My mother is 85 and lives in an assisted living community. It costs $5,500 a month. She has a pension of about $40,000 a year and a slowly dwindling IRA (about $5,000 left) so I pay the shortfall. She has no savings left. It all went to her care. I pay her Medicare bill and the bills for her house which I hope to fix up and rent.
Since taking over her care I’ve filed her taxes every year but this year I just don’t want to. It seems unfair that she always ends up getting about $685 in a federal return which I then end up paying to the state. Funny how it always works out like that. So I’m wondering what will happen if I just don’t bother? The woman is 85 and basically has nothing. She worked her entire life, always paid her taxes and now at the end she STILL has to file? I know the rules around this and how it came to be (thanks Ronald Reagan), but I’m wondering what’s the worst that could happen if I just don’t bother.
Makes me happy to be on the right side of the border - thanks for the reminder
You have to meet certain financial criteria but it's worth checking out. A councilor at A Place For Mom told me about it.
https://www.veteranaid.org/
If you don’t file her taxes that’s called tax Evasion so you don’t want to go there...and why would you let the government keep her money owed to her. She deserves to have that back. So what if part goes to the state? I wonder if you are missing some deductions..so you might want a professional take a look at them.
You may find that she can keep her home and qualify for Medicaid. Hopefully, that would make up the shortfall that you are now covering for her. Medicaid and taxes are different in different states, and you really can't rely on information you get from people like us online.
Medicaid is probably not in her future.
I'm very curious about the 45% deduction for memory care...
My Moms income was about 20k. 17k of that was SS. The rest was a sm pension. IRS sent her a letter saying she no longer need to file taxes.
I would check the requirements for Medicaid for your state, 40k annual pension most likely stops her from getting Medicaid. Check what you can do to get her qualified. My dad only gets 27k and he makes to much for assistance. We could have spent thousands for a Miller Trust but he didn't have any extra to cover the attorneys fees.
I think keeping the house to create income is a great idea, maybe you will get enough ROI to cover her monthly expenses.
Good job, keep it up! Your mom is very blessed to have you advocating for her.
The house is always a thing. She has attachment. You have one too. That's understandable. But don't let it preclude your judgement and make you a prisoner of the memory, ok?
My mom was an educator too. Got doctorate and went on to be an educator at the college level. Widow since 48. 93 now. She, over course of her life, owned 10 houses, in 3 different states. Don't get me started on that.
We want the best for YOU.
It’s funny you mention the lack of racial diversity. That’s the case now. My mom is the only Black person in the place. I’ve been told this is common at private pay facilities due to the high cost. It hasn’t been an issue since the staff is highly diverse but I’ve heard stories of issues.
Anyway, besides the poor care of the Medicaid places, I’ll admit to being reluctant about getting rid of the house which I assume I’d have to do to make her Medicaid eligible. It’s my childhood home. Plus I know how hard she worked to buy that house. It was quite a feat for a single mom on a teacher’s salary.
If you've got soon to be college age kids, you need to be thinking about your own retirement too.
And it comes at you faster than you can imagine. Yes you are sandwich gen.
Our mom is in a MC facility 30 miles from where we live in a metro area. Our elder law guardianship attorney told us about it. And we could not have made a better decision than to place her there. She will be private pay until she exhausts those resources and then go on Medicaid there.
It is actually one of two certified MC facilities in the state. Not part of CCRC.
I Am not real sure how to put this. It is not racially diverse at all. It is not a huge behemoth of a place. 6 neighborhoods of 12 neighbors. Each room is private as is bath.
Our mom is in a neighborhood of higher functioning peeps.
She was in a geriatric behavioral hospital in same town before she was placed there. Because we needed advanced testing beyond an hour. We got it, too. Our attorneys were fabulous in letting us know about both facilities.
Unfortunately I’m not wealthy but I have a good job and an apartment building so it all works for now. I’m four years from the first child heading to college and six years until the other. That will definitely complicate things. I’m a perfect example of the sandwich generation.
Kidding Op. Most of ours are beasts.
Is there some reason you don't want to apply for Medicaid?
I Take it you are very wealthy to be able to shoulder this expense.
No snark meant in that. I don't understand why you are paying the shortfall if her finances are dwindling.
Why don't you sell the house?