Stimulus Package/Social Security Pension Question

[AtlantaBlue]

I have a question about the Stimulus Package. My grandmother (92) moved to a nursing facility in Michigan in December 2007. She receives social security income, and since moving to the nursing facility, they take all of her pension except for $60.00 monthly. My question is simple: If she files for the stimulus package (which is a credit, and not considered income) is the nursing facility entitled to take that money from her? Thanks very much for your help in advance.

AtlantaBlue
---------------------------------------------------------------------------
"Wer zu spaet kommt, den bestraft das Leben."
Translation: “Dangers await only those who do not react to life.”
-- Mikhail Gorbachev, East Berlin, 7 October 1989

[Koss]

Nursing Home

Technically, your question is not a question about federal tax law, but rather a question about your state's Medicaid regulations. So at least in theory, the answer may vary from state to state.

With that being said...

The stimulus payment will be delivered to the taxpayer in the form of a federal income tax refund. Direct deposit is one available option. For those who do not choose direct deposit, the payment will come in form of a check issued by the Internal Revenue Service. The payment will not originate from the system that issues payment of social security benefits.

A state law or regulation that entitles the nursing home to part or all of her social security benefits does not automatically entitle them to her federal income tax refund.

There may be some other set of regulations which entitles them to get part or all of it. As I said earlier, it may vary from state to state. You should consult an attorney or simply ask the nursing home administrator. If the answer from the administrator contains any hesitation, or if their answer is qualified with the words if, or may be, or depending, then that means they really don't know.

[susieq]

Stimulus Rebate For Nursing Home Resident

I just had the same situation - I am in Michigan. Spoke to a Medicade specialist in the Detroit area and she said that it would not be attached. Besides, the resident is entitled to have $2,000 in assets and still qualify for Medicaid. If she does not exceed the $2,000. she should be fine.