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.Continue Reading
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 about Taxes
A lump sum pension payment received by an individual is subject to current federal and state income taxes on all pre-tax contributions and earnings deposited into the account, according to New York Life. As of 2015, the federal income withholding tax is 20 percent of the eligible pension funds. Funds distributed to individuals before they reach the age of 59 1/2 are subject to a 10 percent tax penalty unless there are extenuating circumstances, such as disability.Full Answer >
Foster care allowance payments vary widely dependent upon the state. In the state of Texas, the foster care allowance for a two-year-old child, a nine-year-old child or a 16-year-old teenager is $652 per month.Full Answer >
The 2014 gift tax rules include the ability for a taxpayer to make an unlimited number of tax-free gifts of no more than $14,000 each to different individuals, explains TurboTax. The lifetime tax-free allowance as of 2014 is $5.34 million.Full Answer >
If an individual is filing a 1040EZ federal income tax form electronically, it is completed, signed with a PIN number and sent to the Internal Revenue Service via its website. If the individual is physically mailing the return, its exact address depends on the state in which he lives.Full Answer >