Mom was told by the nursing home (business office) to stop the tax withholding on Dad's pensions because he's now institutionalized. Of course there was no reason given. I don't see anything in tax law as to why that step should be taken. Before we do anything, I want to find out what implications there are to withholding taxes on pensions.
Having taxes withheld, and how much, depends on a number of factors.
Find out why the nursing home recommended that.
Then take that info to your accountant or tax person to find out if it is kosher or not.
It would be really rotten if you went ahead and stopped that withholding,
then learned it had to get repaid to the IRS out of your parents estate, or something.
Some people use the term "pension" interchangeably with other retirement funds, which can cause confusion and mistakes.
Ask a Tax Accountant.
You will need to provide details about the funds in question, as well as the circumstances, for a really informed answer to be given.
States often also have a Justice Project, which can provide legal help on a sliding scale, free for those with least income.
I'd ask the BO but they seem to believe they don't need to explain anything, their orders simply must be obeyed, period. Their ongoing high-handed manner is the reason I'm seeking answers elsewhere. They've mistaken my mother's mild mannerism for an easy pushover. Not too long now before they realize their mistake. : )
I think the most important thing here is to understand why the facility is asking that you eliminate the withholding. Maybe your father's income is no longer taxable because of his age and the fact that it goes to his care in a facility.
You can guess until the cows come home, but, in my humble opinion, it's best to understand the facilities point of view and then confirm it with an accountant.
Cattails