As of June 2014, your ability to claim a caregiver’s allowance is dependent on a number of factors, including your relationship with the individual you are caring for, the reason why you are providing care and the state you live in. That said, there a number of government programs, family payment options and tax breaks to help procure a caregiver’s allowance.Know More
Some states implement programs to help individuals pay for their caregiver of choice. In some cases, particularly “participant-directed”, “consumer-directed” and “cash and counseling programs,” you can receive an allowance for providing care to a family member.
Benefits are also available when providing care to veterans. Providing care to wartime veterans or their spouses makes you eligible for “Aid and Attendance” benefits to help for in-home care, nursing care and assisted living resources. To procure these benefits, the veteran must require assistance with daily living activities, such as changing clothes, going to the bathroom and/or bathing. Moreover, the spouse or veteran’s income must not exceed $13,362 for surviving spouses and $20,795 for veterans.
A 2010 law also provides monthly payments to primary caregivers of veterans injured in battle after September 11th. For more information on these benefits, please contact 1-877-222-VETS.
The federal government also provides tax breaks if you pay at least half of your family member’s yearly expenses and if his/her annual income does not exceed $3,900 (excluding Social Security payments). If so, you may claim your family member as a dependent on your taxes, and reduce your taxable income. You may also claim the family member you are providing care for as a dependent if the living expenses you pay exceed 10 percent of your adjusted gross income.Learn more in Taxes
According to CarsDirect, mileage reimbursement up to the federal mileage reimbursement rate is not taxable, but a standard car allowance is considered to be taxable income. If an employee is not reimbursed for mileage, he or she is allowed to list that amount as a deduction on his or her annual tax return.Full Answer >
An individual can claim head of household on his taxes only if he passes three tests. These tests are the unmarried test, the qualifying person test and the support test.Full Answer >
Withholding allowances are based on a worker's filing status, the employment status of both he and his spouse, the number of dependents he claims and whether he claims certain tax credits. For example, a single filer with no dependents and one job claims two on his W-4, one for himself and one for being single with one job, according to the IRS.Full Answer >
The IRS states that you cannot claim rent on your federal income taxes unless it is paid for property used in a trade or business. Some states allow a partial or full deduction on the state income tax return.Full Answer >