Massachusetts Personal Care Attendants (PCAs) who live with their clients are set to benefit from a significant change in tax policies. Governor Maura Healey announced that PCAs will no longer be required to pay state or federal income tax, potentially saving each of the 18,000 caregivers around $5,000 annually. This move is part of a broader program aimed at supporting live-in care providers who are paid through Medicaid, with the state seeking confirmation from the US Internal Revenue Service. The Massachusetts PCA program, funded by MassHealth, allows attendants to claim the exemption when filing their 2025 taxes, adjusting withholdings to stop paying the tax moving forward. This initiative is designed to make life more affordable for a low-wage workforce providing vital services to state residents. The pay for PCAs, ranging from $19.50 to $22.40 per hour, is acknowledged as challenging, especially for those caring for family members or others in their homes. This tax exemption, estimated to save caregivers a few hundred dollars monthly, can help with transportation costs to visit family. However, the story also highlights the financial struggles of many PCAs, many of whom rely on SNAP and subsidized health care insurance. With food assistance facing cuts and healthcare costs rising, the tax exemption is seen as a step in the right direction, though it doesn't solve all financial problems. The initiative is part of the Money, Power, Inequality team's coverage of the racial wealth gap in Greater Boston. Katie Johnston, a reporter, can be reached at katie.johnston@globe.com. This change could spark debate on the effectiveness of such policies in supporting low-wage workers and the broader implications for healthcare and social assistance programs.
