I don't know where to start. My mom is 86, $30,000 in debt, living in managed care and completely maxed out. She has dementia in this home and they want to raise her care cost but there is no more money.
On top of these increasing expenses, she hasn't paid taxes in at least five years. At 86, with dementia, what am I to do? I am unemployed, struggling myself since COVID.
It took everything I could do to get my mom in this home she's in. Do I blow off taxes? What can they do? She has nothing.
1. Ignore her unsecured debts like credit cards. Don't pay them yourself. There's little the creditors can do except harass her.
2. I think you mean Medicare Supplemental insurance, not MedicAid. She shouldn't need additional insurance if you get her in the right facility and the right type of MedicAid.
3. It's not clear to me what type of "home" she is in. If this is some type of Adult Family Home for someone who needs care similar to a nursing home I would think that Long term type MedicAid would cover this, depending on your state and if the home accepts MedicAid. If the cost of care exceeds her income this would likely make her eligible for this type of coverage. If this is some type of Assisted Living, probably not...most states MedicAid don't cover this type of living arrangement. Make sure you are contacting the correct office for information about MedicAid. The regular health insurance MedicAid workers may know nothing about long term care coverage...different department. If you need help getting to the right place to apply for that coverage for her contact your local Area Agency on Aging for help in figuring this out.
4. Federal income taxes....IRS can't collect money if there is no tax assessed. Taxes get assessed when you file a tax return, or, the agency determines that tax is due based on information it has. Then they send out letters proposing to assess the tax, let you dispute it or agree. Then it gets assessed and can be collected. IRS can attach part of a Social Security benefit, or a pension...but they don't have to if it causes a hardship. The debt can be determined to be uncollectible. Because the IRS is now so vastly understaffed and underfunded the odds are pretty small that you need to worry about her taxes at this time. There are bigger fish to fry for the agency at this time. They may never follow up on her..too small an issue to pursue as it might not make financial sense to spend the resources to try and collect such a small amount.
5. Take a deep breath and start by making sure you are reaching the right department about MedicAid...that is your first step. If you get that fixed, step two is to find out if she can stay where she is or has to move. After that is settled, then you can decide if you want to contact the creditors to get them to cease contact on her uncollectible debt. I would let the IRS contact her, if they ever get caught up, and deal with that last.
A senior doesn't have to file personal taxes if they are below a certain income level (you can find this info online when you search).
What is her debt from? Is it credit card debt? Mortgage? Loans? Need more info so you can get better guidance.
From JCPenny's to Macy's her CC bill's were now at 30% and climbing, I tried to pay down but it became overwhelming. I finally just stopped communicating and focused on finding a home for my mom which could provide her care. I reached out to the county and they found a place that was willing to take her in.
She receives $1600.00 in SS and $1600.00 in survivor benefits to total a fixed income of $3200.00 month. the facility took my mom in for $2800.00, but recently they raised this to $3500.00. My moms costs for insurance are $400.00 month and then comes the copays for meds. These are not exact numbers but it's not hard math to realise at 86 it's not getting any better.
In the last 2 years I have focused on making sure my mom's home was paid on time, I set up autopay for her Medicaid supplemental and her prescription supplemental. I've spoken to the county and asked if she could be enrolled in any programs for public assistance and they say she receives too much money. Then came the personal income taxes question, "what do I do"? I know before she became ill she was paying taxes, albeit not a lot each year.
People have told me everything from walk away and let the county figure it out (not an option, I love my mom), to only focus on her quality of life costs, which is where I stand today.
I am worried that the government might stop her SS payments, or somehow garnish her survivor benefits and then I just don't know what else.
I'm just at a loss, my mom is in that middle world of barely enough to live on, but too much for the county to come in and help her finish her life in a care facility which does genuinely provide loving care.
Thank you for your response to my questions.
You are not responsible for your Moms debts unless u signed something to the contrary. Why was Mom allowed to get this far in debt? What facility was or is she in. An Assisted living, Memory care or Nursing home setting? Why was Medicaid not applied for?
Taxes, if talking IRS and State Income taxes that depends on Moms monthly income. If most her income is from Social Security and she is under the cap, she may not have been required to pay income taxes. My Mom made 20k a year. 18,000 of that was SS the rest was a small pension. IRS said she no longer needed to file taxes.
Property taxes...if not paid a lien will be placed on the house. After a point, the house may be auctioned off to pay for the taxes.
If Mom has no money, then her taxes cannot be paid.
It is not your responsibility to pay her debts.
She needs to be on Medicaid. Talk to the county social workers about getting her qualified.
If she is in debt, has no assets and no income beside the pension, she should be made bankrupt by all her creditors, including cards and taxes.
FYI Medicaid is a federal program that is administered by each state independently. Therefore, any guidance you get should come directly from your mother's home state/her county of residence website. Being approved for Medicaid requires 2 criteria: fiancial need and medical need (because in most states it only pays for LTC BUT a rare few states pay for part or all of AL and MC). Many states' Medicaid app has a 5-year "look back" period. It will want her last 3 months (from the date of filling out the application) of medical bills that are unpaid.
You should also know that Medicaid usually only pays for a shared room, so she'll always have a roommate.
Your raise from the nursing home is to be discussed with them. If Mom's entire SS and her entire Medicaid is going to the nursing home there is no more money. Discuss with the facility.
It is unlikely with no income your Mom has owed taxes. If you don't owe taxes you don't have to file taxes.
Are you POA? Are you keeping meticulous files of every penny in and every penny out for Mom.
I will suggest your best bet is an hour of time with a certified Elder Law Attorney who can answer your questions for you. Take all knowledge you have to that person, and all paperwork for Mom's income and output these last years of not paying taxes.
Best of luck.
Go on the IRS.government website and see how much income she would need to receive to be required to file taxes. This may be a moot point for you.
Please be advices, the IRS can and will lien her SS payments if she owes taxes. They are the only entity that CAN touch SS payments. They take the money before the payment is sent.
If you can't figure this out, please call the IRS and ask for help. I have found them to be very helpful when I can't quite understand the written instructions. :-)