My mom has alzheimers and has been living in a nursing home since February, 2012. She was a private pay client until her money ran out last July. Now she is on our state's version of Medicaid and she pays almost all of her monthly income to the nursing home and the state picks up the rest of the nursing home cost. She can keep $40 a month. Last year I filed income tax on her behalf. Does she have to file this year? Her yearly income is around $20,000 (hers and my late father's pensions) and virtually all of it goes to the nursing home. She does not collect Social Security. She is not eligible for SS because she is a retired teacher and our state does not allow teachers to collect Social Security. She can't get it through her late husband because he did not live long enough to become eligible for Social Security. So she has the 2 pensions which go to the nursing home.