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There should be a written contract and you need to get paid by check or direct deposit. This is so the elder doesn't appear to be gifting cash and thus cause problems if they need to qualify for Medicaid. In most states the Medicaid "look-back" period on the app is 5 years.

FYI if you work as a paid caregiver the IRS considers you an employee, no matter what. This makes your relative/client an employer, who then needs to do withholding, taxes, quarterly reporting, W2s etc. But a bookkeeper can be hired to do this.

If you work for cash you are not getting any money put into your own social security and you may not accumulate 40 work quarters so that you can qualify for Medicare.
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Reply to Geaton777
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Some states will pay a family caregiver through a program called In-Home Supportive Services (IHSS). The person needing care has to be on Medicaid and meet the requirements for the program. My understanding is that the pay is low and the hours are limited, but this might be something to look into.
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Reply to SnoopyLove
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The best way would be for the person being cared for to pay you from their saved assets.
If they have no assets and you are talking Medicaid coverage, this is up for you to explore and research. You can start with the search bar on this site "Getting paid as Caregiver" and look on the Medicare/Medicaid site for your own state to see programs available.

As we always warn people there is no salary high enough to pay a 24/7 caregiver, you won't get a living wage, and you well may end homeless and without a job history well into middle age. So think carefully about this, stick around on the Forum and read everyone's experiences with this.

Good luck.
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Reply to AlvaDeer
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