My father has a long-term care policy. It reports a
1099-LTC form and is HIPAA approved. This policy can
pay me, his son, $11,000 a year for taking care of him. Social
Security? Medicare? What forms would I need?
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| Past Carenotes |
Location: Bonita Springs
Time: 10:46 AM
If it is a LTC policy, not a Life policy, there is no "face" value. Most LTC is a use it or lose it policy, so no real benifit by waiting to use it. All payouts are tax free to your dad, but you are being employed as a caregiver and will have to file $ as earned income. If your father needs assistance with activities of daily living (ADLs)and not "skilled" care then medicare will not pay anything. That is what the LTC policy is for. Call the insurance company and they can help with understanding the full benefits and options of the policy.
Location: chicago il
Time: 06:47 PM
You have to claim it on your income taxes at the end of the year as they do not take taxes out for you. it is considered income. you also should be advised that the amount they are paying you may be coming out of the face value of the policy long term care policy - you may max out of the policy faster when you are getting paid to be a caregiver to your father.
It may be cheaper to keep the policy in tact and find out if he can get the care from the Department of Aging - if he qualifies depending on his income/assets.
The care givers they send would get paid by Medicare instead of out of your pocket.
Please check all the avenues before you make a decision.