"Under the Table" Caregiver Expense

[H.Richburg]

I'm hoping someone has some experience or thoughts that will help us.  My mom, who is a surviving spouse, requires 7x24 care.  This amounts to 21 shifts per week provided as follows:

- 5 shifts M-F are are paid for by a County Program through an agency at no cost to my mom;

- 3 shifts are provided by family at no cost to my mom;

- Unless my mom is taken out for a shift by family or has a doctor's appointment, 13 shifts are provided by a team of 6 aides that work for a local hospital.  We are paying for their services "under the table" to ensure the 13 shifts are covered.  This expense exceeds her income and is quickly eating away at her savings.  Does anyone know if this expense will be accepted by the VA and if so, without repercussions to either these aides or my mom?

Thank you in advance for any assistance you can provide. 
  --Howard

[vetadmin]

Howard,

You cannot claim expenses unless you have proof of payment.  Without being able to show what she is having to pay for, you will be challenged in showing a need for the pension.  You cannot claim the services that are being provided at no costs to her.

I suggest you look at the tab on this forum for Tips and Resources and go the the Countable Income formula to determine where she stands at the end of the month for eligibility.

Those folks who are being paid under the table would have to report the income and would need to be paid by check in order to proved expenses.

[H.Richburg]

The under the table caregivers are being paid by check so I do have records including a care log (by shift) all the caregivers use.  My mom recently received food stamps by showing proof, they didn't care about the tax issues.  Also whenever she qualifies for MEDICAID they will accept my logs and cancelled checks to prove where her savings went.  They too said they aren't concerned about the tax consequences. 

I guess that is my primary question, will applying for the A&A benefits trigger any type of follow-up by the IRS or for that matter the VA? 

Thanks again 

[vetadmin]

The VA does work closely with the IRS, and the VA may ask for the names of those providing care.