Caring for a veteran with disabilities is a noble but challenging role. The U.S. Department of Veterans Affairs (VA) offers a host of benefits designed to support you — from tax-free stipends and health coverage to property tax relief. This guide breaks down critical benefits, eligibility, and strategies to help veteran caregivers access the support they deserve.
1. Veteran Caregiver Benefits: What’s Available
VA Caregiver Stipend (PCAFC)
As part of the Program of Comprehensive Assistance for Family Caregivers (PCAFC), eligible caregivers may receive:
- A tax-free monthly stipend, calculated based on local home health aide wage rates — either 62.5% (Tier 1) or 100% (Tier 2) depending on care intensity. (tcare.ai)
- Additional supports include health insurance, mental health counseling, caregiver training, respite care, and access to a Caregiver Support Coordinator. (tcare.ai)
Health Coverage via CHAMPVA
If you’re the spouse, dependent, or survivor of a veteran who meets disability criteria, you might qualify for CHAMPVA, a civilian medical care program administered by the VA. (Veterans Affairs)
Caregiver Resources & Respite Care
The VA provides access to free training, education, and a support coordinator. Respite care helps give caregivers temporary relief from their duties. (tcare.ai)
2. Tax-Exempt Income & Grants for Veteran Caregivers
- VA caregiver stipends are not taxable — you do not need to report them as income. (Givers)
- Other tax-exempt veteran-related income includes:
- VA disability compensation and needs-based pensions
- GI Bill tuition/housing grants
- Grants for home adaptations (SAH/auto)
- Skill-related and non-service-connected grants (VA News, VA Claims Insider)
3. State-Level Tax Breaks and Property Exemptions (e.g., Minnesota)
Certain states offer generous tax exemptions for veterans, survivors, and caregivers. For example, in Minnesota:
- Homestead market-value exclusion:
- $300,000 for caregivers of veterans with 100% permanent disability
- $150,000 for veterans or caregivers with 70%+ disability rating (myarmybenefits.us.army.mil, revenue.state.mn.us)
- Other Exemptions:
- MN also offers exclusions for military disability retirement, DIC, and SBP annuities (myarmybenefits.us.army.mil)
Many states have similar provisions—especially for military-related property tax relief.
4. Federal Caregiver Tax Credits & Deductions
Beyond VA-specific benefits, caregivers may claim valuable IRS tax credits and deductions:
Child and Dependent Care Credit
If you pay for caregiving expenses while working or job hunting — you may qualify. Benefits include:
- Up to $3,000 credit for one dependent
- Up to $6,000 credit for two or more dependents (as of 2024) (revenue.state.mn.us, A Place for Mom)
Credit for Other Dependents
If you support an elderly or disabled dependent, you may be eligible for a:
- $500 tax credit per dependent (A Place for Mom)
Medical Expense Deductions
You can deduct unreimbursed medical expenses that exceed 7.5% of your AGI, including those for your veteran loved one. (A Place for Mom)
5. How to Maximise These Benefits
| Area | Action Steps |
| VA Caregiver Stipend & Resources | Apply for PCAFC; ensure level of care reflects current needs; stay in communication with VA. |
| Tax-Free Income | Keep documentation for all VA stipends and benefits to confirm tax-exempt status. |
| State Property Exemptions | Check with your state’s VA or tax assessor; file for homestead exclusions if eligible. |
| IRS Tax Credits/Deductions | Claim dependent care or other dependent credits; aggregate medical expenses if itemizing. |
6. FAQ Section
Q1: Are VA caregiver stipends taxable?
No—they are considered non-taxable benefits. (Givers, VA Claims Insider)
Q2: What’s included in CHAMPVA coverage?
CHAMPVA helps spouses and dependents of disabled veterans with healthcare costs. (Veterans Affairs)
Q3: How do property tax exemptions work for caregivers?
Some states like Minnesota offer substantial homestead value exclusions—up to $300,000—for approved veteran caregivers. (revenue.state.mn.us)
Q4: Can I claim caregiving tax credits?
Yes—credits like the Child & Dependent Care Credit and the Credit for Other Dependents may apply if you meet IRS requirements. (A Place for Mom)
Q5: Are VA disability and GI Bill benefits taxable?
No—disability compensation, pensions, GA Bill, caregiver stipends, and related grants are all tax-free. (VA Claims Insider)
As a veteran caregiver, you’ve taken on an extraordinary role—and you deserve support in return. From tax-free stipends and health benefits to state-level property breaks and caregiver-specific tax credits, a range of programs exist to ease the load. Stay proactive—keep updated on eligibility, documentation, and changes—and ensure you’re fully leveraging every benefit available.