Financial Help for Caregivers: Grants, Tax Tips & More
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Family caregiving is often a full-time job—with none of the pay. While the emotional rewards can be deep, the financial toll on caregivers is very real. Many people find themselves reducing work hours, paying out of pocket for medical supplies, or even leaving the workforce entirely to care for a loved one.
If this sounds familiar, you’re not alone—and you’re not without options. From government grants and nonprofit programs to tax deductions and insurance benefits, there are several financial resources that may help lighten the load. Let’s break down where you can find real support as a caregiver.
Government Grants and Support Programs
While there’s no universal paycheck for caregiving, several state and federal programs offer financial assistance—if you know where to look.
One of the most widely used options is Medicaid’s Self-Directed Services (also known as “Cash and Counseling” programs). These programs allow eligible care recipients to manage their own care budgets, meaning they can use state funds to pay a family caregiver. Not every state offers this, and the rules vary, but it's worth contacting your state’s Medicaid office to find out if your loved one qualifies.
If your care recipient is a veteran, the Veterans Administration (VA) offers several support options. The Aid & Attendance benefit is designed to help veterans and their surviving spouses who need help with daily activities. Additionally, the VA’s Program of Comprehensive Assistance for Family Caregivers may offer monthly stipends, respite care, and health coverage for qualifying family caregivers of post-9/11 veterans—and it’s expanding to include older veterans, too.
Some states also offer respite grants or caregiver vouchers through aging and disability services departments. These can cover the cost of temporary help so you can take a much-needed break.
Tax Breaks and Credits for Caregivers
Many caregivers miss out on tax benefits simply because they don’t realize they’re eligible. If you’re providing substantial care and financial support to a loved one, there are a few tax options you should be aware of.
First, you may be able to claim your loved one as a dependent on your tax return—even if they’re not your child. To qualify, you must provide more than half of their financial support during the year, and they must meet IRS income and residency requirements. If eligible, this could give you access to certain credits and deductions.
Second, keep track of out-of-pocket medical expenses. If you itemize deductions and your total medical expenses (including those of your dependent) exceed 7.5% of your adjusted gross income, you may be able to deduct them.
Third, caregivers who pay for someone to care for their loved one—while they work or look for work—may be eligible for the Child and Dependent Care Credit. This can apply even if your “dependent” is an aging parent or spouse who cannot care for themselves.
It’s a good idea to speak with a tax professional who’s familiar with elder care and dependent tax law. The rules are complex, but the savings can be significant.
Long-Term Care Insurance Benefits
If your loved one purchased a long-term care insurance policy, now is the time to dig into the fine print. Many of these policies reimburse for in-home care—including care provided by family members—under specific conditions.
You’ll typically need a physician to certify that your loved one needs help with two or more “activities of daily living” (like dressing, bathing, or eating), and you may be required to submit documentation such as care logs or time sheets. Some insurers require that family caregivers be licensed or work through an agency, while others are more flexible.
If you’re unsure about the policy's terms, call the insurance company directly or work with a care advocate or elder law attorney to help navigate the claims process.
Crowdfunding and Community Support
In the age of online giving, many caregivers are turning to crowdfunding platforms like GoFundMe to raise money for medical bills, home modifications, or time off work. While it’s not guaranteed support, these campaigns can be effective when shared within a compassionate community or faith-based network.
Local nonprofits and faith organizations also often have small grants or emergency funds available for caregivers, especially if you’re facing unexpected financial hardship. Reach out to local agencies on aging, community health clinics, or caregiver support networks to see what’s available near you.
Caregiver Employment and Stipends
If your loved one is part of a Medicaid Waiver program, they may be able to designate you as a paid caregiver. In some states, this even applies to spouses. The payment may not replace a full-time income, but it can ease the financial strain and validate the work you’re already doing.
In addition, some employers offer paid family leave or stipends to employees caring for a family member. It’s worth checking with your HR department to see what benefits might be available to you. You might also ask whether your employer offers an Employee Assistance Program (EAP), which can connect you with counseling, financial planning help, or legal advice at no cost.
Caregiver Support Is Out There
Caregiving is hard enough without the added weight of financial stress. While no program will completely compensate you for the time, energy, and emotional labor that caregiving requires, there are resources that can make your role more sustainable.
Whether it’s applying for a state program, claiming tax benefits, or receiving VA support, the key is to start asking questions. The money won’t fall into your lap—but with a little research and persistence, it can absolutely show up in your bank account.
⚠️ Legal Disclaimer
This article is for informational purposes only and does not constitute financial or legal advice. AwareGiver is not a law firm or tax advisor. For personalized guidance, please consult a certified public accountant, attorney, or financial professional.