Despite making up almost 13% of Maryland’s population, it's no secret that family caregivers do not receive adequate support and compensation. On top of the emotional and mental labor, as well as expensive care costs, an estimated $9.6 billion of unpaid care is provided by family caregivers per year in Maryland. Aidaly strives to improve access to funding for family caregivers, which is why we’ve outlined financial programs and tax benefits that you may be eligible for.
Through specific tax benefits, family caregivers can receive credits and deductions for care-related costs.
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. You must meet certain income requirements to receive the credits. To learn more and discover if you are eligible, click here. The State of Maryland also offers up to 35% of the federal credit amount back to state taxpayers; you can read more about it 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 owe no taxes. You can claim up to $8,000 of what you paid for daycare, day camps, babysitting, adult day programs, or caregiving while you were working or looking for work. Eligibility criteria is available here. Maryland also offers a Child and Dependent Care Tax Credit for state taxpayers worth up to 32% of the federal credit amount. You can read more about Maryland credits for individuals here.
Medical and Dental Expenses Tax Deductions
If your medical and dental expenses exceed 7.5% of your adjusted gross annual income (AGI), you qualify for a tax deduction. As caregiving often involves significant medical costs, it’s worth checking if you qualify. Check here to learn about eligible expenses.
Medicaid and Other State Benefits in Maryland
About 24% of Maryland residents are enrolled in Medicaid — that's almost 1.5 million people. Medicaid is a state-based program that provides health insurance and medical assistance to people who meet the specified income and health requirements. For your loved one to be eligible for some state-based support services, like in-home support services, they must first be enrolled with Medicaid. In contrast, other state programs exist independently of Medicaid.
Long-Term Services and Supports
Maryland provides special Medicaid services to people who are over 65, people with physical or intellectual disabilities, and people with chronic illness. Long-Term Services and Supports can be used to pay for in-home care, personal assistance, day programs, and other services. Find out more about what services are available, and how to apply, by visiting the Maryland Department of Health here.
Family Caregiver Support Program in Maryland
Outside of Medicaid, Maryland provides financial assistance for family caregivers, assistance that can total between $300 and $600 per year. These funds can be used for future care services and supplies or to reimburse care-related expenses. To qualify, you must be providing care to a family member verified as dependent by a doctor. Click here to visit the Department of Aging and learn more.
Veterans Benefits in Maryland
In exchange for the service and sacrifices they’ve given their country, Veterans are entitled to many benefits which can offer support to their caregivers. Most programs are offered through the Department of Veterans Affairs, while the State of Maryland offers several other benefits and programs to help Veterans.
Veteran-Directed Care (VDC) Program
Through the Veteran-Directed Care program, Veterans are able to redirect their monthly care budget towards a family member who is “hired” as a caregiver. This means the family caregiver is paid an hourly rate, generally between $8 and $21 per hour. Veterans of all ages who require assistance with daily living are entitled to the VDC. Learn more about applying for the VDC here.
Veteran Aid and Attendance Benefits and Housebound Allowance
The Veteran Aid and Attendance benefits and the Housebound Allowance are two special pension enhancements available for Veterans who need help with daily living tasks. Veterans can spend their pensions however they’d like, including paying caregivers or purchasing supplies and equipment. Read more about qualifying 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.
Family caregiving requires many sacrifices, but compensation doesn’t have to be one of them. The financial supports outlined above only scratch the surface of the pay opportunities for family caregiving in Maryland. Reach out to Aidaly today to discover a reliable network of peer support, training, and information.