Did you know about 38 percent of caregivers do their jobs for free? These caregivers report spending up to 30 hours per week providing unpaid work such as bathing, cooking and paying bills for their loved ones. Nearly half spend roughly $5,000 out-of-pocket on caregiving expenses each year, and a quarter spend at least double that. Caregiving expenses, of course, add up quickly and can place a financial burden on those who care for their aging family members and friends. There are steps you can take to meet the expenses and lessen your stress.
Assess the landscape. Before tapping into your own retirement account or the funds you’ve been setting aside for your children’s education, discuss with your parent what financial resources or plans he or she already may have in place. In addition to getting a handle on all savings accounts, retirement accounts, real estate and other property, it’s crucial to understand your parent’s insurance policies and whether they cover caregiving costs. Although some parents bristle at discussing personal finances with their children, you can explain that it’s time they allow you to help them, just as they helped you through childhood.
Talk with your employer. Your allow you to take leave or increase your paid time off. Additionally, if the company you work for offers a flexible spending account, you may be able to use it to pay for some of your parent’s care — if he or she is your dependent. Flexible spending accounts allow you to save money before it is taxed to cover specific costs, including health care. The IRS sets contribution limits, but your employer should be able to provide you the guidelines.
Be aware of tax breaks. Be aware of the tax breaks you could qualify for as a caregiver. These tax breaks are based on both your and your parent’s income levels. You may be able to claim an exemption if your parent qualifies as your dependent. If you cannot claim your parent as a dependent, you may be able to itemize and deduct your parent’s medical expenses if you are the one paying those bills. Keep an eye out for tax credits you may qualify for as well.
Keep an eye on Congress. It pays to pay attention to changing laws. A couple of years ago, lawmakers considered the Credit for Caring Act, which was meant to alleviate some of the financial burden caregivers shoulder. It did not pass, but it could be resurrected.
Ask for help. If you are sinking into a financial hole, be sure to ask for help. Are there family members or friends who can help cover some of the expenses? If you are trying to raise money for an upcoming surgery, a new wheelchair for your mother or other medical equipment, consider asking for donations. A good way to do this is to reach out to friends and family and your parent’s former co-workers through social media. Sometimes, a GoFundMe account can be used to raise money, but be sure your parent is on board with the request. Also, many foundations and associations that focus on particular diseases have suggestions for ways to raise money for care.
We at Danville Support Services have the greatest respect for families doing their best to care for their aging members. If you are like most people, quitting your job to care for mom or dad is not an option. That’s why we offer an affordable in-home care package. With this package, your parent will be able to remain independent. Our nurses genuinely care about those they support and want them to have the best experience possible! For more information about in-home care, click here.