The Comprehensive Guide to Getting Paid to Care for a Family Member [2025 Edition]

Published: June 13, 2025

Poppins Payroll

Key Takeaways

If you’re caring for a family member, you’re probably familiar with all the work that it entails: doctor’s appointments, meal prep, medication management, emotional support, and more. It’s already a full time job! What if you could actually get paid for the hard work you do as a caregiver?

There are a few different programs, including Medicaid, VA, and state family leave, that you and your family might be able to utilize to help offset some of the costs of being a family caregiver. Read on as we dive into the details of each of these programs and other ways you may be able to get financial support.

[TOC]What “getting paid” to care for a family member actually means

“Getting paid” usually conjures up a pretty specific vision: cash in hand! But when it comes to getting paid as a family caregiver, things can be a little more complicated.

Depending on the program you use to get paid as a family caregiver, you may get paid directly or indirectly. Direct payment is that cash in hand you’re picturing, often via a stipend. Indirect payment is something like a tax credit, where you don’t receive funds directly, but you do get compensated in another way for your efforts.

Who is considered a family caregiver?

A “family caregiver” typically means someone who is related to the person needing care, such as their adult children, siblings, grandchildren, etc. Sometimes spouses are included in this definition, and sometimes they are not, depending on the state or program. It is always a good idea to double-check with the program you are using to make sure you are following their guidelines for family caregiving and how to pay caregivers.

[TOC]Top programs that pay family caregivers

Medicaid self-directed care programs

If your loved one qualifies for Medicaid, there are programs available that may offer payments to family caregivers. These programs vary by state, and they are often called “Consumer-Directed Services” or a “Consumer-Directed Personal Assistance Program.” With these programs, the family caregiver gets paid by Medicaid for their services.

For example, in California, the program is called In-Home Supportive Services and in New York, the program is called Consumer-Directed Personal Assistance Program. Each state-run program has its own eligibility requirements and rates of pay. The one requirement that everyone must meet is that the loved one needing care must qualify for Medicaid. Beyond that, some states may have requirements for caregivers, like training hours or certifications. If you are interested, you should reach out to your state’s program to learn more and apply.

Veterans Affairs caregiver support

If you are a family caregiver for a veteran, you may be able to receive help through Veterans Affairs’ Program of Comprehensive Assistance for Family Caregivers (PCAFC). This is a program that offers multiple benefits for caregivers, including mental health counseling, caregiver education, and even a stipend, if qualified.

To qualify as a caregiver, you must be an adult, and be a spouse, child, parent, stepfamily member, or extended family member of the veteran, or live full-time with the veteran. There are also requirements the veteran must meet, such as being enrolled in VA health care and needing at least six months of continuous, in-person personal care services. To see if you might qualify, check out the VA website.

State-specific paid family caregiver programs

If the person you’re caring for doesn’t qualify for Medicaid, some states offer additional paid family caregiver assistance. For example, New York offers the Expanded In-Home Services for the Elderly (EISEPP) program for older adults who need help with everyday activities, but do not qualify for Medicaid. In certain areas, EISEP may have a Consumer Directed In-Home Services option that would allow family caregivers to receive direct payments from the state.

Here are some other states with supplemental caregiving programs:

California: The Family Caregiver Support program offers respite care, legal advice, and many other support services. However, it doesn’t offer direct compensation.
New Jersey: The Jersey Assistance for Community Caregiving program offers respite care, transportation, and many other support services. It also doesn’t offer direct compensation.

To see if your state offers a similar program, search online for “non-medicaid caregiver services in (state)” or a similar term.

Paid family leave through your employer or the state

Across the country, the Family and Medical Leave Act (FMLA) allows eligible employees of covered employers to take 12 weeks of unpaid leave in a 12-month period for eligible reasons, like the birth or adoption of a child or caring for a seriously-ill family member. But FMLA being unpaid can be a financial burden, so some states have enacted Paid Family Leave programs.

Funded by employee payroll deductions, these programs enable employed caregivers to take paid time off to care for their loved one. Duration and pay rates vary by state.

Nine states (plus D.C.) currently offer paid family leave, with Delaware, Maine, Maryland, and Minnesota joining the ranks in 2026.

If you’re interested in taking paid family leave, be sure to reach out to your employer to learn more and start the process. If you’re in a state without a paid family leave Some employers may offer paid family leave as a benefit, regardless of state laws.

Long-term care insurance

Only about 3% of Americans have long-term care insurance, but if your loved one is part of that rare club, it may cover payments to family caregivers. To check your policy for information on caregiver coverage, search for “informal caregiver” clauses. Some policies don’t offer family caregiver payments, but if yours does, there will likely be strict requirements to qualify, so be sure to dig into the details.

[TOC]How to apply for paid caregiver programs

Required documentation and forms

The required documentation for getting a family caregiver paid depends on the program you are using. Some common documentation that is required includes:

Proof of relationship
Proof of residency
Proof of income
Proof of medical need.

Make sure to pay attention to details and deadlines that the program you use sets forth, so you don’t miss anything important.

Steps to apply

Step 1: Talk to your loved one.
Ask what programs they may be eligible for and how they prefer to handle payment.

Step 2: Choose a program.
Once you've identified a program, contact it directly to learn about the specific steps, requirements, and enrollment process.

Step 3: Need help?
If you're unsure which program to choose—or if no programs apply—reach out to your local Area Agency on Aging for guidance. (Each state has their own Area Agency on Aging; for example, here is the California Department of Aging.)

[TOC]Alternatives if you don’t qualify for any paid programs

If you don't qualify for any government-run assistance programs or employer-provided paid family leave, there are other options you can consider. These include:

Child and Dependent Care Credits
Flexible Spending Accounts
Private pay

Child and Dependent Care Credit

The Child and Dependent Care Credit is a tax credit offered by the IRS for qualifying individuals who paid for care to enable them or their spouse to work or actively look for work. For example, if your loved one used Poppins Payroll to pay you for care as a household employee, they could potentially claim this tax credit to help offset those costs, assuming certain conditions are met. (According to the IRS, the care provider cannot be a spouse, a child under the age of 19, or anyone you claim as a dependent). Check out the IRS website to learn more about exact qualifications and how to claim this credit.

Dependent Care Flexible Spending Accounts (FSA)

A Dependent Care FSA is a type of flexible spending account that earmarks pre-tax funds just for qualified child and adult care expenses. The IRS determines what is a qualified expense. Typically, “custodial elder care” for work-related purposes is qualified, meaning if you are acting as a family caregiver so a family member can go to or find work, this is likely qualified. For example, if your loved one pays you as a caregiver with Poppins Payroll, they could potentially get reimbursed for those expenses with pre-tax funds via their Dependent FSA.

Private pay options

For families that don’t qualify for assistance from paid programs, many use personal funds to pay for in-home caregiving. Poppins Payroll can help with how to pay a family caregiver while staying compliant. Poppins Payroll takes care of employer registration, calculations, payments, tax returns, and more. You shouldn’t have to worry about anything but your loved one getting the best care possible.

Legal and tax considerations for household employees

If a family member is paying you directly for care, you’re considered a household employee—not an independent contractor. That means they must withhold and pay taxes, and follow state and federal rules. A service like Poppins Payroll can handle the paperwork and compliance for you!

Looking for a simple solution? Explore Poppins Payroll's services to streamline the process and ensure you’re making the right choice for your family.

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Disclaimer: This information is provided for general educational purposes and should not be considered tax, legal, financial, or HR advice. Poppins Payroll offers payroll services for household employers, but we do not provide professional advisory services. Household employment and caregiver compensation are subject to complex and evolving rules and regulations, which vary by state and program. Before acting on this information,, please consult a qualified tax professional or attorney for advice specific to your situation.

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