mother in nursing home

[oceanlovin'ea]

Clients parents lived with her family for several years. Father died several years ago. In 2010 mother had to be placed in nursing home. Although she had claimed her mother for years, she did not claim her for 2010 or 2011. Mother died in July 2012. She came in today and asked if it were possible to claim her mother. She had just assumed she couldn't so didn't bring it up.

Mother's only income was social security check which nursing home now gets. But client buys all the other things for her mother such as clothes, toiletries, etc.

I am inclined to say that the nursing home provides more of the mothers support than the client. So client could not claim her mother. But stranger things have happened so I just thought I would put the question out here and see what you think.

Linda, EA

[BP.]

I am inclined to say that the nursing home provides more of the mothers support than the client . . . thought I would put the question out here and see what you think.

Well, there's no inclining for you or thinking for us, only determining this: Did the taxpayer provide over half her mom's support?

[appelman]

You don't say who's paying for the nursing home.

Assuming the daughter isn't the one who is paying, she'd have to rack up an awful lot of expenses to make up more than half her mother's support.

[oceanlovin'ea]

Mother's little social security check goes to nursing home. I guess if the nursing home gets more money it is from Medicaid or Medicare, whichever it is.


We can't claim the mother anymore, I know. But when you look at the technical issues, social security is not considered part of income when figuring support. So the only support is from my client. But I know that is not how it is looked at or figured.

Linda, EA

[BP.]

social security is not considered part of income when figuring support.

Maybe you are mixing up the gross income and support tests??

the only support is from my client.

Besides SS & client's assistance, these are truly the only sources of support??

Suggest Pub 17, p. 30, Worksheet 3-1 (esp. note language on lines 1 & 23.) And p. 33- some relevant language and examples.

[WhiteOleander]

Social Security is not used for the gross income test. It is used to figure support. Two different things.

[Kram BergGold]

The question is

How much was the nursing home getting to house the Mom from SS and any other sources. This becomes the amount that the daughter needs to top to claim the Mom.

[oceanlovin'ea]

yes, I know. Medicare or Medicaid pays the nursing home I am sure. Isn't that what happens with most older people in nursing homes? They sign over their social security checks to go to the nursing home and the government pays the rest.

Out of pocket is for things other than room and board that aren't provided.

Yes, I got mixed up. Not surprising with everything my brain is trying to keep up with right now.


Thanks

Linda, EA

[Kram BergGold]

Medicaid

It would be Medicaid that pays the nursing home but let's think about this. If the Mom owned a home, then upon her death, Medicaid would go after reimbursement from the home sale. In this case the Medicaid payments would be like a loan, so maybe there is an argument that Mom is a dependent. If Mom has no assets then I think the Medicaid payments would be support provided by a third party and dependency is unlikley.

[New York Enrolled Agent]

In this case the Medicaid payments would be like a loan, so maybe there is an argument that Mom is a dependent.

Do you have any authority for that position? Turn it around - suppose the clients borrowed money and took a loan to pay for mom's medical bills, clothing, etc. Are you suggesting the clients would not be deemed to be contributing support for mom because the loan had not been paid?

Payment of a loan does not control the year of deduction for medical expenses. See Granan 55 TC 573

[FEDUKE404]

A cite ??

Do you have any authority for that position?

[Hiding under desk] Uh oh !! [/Hiding under desk]