Caregiver Expenses

Discussion in 'General Discussion' started by roses15534, Sep 17, 2012.

  1. roses15534

    roses15534 Newbie

    Here is my question if my father who gets A&A now wants to pay my sister who cares for him and mom right now she is there most of the time she does work but can leave to check on them she cooks cleans and does erronds for them. Would that increase the amount of A&A he wold get? How would that work having your child care for you what is the dollar amount limit they could give my sister for providing for them?
     
  2. Red Headed Mommy

    Red Headed Mommy Jr. Member

    Does your father already receive the maximum amount of the A&A benefit, or does he have a partial award?
     
  3. vetadmin

    vetadmin Administrator Staff Member

    There is no limit as to how much they can pay her. From what you are saying the partial award would indicate they are not paying very much currently to offset their monthly income.
     
  4. roses15534

    roses15534 Newbie

    ok so see if I have this correct if they want to pay my sister 1000.00 a month then they do? Then what do they do as far as A&A do they file for more? Do they have to have a contract or what proof they are paying her?
     
  5. vetadmin

    vetadmin Administrator Staff Member

    They would have to submit VA form 21-4138 Statement in Support of Claim informing the VA that their monthly expenses for care have increased to the amount of $XXX. The VA will adjust the award accordingly. This will all depend on what their assets are and how much it impacts their overall finances.

    It would be recommended to draw up an informal agreement. Keep in mind your sister will need to claim these payments on her tax return.
     
  6. leebiss

    leebiss Newbie

    We have just opened the claim for my father-in-law. He is blind, and needs 24-hour care. It's all being provided by his 3 children, none of whom he is actually paying. We were thinking about including a certain number of hours, maybe 12 hours a day. Does the answer here say that we can do this, but we should have an informal agreement, and that we each would have to claim that money (which actually won't change hands) as income on our income tax returns? Or does the money actually have to change hands?
     
  7. vetadmin

    vetadmin Administrator Staff Member

    The situation you have discribed will not work. He has to actually pay for his care and to be able to show that through cancelled checks, bank statement etc.

    Those receiving payments do have to claim on their tax-return. The VA works very closely with the IRS.
     
  8. leebiss

    leebiss Newbie

    Thank you for your prompt response. A couple of more questions:
    1) I was told by the Veterans Affairs office I'm working thru that it would be better to pay a caregiver person whose last name is not the same as the veteran. I don't think that is necessary, if his son is actually taking care of him. Could you please comment?
    2) We have opened a claim for my father-in-law, but we have to submit Form 21-8416 as part of the initial claim. What should the period covered be for the initial submission of this form - 12 months, or only YTD?
     
  9. vetadmin

    vetadmin Administrator Staff Member

    !. No this is not true. Family members step up in this capacity all the time.
    2. You can show 12 months prior, but the VA works off of expenses on date of application.
     
  10. leebiss

    leebiss Newbie

    Thank you so much for all of your help. One last question (I think!).
    When filing income tax, I'm assuming that the income needs to be reported as self-employment income, rather than Miscellaneous Income. In other words, Social Security tax will need to be paid on the money. Could you please verify?
     
  11. vetadmin

    vetadmin Administrator Staff Member

    The pension is tax-free to the veteran or widow. The person being compensated as the caregiver does need to claim it as income on their personal return. As to how it is claimed, that would need to be determined by the individual and the person preparing the taxes.
     

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