How do I reflect my mother's Medicaid coverage and nuring home costs on her tax form and is she eligible for the rebate?

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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.

Expert Answer

Barbara Steinberg is the CEO and founder of BLS Eldercare Financial Solutions, which specializes in helping families pay for long-term care for their loved ones. A registered financial gerontologist, she speaks regularly on the topic of paying for long-term care and is a financial expert for

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