My Mom is now in a nursing home and her SS and pension go to her care, and Medicaid pays the balance. When we applied for Medicaid they told us to stop having Federal tax taken out of her pension. So when I just did her taxes, now it came out that she has to pay tax! This doesn't seem right for someone with zero assets on Medicaid. Is there a different way I should be filing this? Thanks
@Carlacb, I've used the short firm 1040A since we sold her house 8 years ago, so she may have to itemize deductions again to claim the NH as medical expenses. Hadn’t thought of that. I definitely will have our CPA advise us on Moms taxes this year. It didn’t seem right that she should owe over $1000 this year, with nothing to pay it with. Thanks.