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Scotia9 Asked April 2012

My mother is in a nursing home and her income(social security/pension) is given to the state as part of her Medicaid benefits. Are he tax obligations over since her income goes to the government?

Two years in, she gets a notice from the IRS that she owes back taxes and now the state has jumped in as well. I thought her tax obligations were over since she handed over her income to the state. What gives?
Thanks

anonymous95109 Jun 2012
Why don't you check with the social worker at her nursing home. This obviously comes up now and then. If all of her income went to the nursing home, it could be that some tax notification would have been helpful to alert the IRS of the situation. I don't know the answer. Maybe someone else does. Best wishes.

2011lighthouse Jun 2012
my mother is in a nursing home income around 30,thousand they get all her money and she is now on medicade does she have to file taxes

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Scotia9 Apr 2012
Thank you all so very much! I deeply appreciate the support. It has been anxiety provoking for sure, but your informative and caring replies have helped!
Thanks!

anonymous95109 Apr 2012
Your mom qualified for Medicaid. That is possible due to a lack of income and, as you said, she has no assets. So this is a case of trying to get blood out of a stone. Isn't going to happen. Does the information you have received from the fed and state make any sense to you? As Jeanniegibbs said, maybe it is a misunderstanding. I didn't check your profile to understand your mom's age. Maybe it would be wise to call the IRS, but they may not discuss the issue with you since you are not POA. Still, you could let them know that your mom is in a nursing home. They might be willing to discuss it with you and get the ball rolling to stop the nasty mail. Good luck, Cattails.

Scotia9 Apr 2012
Thank you so much for your answers. I do not have POA. Should I just send a letter to the Feds and the state? They don't seem to be aware of her being on Medicaid . They have both included the usual threats of liens etc. ( no property, but I certainly don't want them taking money out of her ss or pension.

jeannegibbs Apr 2012
The first answer is, Not Your Problem. My guess is that the back taxes are from before she was in the nursing home -- the IRS doesn't typically work so fast that she'd hear about taxes owed from last year. Maybe there is an IRS mixup, maybe there was an oversight by your parents, maybe she should have paid taxes before she turned over her assets, maybe, maybe, maybe. Are you her POA? If so, you can help resolve this by hunting up paperwork, etc. But as far as paying the taxes goes, Not Your Problem.

Good luck!

195Austin Apr 2012
You are not responsible for her debt-all her assests are going to the nursing home-let the social workers deal wirh this -it is their job-they can not get money she does not have -a friend was approched by a nursing home for a large amount of money after her mother died-she was on medicaide-and the NH wanted to be paid even though they had got all her mother's money which is illegal-but a nice try on their part.

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