California’s In-Home Support Services (IHSS) pays caregivers for caring for low income elderly patients, allowing the elderly to stay in their private homes and out of nursing homes. Now, caregivers that live in the homes of their patients will not be taxed on their incomes. The IRS applies this rule to all state Medicaid Home and Community-Based Services waiver programs, including California’s IHSS. However, the caregivers often have incomes that are so low, that they need their incomes to be taxable in order to claim the income tax credit. The rule is the same for paid caregiving relatives that live in the home.
For the full article, please visit the San Francisco Chronicle website: http://www.sfchronicle.com/business/networth/article/Little-known-tax-break-for-in-home-caregivers-6126375.php
California has introduced a program to help older residents that have fallen behind on property tax or insurance payments. The $2 billion federal program will be enacted through the Keep Your Home California program, and will provide up to $25,000 of assistance to those who demonstrate need. This pilot program will assist residents age 62 and older stay in their homes and recover from financial hardships such as a decrease in income or expensive medical bills.
To read the full LA Times article, click here: http://www.latimes.com/business/la-fi-re-seniors-reverse-mortgages-20150217-story.html
Follow this link to the Keep Your Home California website: http://www.keepyourhomecalifornia.org/reverse-mortgage-assistance-program/
The cost of health care will continue to be a major issue in the current California legislative session according to State Assemblymember David Hadley (R-South Bay). According to Hadley, seniors were the first to feel the brunt of rising costs.
“California is among the highest-cost states in the country – high housing costs, high sales taxes, gas taxes, taxes on insurance premiums, cap-and-trade taxes. Part of what we need to do to make California more cost-effective for seniors are policies that will benefit all Californians” – Asm. David Hadley, Assembly District 66
Hadley argues that part of the solution is to find new opportunities where seniors can cut costs. One possibility is to broaden their ability to complete 1031 tax-free real estate exchanges. This enables someone to move into new housing and still benefit from Proposition 13, which helps keep property taxes low for long-time homeowners.
According to the California Healthcare Foundation, California health insurance premiums have increased by 9.8 percent since 2011 — a reality that is catching many seniors on a fixed income by surprise.