Mother is in a nursing home and on Medicaid. Medicaid requires that the total gross amount of her income except for $125 personal needs allowance be paid to nursing home.
Medicaid advised she had to stop having federal taxes taken out of his social security and pension to meet the spend down obligation. Since only 92.5% of what she pays can be deducted using schedule A, when she files, she will owe taxes on the amount that can't be deducted which is about $5000
She will not have enough assets to pay the tax obligation. What should she do?
