Mom has no money and is maxed out with care costs in a home. What am I to do?

My CPA told me that my dad, at 74, with no income except SS and a small payment with interest paid to him, did NOT need to file taxes.

Go on the IRS.government website and see how much income she would need to receive to be required to file taxes. This may be a moot point for you.

Please be advices, the IRS can and will lien her SS payments if she owes taxes. They are the only entity that CAN touch SS payments. They take the money before the payment is sent.

If you can't figure this out, please call the IRS and ask for help. I have found them to be very helpful when I can't quite understand the written instructions. :-)

Regarding her cc debt: yes you can ignore it as long as you are not joint on any of those accounts and have not paid any of the debt from your own account. We had a very similar situation with my MIL and SFIL, I just took the collection letters and wrote: "Not at this address, return to sender" and kept doing that. If they are calling your mother where she is living, you may need to get a doctor's letter confirming her diagnosis of dementia/memory impairment/incapacity to send to the collectors. Or change her phone number and make sure it is unlisted. Collection agencies purchase the debt for pennies on the dollar so the original creditors have recouped some of their money at that point. No need to file bankruptcy -- there are no assets to protect, nothing that any agency can collect.

FYI Medicaid is a federal program that is administered by each state independently. Therefore, any guidance you get should come directly from your mother's home state/her county of residence website. Being approved for Medicaid requires 2 criteria: fiancial need and medical need (because in most states it only pays for LTC BUT a rare few states pay for part or all of AL and MC). Many states' Medicaid app has a 5-year "look back" period. It will want her last 3 months (from the date of filling out the application) of medical bills that are unpaid.

You should also know that Medicaid usually only pays for a shared room, so she'll always have a roommate.

I have some advice here in several areas.
1. Ignore her unsecured debts like credit cards. Don't pay them yourself. There's little the creditors can do except harass her.
2. I think you mean Medicare Supplemental insurance, not MedicAid. She shouldn't need additional insurance if you get her in the right facility and the right type of MedicAid.
3. It's not clear to me what type of "home" she is in. If this is some type of Adult Family Home for someone who needs care similar to a nursing home I would think that Long term type MedicAid would cover this, depending on your state and if the home accepts MedicAid. If the cost of care exceeds her income this would likely make her eligible for this type of coverage. If this is some type of Assisted Living, probably not...most states MedicAid don't cover this type of living arrangement. Make sure you are contacting the correct office for information about MedicAid. The regular health insurance MedicAid workers may know nothing about long term care coverage...different department. If you need help getting to the right place to apply for that coverage for her contact your local Area Agency on Aging for help in figuring this out.
4. Federal income taxes....IRS can't collect money if there is no tax assessed. Taxes get assessed when you file a tax return, or, the agency determines that tax is due based on information it has. Then they send out letters proposing to assess the tax, let you dispute it or agree. Then it gets assessed and can be collected. IRS can attach part of a Social Security benefit, or a pension...but they don't have to if it causes a hardship. The debt can be determined to be uncollectible. Because the IRS is now so vastly understaffed and underfunded the odds are pretty small that you need to worry about her taxes at this time. There are bigger fish to fry for the agency at this time. They may never follow up on her..too small an issue to pursue as it might not make financial sense to spend the resources to try and collect such a small amount.
5. Take a deep breath and start by making sure you are reaching the right department about MedicAid...that is your first step. If you get that fixed, step two is to find out if she can stay where she is or has to move. After that is settled, then you can decide if you want to contact the creditors to get them to cease contact on her uncollectible debt. I would let the IRS contact her, if they ever get caught up, and deal with that last.

You say you are worried that government will stop her SS because of tax debt and debt-debt. They will not. Social Security is not touched. Her SS now goes to her nursing home along with her medicaid. Hopefully you have never paid on any of the credit card debt with your own name as that can be labeled "assuming the debt" meaning it is YOUR debt now. Stop paying on any credit. There is no asset for them to put a lien on. There is no money to collect and they cannot attach her Social Security or Medicaid.
Your raise from the nursing home is to be discussed with them. If Mom's entire SS and her entire Medicaid is going to the nursing home there is no more money. Discuss with the facility.
It is unlikely with no income your Mom has owed taxes. If you don't owe taxes you don't have to file taxes.
Are you POA? Are you keeping meticulous files of every penny in and every penny out for Mom.
I will suggest your best bet is an hour of time with a certified Elder Law Attorney who can answer your questions for you. Take all knowledge you have to that person, and all paperwork for Mom's income and output these last years of not paying taxes.
Best of luck.

Having the county step in doesn't mean you don't love your mom!

It is not your responsibility to pay her debts.

She needs to be on Medicaid. Talk to the county social workers about getting her qualified.

Yes, need more information.

You are not responsible for your Moms debts unless u signed something to the contrary. Why was Mom allowed to get this far in debt? What facility was or is she in. An Assisted living, Memory care or Nursing home setting? Why was Medicaid not applied for?

Taxes, if talking IRS and State Income taxes that depends on Moms monthly income. If most her income is from Social Security and she is under the cap, she may not have been required to pay income taxes. My Mom made 20k a year. 18,000 of that was SS the rest was a small pension. IRS said she no longer needed to file taxes.

Property taxes...if not paid a lien will be placed on the house. After a point, the house may be auctioned off to pay for the taxes.

If Mom has no money, then her taxes cannot be paid.

When you say she hasn't paid taxes, do you mean personal income taxes or property taxes? Can't have this conversation with you without specific details.

A senior doesn't have to file personal taxes if they are below a certain income level (you can find this info online when you search).

What is her debt from? Is it credit card debt? Mortgage? Loans? Need more info so you can get better guidance.

You can still file tax returns that are late. If you don’t have all the info order tax transcripts from the IRS. If her tax situation is pretty simple that should get you everything you need.

If she has nothing she should be on LTC Medicaid with her care being paid for by the state. Have you applied her for Medicaid? If the facility she is in doesn't take Medicaid you need to transfer her to one that does. Contact an elder care social worker for assistance if necessary.

You haven’t explained your mother’s financial position. Does she have an income, and where does it come from? If her income is just the pension, why isn’t she on Medicaid? Why is she in a place where the fees can be raised – if it’s private, how did she get in there? Does she own a house, or have other assets?

If she is in debt, has no assets and no income beside the pension, she should be made bankrupt by all her creditors, including cards and taxes.