Mom has Long Term Care Medicaid and is in a nursing home. All of her income is given to nursing home (minus $75 personal allowance). No taxes are taken out as this is what lawyers/Medicaid states needs to be done.
However, when doing State taxes, she owes money. Nothing for federal.
I don't understand how she can owe money when all income needs to go to nursing home (and more importantly, how she is expected to pay it).
Any information/guidance appreciated.