Application Questions from a Newbie!

Discussion in 'How to Apply Questions' started by Southern Boy, Jul 14, 2017.

  1. Southern Boy

    Southern Boy Newbie

    First and foremost thank you for these forums, I have learned a great deal already. Thank you in advance to any who may respond to my questions. I am applying for A&A for my 92 year old WWII vet father.

    Question 1- We pay his Caregiver in cash (I have read that is a no-no and we will be changing to check) withdrawn from my father's savings account. I previously saw a link to an "Attendant Affidavit" that we will need to use in order to document this payment somewhere on these forums. I cannot find it again. Does anyone have that link they can provide to me?

    Question 2- Will this "affidavit" be all I need to document his Caregiver's payments?

    Question 3- I realize this is may be a sensitive question so I will phrase it in a way where only opinions/experiences are offered. We (my father actually) pay cash to our Caregiver and do not withhold any taxes etc. I do not know if she claims it on her taxes etc. I have relatives that are concerned that if we report these payments to her on a "Federal Form" (the A&A application), she or my father may get in trouble for not withholding or paying taxes. Does anyone have any credible knowledge of something like this happening before?

    Question 4- Section 28 on form 21-527EZ- This section has me baffled. Is this the area where you justify expenses when using the "Determining Countable Income" worksheet? Can someone explain this?
    Thank you all again!
  2. Kaylin

    Kaylin Hero Member Staff Member

    Hello @Southern Boy . Thank you for the kind words!

    Question 1: I know @Matt375 recently linked an Attendant Affidavit he has used often over the past few years. Maybe he can link that here for you?

    Question 2: The Attendant Affidavit is probably what the VA will be looking for but you can also write up a contract between the caregiver and your father if you want. Some people do that. I'll include an example below.

    Question 3: I have never heard of anyone having issues with this particular situation but that doesn't mean it hasn't happened and you're smart in asking. If you start paying her with a check she'll definitely need to start claiming it on her taxes because you don't want to get her in trouble AND you don't want any mistakes coming up that may interrupt the application process for your father.

    Question 4: There is no section 28 on the 527EZ form...Do you mean section 10? Medical, Legal, or other Unreimbursed Expenses? If so, that is where you report any ongoing medical expenses that are not reimbursed by insurance or Medicare. For instance you would list your father's monthly expenses for his caregiver here. And monthly expenses for any unreimbursed prescriptions and medications.
  3. Southern Boy

    Southern Boy Newbie

    Thank you Kaylin! You were correct, it was section 10 ( question 28). I will look for the affidavit again and if I cannot find it I will draw up a contract. I am sure I will have more questions is a couple of days but thanks again for the info. Alan
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  4. Southern Boy

    Southern Boy Newbie

    I did a Google search and found this "Attendant affidavit form." Is this the correct one?

    Attached Files:

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  5. Kaylin

    Kaylin Hero Member Staff Member

    My apologies, I forgot to include the Caregiver Contract example before. You'll find that below on this message.

    Yessir that looks like the correct Attendant Affidavit form to me!


    This CARE SERVICES AGREEMENT documents the prior verbal agreement and/or understanding made by and between the Client (the person requiring care services) and the Caregiver (the person providing care services) of said agreement.

    Services are to include the following itemized services and any others deemed necessary or desirable for the health and well being of the Client.
    · Monitoring health status to include physical and emotional condition. Coordination of doctors' appointments, transportation to appointments, consulting with doctors, keeping prescriptions up to date, picking up prescriptions, organizing and administering all medications.
    · Securing health care professionals, doctors, nurses, and home care providers as necessary.
    · Assistance with bathing, dressing, personal hygiene, grooming, and health care as needed.
    · Assessing personal needs and desires as to social, physical, entertainment, hobby, and personal pursuits as needed and or/requested by Client.
    · Assisting with instrumental daily activities to include care of pets and securing the home regarding "safety" measures as needed.
    · Financial management including weekly and monthly bill paying, daily money management, and taking care of other financial matters.
    · Dealing with other third parties to coordinate matters detailed herein.
    · Safeguarding client's rights with regard to benefits and other programs client is entitled to.
    · Manage and run home by providing all following services and any others necessary for a well-maintained home environment: planning, cooking, and serving all meals, cleaning, laundry, transportation, errands, shopping, lawn care, landscape maintenance, and minor home repairs.
    The weekly or monthly compensation paid to the Caregiver is subject to change at any time as agreed between the Client and the Caregiver. The initial arrangement is as follows.
    Hours/Days: Full time, seven days a week, 24 hours a day
    Compensation: $amount a month
    ____________________ ____________________
    Dated Client

    _______________________ __________________________
    Dated Caregiver
  6. Southern Boy

    Southern Boy Newbie

    Thank you again Kaylin. I found another thread that has me concerned now. The thread name is "In Home Caregiver Contract" under "Tips and Resources." Jr Member "Suse" wrote on entry #15 that the veteran needs to provide a caregiver a 1099 and that "VA will verify care giver payment thru the IRS." We have never given a caregiver a 1099. My dads attorney (more of a friend) said that since he does not claim caregiver payment as a deduction he should be fine. If his caregiver does not file taxes on the money we pay her and the VA does check with the IRS will that could mess this whole thing up (assuming she signs a caregiver affidavit anyway)? I have spoken with several people who have told me that essentially the VA just looks at the money numbers in and the money numbers out to make a decision, not to worry. We (my dad and family) have never ran a business and are not savy on Employment or Tax law. My dad needed help desperately and we found somebody who could help him and we just pay her. We cannot control what she does or does not file with the IRS but now it seems like my dad could possible get in trouble or have his A&A denied. Not to mention our caregiver may get in trouble (if Suse is correct) and we could lose her. I am not asking for legal guidance but I am asking for advice from those of you familiar with how this whole process works. Thanks
  7. Kaylin

    Kaylin Hero Member Staff Member

    I think you're right...if she signs the caregiver affidavit and/or the caregiver contract then the VA might check with the IRS because they work in real time with him. There's no telling whether you might be able to slide by without the caregiver paying taxes. You might get lucky and the VA might not even check that! But know that they also might ask the caregiver for all of those back taxes that she would have owed for her time as a caregiver. As you said, I can't give you the legal advice for this situation. But if you want my opinion on whether or not you should try - I think you should. I would try and apply for the benefit for my father regardless of the caregiver paying taxes in the past. As long as I knew he/she would start paying taxes going forward.
  8. Southern Boy

    Southern Boy Newbie

    Thank you Kaylin.
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  9. Matt375

    Matt375 Jr. Member

    I have yet to have the VA check into that. As long as you have receipts to what you are paying the caregiver then you should be covered. It's not up to you to make sure that the caregiver is paying taxes on the money they are receiving. Even if you did provide a 1099 all that states is this is what you were paid for the course of the year. They still have to turn around and file the reported income. Just keep receipts and copies of checks and you'll be fine.
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