The support subsidy for informal caregivers is designed to assist those caring for dependents, but Social Security has started to consider it as income, “which may reduce social support and increase tax burdens,” according to DECO PROTeste, which emphasizes that taxpayers in this situation should file complaints.
The consumer advocacy organization highlights that the “Informal Caregiver Statute provides for a support subsidy for the main informal caregiver through a monthly cash benefit, ensuring minimum conditions and support for those dedicating significant time to caring for loved ones.”
This legal framework views the subsidy as a non-contributory social benefit, ignoring it for subsidy calculation and excluding it from IRS taxation.
Recent practices by Social Security and the tax administration, however, have begun counting it as family income for financial resource assessments and as taxable income.
Social Security is including social benefits for disability and dependency in income expenses without any changes having been made.
Lusa | 09:07 – 01/09/2025
DECO PROTeste explains that “this interpretation can raise the IRS bracket for families with informal caregivers and jeopardize social support like the caregiver subsidy or home care assistance.”
“Most supports depend on total income for benefits allocation, which means caregivers might lose essential social supports or see them reduced if their incomes exceed legal thresholds. However, informal caregivers should not be penalized for receiving subsidies,” the consumer defense group states.
DECO PROTeste urges “taxpayers to file complaints”
DECO PROTeste believes “taxpayers affected by this recent interpretation can file a complaint with Social Security to restore their rights,” suggesting that the “e-Clic Desk is the most appropriate channel for doing so.”
The organization provides a template that can be adapted to individual cases, available here.
“If the issue also arose in the 2024 IRS declaration, a formal complaint to the tax authority should be filed, using the template DECO PROTeste provides” (here), as stated on the organization’s website.
The consumer defense body stresses that “caregivers still need greater protection and improvements in the framework and supports.”
“Although the right to rest, for example, is enshrined in the law, mechanisms to fully ensure it have not been established. Access to home care services and in-patient care continues to show weaknesses,” the DECO PROTeste portal reports.
Effectively, Social Security is cutting assistance for those with disabilities and dependents, as the system now counts the social benefit as income, causing many to lose eligibility due to surpassed limits.
Notícias ao Minuto | 09:50 – 02/09/2025
