one's ability to make payments.
Do I have to pay taxes on money I receive as a family caregiver?
In most cases, yes. Income from Medicaid self-directed programs, personal care agreements, and long-term care insurance is generally taxable and must be reported on your tax return. Some exceptions exist for certain Medicaid difficulty of care payments for in-home caregivers. VA caregiver stipends are generally not considered taxable income. Consult a tax professional about your specific situation to ensure proper reporting.
What if my loved one doesn't qualify for Medicaid due to income or assets?
If your loved one has too much income or too many assets for Medicaid eligibility, consider a personal care agreement where they pay you directly from their funds, review their long-term care insurance policy for family caregiver provisions, look into state-specific caregiver programs that may not have income limits, or explore whether VA benefits might apply if they're a veteran. You may also be eligible for tax credits even without direct payment.
Can I work another job while being a paid family caregiver?
Yes, you can typically work another job while being a paid family caregiver, but you must actually provide the caregiving hours you're being paid for. Most programs pay for a specific number of hours per week (often 20 to 40), leaving time for other employment. However, full-time care situations or higher care level stipends may be based on more intensive caregiving commitments. Review your specific program requirements to ensure compliance. For guidance on balancing work and caregiving, see our article on talking to your employer about caregiving.
What happens if my loved one's condition worsens and they need more care?
Most programs allow care plans to be reassessed and adjusted as needs change. Contact the program administrator to request a new assessment when your loved one's condition changes significantly. This may result in authorization for additional hours or a higher care level with increased compensation. Some programs have maximum limits, at which point they may recommend facility-based care or additional services from other sources. For guidance on recognizing when care needs are increasing, see our article on signs dementia is getting worse.
What new tax credits are available in 2025?
Two major caregiver tax credits were introduced in 2025 and are pending in Congress. The Credit for Caring Act (S.925 and H.R.2036) would provide up to $5,000 for 30% of expenses over $2,000 for caregivers earning at least $7,500 annually. The Multigenerational Home Caregiver Tax Credit (S.3295) could provide $2,000 per relative for in-home care. Check irs.gov for updates on passage. Additionally, over 10 states expanded their caregiver tax credits in 2025, with some offering up to $3,000.
Informational disclaimer:
This article provides general information about compensation options for family caregivers and is not legal, financial, or tax advice. As of December 2025, program details may change and should be verified with official sources. Program availability, eligibility requirements, and payment amounts vary significantly by state and individual circumstances. Consult with elder law attorneys, tax professionals, and your local Area Agency on Aging for guidance specific to your situation.