Family members who are financially responsible for elderly parents and providing senior in-home care in Indiana can, in some circumstances, receive payment for their services. Certain programs in Indiana allow seniors to self-direct their care and hire family members to provide in-home care. Agencies offering these programs include Indiana Medicaid, the Indiana Association of Area Agencies on Aging and the Indiana INconnect Alliance. Other ways to receive reimbursement include IRS tax credits, refunds for expenses incurred, and the Veteran Directed Care program.

Indiana Programs That Support Self-Directed Care

The Indiana Medicaid Aged and Disabled Waiver funds home-based and community support programs for seniors and others who are disabled or blind to allow them to remain in their own homes. This program allows eligible people to receive certain authorized services, including self-directed care, which permits them to hire family members to provide in-home care. Individuals qualifying for this program must be approved by their physician, be able to manage their finances and prepare a person-centered service plan. This plan defines the services to be furnished and who will provide services. They are assigned a budget for their care.

Other Indiana programs include the Indiana Association of Area Agencies on Aging Family Caregiver Program, which offers services to people caring for loved ones, parents and older relatives. Funding restrictions may apply. The Indiana INconnect Alliance can help with expediting Medicaid Aged and Disabled Waiver applications and provide resources for caregivers.

Veterans Benefits for Employing Family Caregivers

Seniors who have served in the armed forces can apply for access to the Veteran Connected Care Program. This program is a standard Veterans Health Administration package open to all enrolled veterans who meet the clinical requirements. It is accessible through certain VA offices in Indiana. The program is aimed at veterans who need assistance with daily activities. Participants have a flexible budget they can allocate to services that best meet their needs. This includes hiring personal care aides who can be family members. Veterans receiving a pension and who need assistance with their daily activities can also obtain the VA’s Aid and Attendance and Housebound allowance.

Tax Benefits for Indiana Caregivers

Taxpayers can claim deductions for certain expenses incurred as a result of caring for a dependent relative. Provided the dependent’s income is below the tax cutoff amount and the taxpayer funds more than 50% of the dependent’s living expenses, they can claim the credit for other dependents, which is a nonrefundable credit of $500. Single taxpayers caring for a dependent relative can also claim the Head of Household deduction. The taxpayer can also claim for medical expenses, provided they are more than 7.5% of their adjusted income and not reimbursed by insurance. It’s essential to keep a detailed record of these expenses, including receipts for related medical expenses.