Many people who require assistance with their day-to-day lives are blessed to have family members or friends who voluntarily provide caregiving services. While caregiving is a rewarding role often performed purely out of love, the burden it can place on caregivers, particularly financially, is often overlooked.
According to AARP, approximately 3.4 million Texas residents provide an estimated 3 billion hours of unpaid family caregiving per year. At Aidaly, we aim to help family caregivers reduce their financial burden by ensuring they know and utilize the full benefits available to them in their state. Below we outline the main ways a family caregiver can receive financial assistance in Texas.
Tax Benefits in Texas
As a family caregiver in Texas, two main tax benefits are available that family caregivers, particularly parents, may qualify for. These are the Child Tax Credit and Child and Dependent Care Tax Credit.
The Child Tax Credit (CTC)
The federal Child Tax Credit allows Texas families to claim a tax credit to help contribute to the cost of raising their children. The CTC is fully refundable credit, meaning a person can receive the credit as a payment even if they don’t owe any taxes. The majority of Texas families are eligible for the benefit and can receive $3000 annually for each child they care for between the ages of 6 and 17, and $3600 for children under the age of 6. Learn more about this credit here.
The Child and Dependent Care Tax Credit (CDCTC)
The Child and Dependent Care Tax Credit is another federal tax credit family caregivers may claim. This credit allows families to be reimbursed for the costs of care incurred while they were working, looking for work, or studying. Families with incomes below $125,000 may receive up to $4,000 for one child, or $8,000 for two or more children under the age of 13 who required care for these purposes. Families with annual incomes under $438,000 can receive a partial credit. Those who provide care to adult dependents may also make a claim under the CDCTC. Learn more about this here.
Medicaid and Other State Programs
Medicaid is a program operating at the federal and state level that assists low-income families with healthcare costs. Several Medicaid and non-Medicaid programs exist in Texas that may help those who require care to compensate their family caregivers.
In Texas, multiple Medicaid programs are available that family caregivers may benefit from. Relevant programs include Medicaid for the Elderly and People with Disabilities; Medicaid for Parents and Caretakers; the STAR+PLUS Waiver, which provides care to individuals who require care outside of nursing homes; and the Community First Choice Program, focused on supporting home-based care. Find out more information about Medicaid here.
Texas also has non-Medicaid state-funded programs that aim to provide support to family caregivers. The Texas Community Care for Aged/Disabled (CCAD) Program allows family members or loved ones to be paid for providing certain types of care. The Area Agency on Aging (AAA) also provides support and benefits to eligible family caregivers in Texas counties. Find out more about support services here.
Veterans Benefits in Texas
A significant number of Veterans reside in Texas and can receive Veteran-specific benefits that may be used to help family caregivers.
Veterans Aid and Attendance Benefit
As well as the general allowances, eligible Veterans or their surviving spouses who require certain levels of care may be eligible for either the Veteran Aid and Attendance Benefit, or the Housebound Benefit.
The Veteran Aid and Attendance Benefit is for those who require the aid of another to complete their daily functions. The Housebound Benefit is for those who have a permanent disability evaluated as 100% disabling. Both of these benefits increase the monthly allowance the beneficiary can receive and can be used to pay family caregivers. Find out more about both here.
Program of Comprehensive Assistance for Family Caregivers (PCAFC) in Texas
Veterans with a disability rating of 70% or higher and who have required at least six months of continuous personal care assistance may qualify for the PCAFC. The PCAFC allows Veterans to appoint primary and secondary caregivers who may receive a number of benefits, including financial assistance for primary caregivers. Find out more about PCAFC here.
Veteran-Directed Care Program
Previously called the Veteran-Directed Home and Community Based Services (VD-HCBS) program, the Veteran-Directed Care Program allows veterans at risk of nursing home placement to receive payments to hire their own home-based caregiver, including family members. Find out more about this program here.
Determining which type of financial assistance you may be eligible for as a family caregiver in Texas can require endless hours of research. Thankfully, Aidaly is here to help and save you the hassle. Sign up today.