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Dad is on Medicaid. He gets a teachers pension for disability and a small social security check. No taxes are taken out of these automatic deposits. This year Dad owes over $3,000 in taxes. Every year I end up paying his taxes out of my pocket. I can't get Social Security, Medicaid or the IRS to help me with answers.


We live in Yellow Springs, OH, Greene County. There has to be resources to help seniors in long-term care. He is bedridden. I am frustrated as I don't make much of an income. $3,000 is a lot of money. We are a family who believes in paying our fair share of taxes. We always do what is right and by the law. Constructive information will be most welcomed.

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Spring18, sounds like Dad needs to start paying "quarterly estimated taxes".

Visit with a CPA or an income tax preparer who can decide how much Dad would need to pay 4 times a year, and they will print out the form that is needed to be used.

What you are experiencing is quite normal. I also have a pension where taxes aren't taken out, thus I have to do the quarterly estimated taxes.
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Can you update his accounts to have taxes with held? I have taxes taken out of my social security, union pension and my Navy retirement. Luz had nothing taken out of her social security. Since we filed jointly I paid all taxes for us.
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Just have withholding taken out of one of the sources of income. 3000 / 12 = 250 per month. Contact the pension source or SS and get the W4 form to have him sign to start the withholding. Easier than the quarterly estimated tax route as it's handled once and then the withholding is automatic. However, what happens when the monthly available income is cut by 250? Are you going to be besieged by constant requests for help with everyday expenses or will he start incurring debts? How is it that he gets to spend all his money without planning also to to take care of his own taxes? Maybe he's having financial problems now that you aren't aware of. How about a talk about adjusting his lifestyle so you don't have to pay his taxes? Or just just keep on doing what you're doing and plan for it in your own budget. But also see why this keeps happening...you may be surprised at what you find out. Advice here coming from retired IRS tax collector. By the way, if he's in long term care and if the money is paying for his medical care does he have deductions that lower his liability? Who is preparing the tax return? Are you sure the tax liability is being properly calculated? Figurihg out what the correct tax is....That's not my strong suit, especially under the Trump changes, but make sure what is owed is properly calculated.
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I’m confused. I thought when a person was on Medicaid and in a facility that all of their income went to the facility. He can’t have an extra $250 per month and be on Medicaid. What am I missing?
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worriedinCali Apr 2019
I think you are missing that he won’t have an extra $250 per month. The advice being given is to have $250 in taxes withheld from his check. That money doesn’t go to him, the pension plan pays it to the IRS for him.
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