How to Get Paid to Care for a Family Member in 2026: A Comprehensive Guide

Poppins Payroll

June 13, 2025

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-- min read

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

When people think about “getting paid,” they usually picture a paycheck. In reality, caregiver compensation can look a few different ways.

Direct pay — A stipend or hourly wage through a program
Indirect support — Tax credits or reimbursements that reduce your costs

Both can make a meaningful difference, even if they work a little differently.

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. Whether spouses are included depends 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.

Paid Care for a Family Member Infographics

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Top programs to get paid as a family caregiver in 2026

Medicaid self-directed care programs

If your loved one qualifies for Medicaid, this is often the most direct path to getting paid as a caregiver.

Many states offer “self-directed care” programs, which allow the person receiving care to choose and pay their own caregiver — including a family member.

What’s new in 2026:

Some states are increasing caregiver pay rates
More transparency around hourly wages

Because rules vary by state, your best next step is to check your state’s Medicaid program or contact your local Area Agency on Aging. All 50 states and D.C. offer some form of Medicaid consumer-directed care, but rates and rules vary widely. In 2026, senior Medicaid applicants for a Home and Community-Based Services (HCBS) Waiver are generally limited to $2,982/month in income and $2,000 in assets.

A few state-specific examples for 2026:

California – The In-Home Supportive Services (IHSS) program is implementing a statewide minimum wage of $20/hour in 2026, with some counties considering higher floors.
New York – The Consumer Directed Personal Assistance Program (CDPAP) allows family members to be paid Medicaid providers, with average hourly rates of $18-$22.
Indiana and other states – Passthrough rules now mandate that at least 80% of Medicaid funds go directly to frontline caregiver pay.

Important note for 2026: Federal proposals to reduce Medicaid spending are being discussed in Congress. Significant cuts could affect the availability of self-directed care programs. Check with your state Medicaid office for the most current information.

To find your state’s program, visit Medicaid.gov or contact your local Area Agency on Aging.

Veterans Affairs caregiver support

If you’re caring for a veteran, you may be able to receive help through Veterans Affairs’ Program of Comprehensive Assistance for Family Caregivers (PCAFC).

Depending on eligibility, you may receive:

A monthly stipend
Training and education
Access to mental health support

Payments vary based on the level of care needed — and can be a meaningful source of financial support.

What’s new in 2026: The VA has published a final rule extending the transition period for legacy participants, legacy applicants, and their paid family caregivers through September 30, 2028. This means legacy participants will not experience a decrease in monthly stipend based on a reassessment during this period (certain exceptions apply). The VA has also expanded eligibility to include veterans of all service eras.

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 them). The veteran must have a VA disability rating of 70% or higher and require at least six months of continuous in-person personal care services.

Monthly stipend ranges in 2026 depend on the veteran’s care tier:

Tier 1 (basic assistance needs): approximately $1,200-$2,000/month
Tier 2 (moderate to significant care needs): approximately $2,000-$2,500/month
Tier 3 (round-the-clock or near-constant care): approximately $2,500-$3,800+/month

The stipend is non-taxable and is adjusted annually based on OPM General Schedule pay rates. To apply, submit VA Form 10-10CG online or at your local VA medical center. For questions, contact the VA Caregiver Support Line: 1-855-260-3274.

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 - bigger than ever in 2026

Paid family leave is expanding. In 2026, more states than ever offer it.

These programs allow you to take time off work to care for a family member while receiving partial pay.

What’s new in 2026: As of 2026, 13 states and Washington, D.C. have active programs, with new states like Delaware and Minnesota joining the list.

Here are the states currently offering paid family leave:

California
Colorado
Connecticut
Delaware (new as of January 1, 2026 – up to 12 weeks for new child care or 6 weeks for family illness)
Maine (benefits begin May 1, 2026 – up to 12 weeks, 55%-90% wage replacement)
Massachusetts (maximum weekly benefit increased to $1,230.39 in 2026)
Minnesota (new as of January 1, 2026 – up to 20 combined weeks; maximum weekly benefit of $1,423)
New Jersey
New York
Oregon
Rhode Island
Washington (maximum weekly benefit increased to $1,647 in 2026)
Washington D.C.

Note on Maryland: Maryland’s PFML program has been delayed and is now expected to begin paying benefits in January 2028, not 2026 as originally planned.

These programs are funded through employee payroll deductions and allow employed caregivers to take paid time off to care for a seriously ill family member. Duration, pay rates, and eligibility vary by state. Some employers also offer paid family leave as a benefit regardless of state law. Reach out to your HR department to learn what’s available to you.

Long-term care insurance for family caregivers

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 in the policy. 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.

How to apply for paid caregiver programs

Required documentation and forms to get paid to care for a family member

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 to the care recipient
Proof of residency
Proof of income (for Medicaid eligibility)
Proof of medical need (physician documentation)
Completed program-specific application forms

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 to get paid to care for a family member

Getting started can feel like the hardest part — so here’s a simple path forward:

Step 1: Talk with your loved one
Align on what kind of support they need and how they’d like to approach payment.

Step 2: Explore programs that fit your situation
Medicaid, VA benefits, or state programs are often the best starting points.

Step 3: Ask for help if you need it
Your local Area Agency on Aging can point you in the right direction — and help you avoid dead ends.

Alternatives if you don’t qualify for any paid family caregiver 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 Credit
Flexible Spending Accounts
Private pay

Child and Dependent Care Credit (CDCTC) – Expanded in 2026

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.

Major change in 2026: Thanks to the One Big Beautiful Bill Act (OBBBA) signed into law in July 2025, the CDCTC has been significantly enhanced starting with the 2026 tax year:

The maximum credit rate increased from 35% to 50% of eligible care expenses
Income thresholds were adjusted so more middle-income families qualify for higher credit percentages
The expense limits remain $3,000 for one qualifying dependent and $6,000 for two or more
At the 50% rate, families with two or more dependents and $6,000 in qualifying expenses could receive a $3,000 credit

The credit is non-refundable, meaning it can reduce your tax bill to zero but will not result in a cash refund. Per IRS rules, the care provider cannot be a spouse, a child under age 19, or anyone you claim as a dependent. Consult the IRS website for full eligibility details.

Dependent Care Flexible Spending Accounts (FSA)

A Dependent Care FSA lets you set aside pre-tax dollars specifically for qualified child and adult care expenses, reducing your taxable income upfront.

Major change in 2026: The OBBBA increased the annual DC FSA contribution limit from $5,000 to $7,500 for married couples filing jointly ($3,750 for individuals). This means families can shield significantly more income from taxes when paying for qualified care, including elder care for work-related purposes.

Important: The CDCTC and DC FSA interact with each other. If you max out your DC FSA at $7,500 (covering $6,000 in eligible expenses for two or more dependents), there may be little or nothing left to claim under the CDCTC. Work with a tax professional to determine the optimal strategy for your specific income level and family situation.

Private pay options

For families that don’t qualify for assistance from paid programs, many use personal funds to pay for in-home caregiving.

If you and your family decide to move forward with private pay, setting things up the right way matters, for taxes, benefits, and peace of mind.

Poppins Payroll makes it simple to:

Pay a family caregiver correctly
Handle taxes and filings automatically
Keep everything organized and compliant

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.

This means:

The paying family member must withhold Social Security and Medicare taxes (FICA)
They must pay federal and applicable state employer taxes
You should receive a W-2, not a 1099
Proper payroll records are required to claim tax credits like the CDCTC

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.

Quick summary

If you’re looking to get paid to care for a family member in 2026, here’s what to keep in mind:

You may be able to get paid through Medicaid, VA programs, paid family leave, or state-specific programs
Some options offer direct pay, while others provide tax savings or reimbursements
Eligibility, pay rates, and rules vary by state and program
If you’re paid directly by a family member, you’re typically considered a household employee, not an independent contractor
Setting things up correctly helps you stay compliant and access tax benefits

It can feel like a lot but you don’t have to figure it out all at once. Start with the option that best fits your situation, and take it one step at a time.

Learn more about how to get paid to care for a family member: key programs and links

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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