If you are in long term care and a medicaid patient, do you need to file?

dldomsic · ‎May 31, 2019

Mother is in a nursing home and is now medicaid but she also recieves money from 4 annuities. All her money goes to her care costs. Is she required to file taxes?

BobB7 · ‎May 31, 2019

If she is 65 or older, she is required to file if her income, not counting Social Security exceeds $11,850. If she files, she will not owe any taxes. If she doesn't she will get a letter from the IRS requiring either that she pay their estimate of taxes due or else file a return. During February-April, you could probably get it prepared for free at an AARP/TCE site (you could take her papers in to them if you have a power of attorney form). Maybe she won't get that letter until then.

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BobB7 · ‎May 31, 2019

If she is 65 or older, she is required to file if her income, not counting Social Security exceeds $11,850. If she files, she will not owe any taxes. If she doesn't she will get a letter from the IRS requiring either that she pay their estimate of taxes due or else file a return. During February-April, you could probably get it prepared for free at an AARP/TCE site (you could take her papers in to them if you have a power of attorney form). Maybe she won't get that letter until then.