Question
My mother is in a nursing home. She pays all but $50 a month for her care, and Medicaid pays the balance. How do I reflect this on an income tax form? Is she eligible for the $300 rebate? Thanks for your help.
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Answer
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Expert Barbara Steinberg is a certified financial planner, a certified estate advisor, and founder of BSA Advisors, a financial planning firm for senior citizens.
You don't need to report Medicaid as income on your mother?s tax return. You can file a return and report her Social Security income (and pension, if any). She probably doesn't owe any tax and isn't required to file a return. However, the only way to get the income tax rebate was to file a return for 2007. Many seniors, who were not otherwise required to file, did file in order to qualify for the rebate. There's still time to file a return simply to qualify for the rebate -- she has until October 15, 2008
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