Can You Get Paid To Take Care of a Family Member?

[Last updated October 9, 2025]

As the number of older Americans continues to grow, an increasing number of family members are stepping into the role of caregiver for an aging loved one. According to AARP, “The number of family caregivers has jumped to 63 million Americans, representing a 45 percent increase, or nearly 20 million more caregivers, over the past decade.” While this work is meaningful, caring for a loved one can have significant adverse financial effects for family caregivers, who may spend a lot on caregiving activities and supplies or may even have to cut back on work hours or forgo employment altogether to provide care. This article explores the avenues through which dedicated caregivers can get paid to take care of a family member. From government assistance to other innovative options, here are a number of programs that may compensate you as a family caregiver as well as what you need to know about each.

Medicaid self-directed services programs

If your senior loved one qualifies to receive Medicaid benefits, you may be able to get paid to take care of them. A significant option for compensation is through Medicaid waivers, specifically the self-directed care programs. These programs allow individuals receiving Medicaid to manage their own health care services, including the choice of hiring family members as caregivers. This means the Medicaid recipient can act as the employer, having the ability to hire, train, and even fire caregivers (including certain family members).

To access this payment option, caregivers need to understand the specific process involved, which typically includes becoming an approved provider and fulfilling Medicaid’s caregiver requirements. It is essential to note that these programs vary by state, making it imperative that caregivers contact their state’s Medicaid office to learn more about the available options and eligibility criteria.

How it works

To use Medicaid for paid caregiving, the person receiving care must qualify for Medicaid and be approved for home- and community-based services (HCBS). According to the Centers for Medicare and Medicaid Services (CMS), “HCBS programs help people with functional limitations who need assistance with everyday activities, like getting dressed or bathing. HCBS are often designed to enable people to stay in their homes rather than move to a facility to receive care.” 

Once approved, a care plan and budget are set up, often with the help of a case manager. The family caregiver usually needs to pass a background check, complete any required training, and sign up as a provider. After that, payments are handled through the state Medicaid office or a third-party agency that processes caregiver pay.

State examples

• California: In-Home Supportive Services (IHSS) allows recipients to hire anyone, including relatives, as paid caregivers.
• New York: Consumer Directed Personal Assistance Program (CDPAP) lets recipients hire most family members (excluding spouses) as caregivers.
• Texas: Community First Choice has a Consumer-Directed Services option that allows eligible individuals to hire a friend or family member to provide their care.

Each state has different rules about which family members can be paid. Some exclude spouses or legal guardians. Always contact your state Medicaid office or local Area Agency on Aging to confirm eligibility.

VA programs

If your family member is a Veteran, the Department of Veterans Affairs (VA) has several programs that may compensate you for your time spent providing care to a loved one.

Veteran-Directed Care (VDC)

With the Veteran-Directed Care (VDC) program, “Veterans … are given a flexible budget for services that can be managed by the Veteran or the family caregiver. Veteran-Directed Care can be used to help Veterans continue to live at home or in their community.” Eligibility depends on factors such as service-connected disability status and level of need. 

To explore VDC, speak with a VA social worker or contact your local VA medical center.

Program of Comprehensive Assistance for Family Caregivers (PCAFC)

The Program of Comprehensive Assistance for Family Caregivers provides a monthly stipend to primary caregivers of eligible post-9/11 and certain pre-1975 veterans.

The monthly stipend amount “is determined based on information gathered during the VA’s evaluation of the Veteran’s personal care needs.” The VA will assess how much hands-on help the Veteran needs, then set a stipend level based on federal pay rates. Applicants must apply together and complete caregiver training before payments begin.

State-funded caregiver programs

Some states run their own caregiver payment programs that are separate from Medicaid and may have broader eligibility. 

For example, Colorado’s Family and Medical Leave Insurance (FAMLI), launched in 2024, offers partial wage replacement to caregivers who need to take time off work to care for a loved one.

Most states list these programs on their Department of Aging or Health and Human Services websites. You can also call your Area Agency on Aging to see if your state offers a similar program.

Indirect options: Tax relief and employer benefits

The options we’ve just explored provide valuable financial support to family caregivers, but they may not be available to you. However, there are several other avenues you can pursue to reduce your financial burden, including tax credits, tax deductions, and employer benefits.

Let’s explore each.

Tax credits and deductions

There may be several options available to help alleviate your financial strain by qualifying for certain tax credits and deductions for caregivers.

You may be able to claim your relative as a dependent on your federal tax return, which can lower your taxable income. In addition, some states offer caregiver tax credits that work like partial reimbursement for out-of-pocket care costs. 

The IRS also provides guidance in Publication 502, which lists the medical expenses that may be deductible if you are paying for your loved one’s care.

Employer benefits

The Family and Medical Leave Act (FMLA) allows eligible employees to take up to 12 weeks of job-protected unpaid leave to care for a family member. Some employers go a step further by offering paid caregiver leave or flexible scheduling options, so it’s worth checking with your HR department to see what benefits are available.

Key things to know before you apply

Many of these programs come with strict rules that may limit who can qualify as a paid caregiver, with some excluding spouses or legal guardians. Many also require caregiver training and regular timesheets to maintain eligibility. Payments are usually considered taxable income and must be reported. 

In some cases, programs have long wait times or limited availability. Finally, it’s important to follow all program requirements carefully, as failing to comply can lead to a loss of benefits or even repayment obligations.

Getting paid to care for a family member is possible

It is possible to get paid to care for a family member, but it requires understanding complex rules and meeting eligibility criteria. The best first step is to contact your state Medicaid office, local Area Agency on Aging, or VA Caregiver Support Coordinator.

Getting compensation can relieve financial stress and let you keep your loved one at home longer. Finding the program that best meets your needs may take time, but it is time well spent. 

Being a family caregiver also carries with it a fair amount of responsibility. Make sure you understand the rules, keep good records, and get legal or financial advice if you’re unsure.