State-specific financial assistance is available for family caregivers to reduce the financial burdens of caring for a loved ons. Family caregivers often work for free, adding financial strain to those already experiencing increased stress. The economic value of this unpaid care work in Georgia is estimated to be $13.2 billion. 

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Tax Benefits in Georgia

Family caregivers in Georgia are entitled to tax benefits that aim to alleviate some of the financial pressures associated with caregiving 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. To receive one of these credits, you must meet certain income requirements. To learn more and discover if you are eligible, there is more information available here.

The Child and Dependent Care Tax Credit 

If you paid someone to care for your loved one while at work or looking for work, you could get money back even if you owed no taxes. 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 can be claimed. Even better, Georgia automatically gives 30% of the federal credit’s value to state taxpayers, up to a maximum of $672 on top of the federal credit. To assess your eligibility, click here.

Medical and Dental Expenses Tax Deductions

If you spent more than 7.5% of your adjusted gross income (AGI) on medical or dental expenses that weren't paid back by your insurance, you can deduct that money from your taxable income and owe less on your taxes. You can count any money you spend on eligible expenses for yourself, your spouse, and your dependents so your total can add up quickly. There are no income restrictions for this program, and you can read more here to learn about eligible expenses.

Medicaid and Other State Programs

Around 2,100,000 Georgians are enrolled in Medicaid, offering health insurance and family caregiver support programs for people who meet age, income, and health status criteria. Georgia Medicaid offers at least nine programs which can help family members of people who are elderly, disabled, or living with chronic illnesses. Click here to find out what your loved one may qualify for.

Structured Family Caregiving Plan 

The Structured Family Caregiving (SFC) program is a part of Georgia’s Elderly and Disabled Waiver Program, which uses Medicaid funding to pay for caregiving and community support services. If you are caring for a family member that you live with, who is not your spouse or legal responsibility, you may qualify for a weekly stipend. An important benefit is that the weekly stipend is tax-free — the funds deposited into your account are yours to spend. Your family member must be enrolled in an eligible Georgia Medicaid program, so talk to their case manager to find out more.

Qualified Caregiver Expense Credit

The Qualified Caregiver Expense Credit is a nonrefundable credit offered to cover 10% of care expenses for a dependent family member — up to $150. This family member must be 62 years old or older or qualify as disabled in accordance with the Social Security Administration and be a current taxpayer or related to a taxpayer.  

Veterans Benefits

The Department of Veterans Affairs (VA) offers a range of programs to assist elderly Veterans or those disabled in the line of duty. Often these programs allow Veterans to select or pay their own caregivers. Alabama also honors Veterans with its own benefits; learn more about those here.

The Veterans Aid and Attendance Benefits and Housebound Allowance

The Aid and Attendance program provides funds in the form of a pension enhancement to qualifying Veterans in order to assist with improving their day to day lives. This pension is used at the discretion of the Veteran; however, it’s frequently used for caring services, which can be provided by family members. The V) also offers the related Housebound allowance for qualified Veterans and their survivors. Read more about VA pensions here.

Program of Comprehensive Assistance for Family Caregivers (PCAFC)

This program supports the caregiver for a dependent individual who is either a Veteran or a member of the Armed Forces with a medical discharge who has incurred a serious illness or injury while active in the U.S. Armed Forces. The PCAFC provides a monthly stipend to the primary family caregiver, along with counseling and other support. Check here to see if your loved one may be eligible.

Veteran-Directed Care (VDC)

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.

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Finding the right financial support can alleviate the stress of caring for a loved one. With Aidaly, you can dedicate more time and energy into the things that matter.