Mom is already on Medicaid and we will be doing her final tax returns. I understand the Federal refund process and the no penalty if the money is gone/spent within 12 months. Does Oregon have the same process?
It is not unusual for a caseworker to be incorrect on the issue of tax refunds. Ask for the written reference, a copy of the the state rules, law or manual that backs up what she said. Former eligibility worker ( not from OR) here and I have seen people often make this mistake.
I spoke to the caseworker who told me that even getting a federal tax refund would hit her with a penalty. I know this is not the case on federal if spent within the 12 month allotted period. She was adamant, so not comfortable with her answer on the state portion. I am trying to get an elder law attorney through my legal shield unless someone else may know about the Oregon refund and how it affects Medicaid?
Good advice. I’ll ask the case worker. We liquidated her 401 for her care last year and a majority of her expenses can be considered medical because of her diagnosis. This means she will get a few thousand back on her taxes.
If Mom has only her SS and a small pension, you may not need to file. There is a cap. With my Mom, she made 1500 in SS and 200 in pension. So the pension, counts as income, does not even equal the cap allowed. She did not pay taxes for a long time.
"For retirees 65 and older, here's when you can stop filing taxes: Single retirees who earn less than $14,250. Married retirees filing jointly, who earn less than $26,450 if one spouse is 65 or older or who earn less than $27,800 if both spouses are age 65 or older.Feb 27, 2023"
If you have to file taxes, any money she receives may have to be spent before her next renewal. That 12 months was for the COVID money that recipients received. Moms caseworker can answer you questions about the refund.
Ask her caseworker. If you can get the answer in writing.
if you are new to LTC Medicaid program, there will likely be an annual recertification and within it the State will ask for 3-4 months of banking. Like the month of the recertification/ renewal and 2-3 months prior. And for all of these, mom needs to clearly begin and end her month within the asset limit. Which for most is $2,000. So if her State does this, that tax refund cannot just linger in the account as it takes her over the 2K asset limit. So ineligible.
Remember each month they also get a smallish personal needs allowance and this too adds into their asset limit. Like for Texas $ 60 a month so if not spent at all, that’s $720. If tax refund is $ 1500, it’s $2,200 all in and she’s over the asset limit. PIA…. you so do not want this to happen. What you want to do is find out if it HAS TO BE SPENT DOWN within the month and then find something legit to buy for her. New eyeglasses, hearing aids, a way better more expensive walker or wheelchair. If she can SPREAD it out over months, that’s different type of spend, perhaps have her get dental work done as Medicaid rarely pays for dental. Ask her caseworker and base the spend on their answer.
if this is 7-10K, that’s more buying in full a funeral/ burial preneed. Most FH know the Medicaid rules on these. Again the caseworker should have details as to the requirements for preneed.
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I spoke to the caseworker who told me that even getting a federal tax refund would hit her with a penalty. I know this is not the case on federal if spent within the 12 month allotted period. She was adamant, so not comfortable with her answer on the state portion. I am trying to get an elder law attorney through my legal shield unless someone else may know about the Oregon refund and how it affects Medicaid?
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"For retirees 65 and older, here's when you can stop filing taxes: Single retirees who earn less than $14,250. Married retirees filing jointly, who earn less than $26,450 if one spouse is 65 or older or who earn less than $27,800 if both spouses are age 65 or older.Feb 27, 2023"
If you have to file taxes, any money she receives may have to be spent before her next renewal. That 12 months was for the COVID money that recipients received. Moms caseworker can answer you questions about the refund.
if you are new to LTC Medicaid program, there will likely be an annual recertification and within it the State will ask for 3-4 months of banking. Like the month of the recertification/ renewal and 2-3 months prior. And for all of these, mom needs to clearly begin and end her month within the asset limit. Which for most is $2,000. So if her State does this, that tax refund cannot just linger in the account as it takes her over the 2K asset limit. So ineligible.
Remember each month they also get a smallish personal needs allowance and this too adds into their asset limit. Like for Texas $ 60 a month so if not spent at all, that’s $720. If tax refund is $ 1500, it’s $2,200 all in and she’s over the asset limit. PIA…. you so do not want this to happen. What you want to do is find out if it HAS TO BE SPENT DOWN within the month and then find something legit to buy for her. New eyeglasses, hearing aids, a way better more expensive walker or wheelchair. If she can SPREAD it out over months, that’s different type of spend, perhaps have her get dental work done as Medicaid rarely pays for dental. Ask her caseworker and base the spend on their answer.
if this is 7-10K, that’s more buying in full a funeral/ burial preneed. Most FH know the Medicaid rules on these. Again the caseworker should have details as to the requirements for preneed.