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My dad has 3 Pension Checks and taxes are currently taken out - the nursing home has asked to call each company and tell them to stop taking out the taxes prior to applying for Medicaid - Is this the correct process?

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Glad, I actually wasn’t trying to fight the system, I was just really confused since stopping the tax withholding on her pension caused her to owe $1200 in taxes when I did them the “old” short form way. Thankfully our CPA showed me the error of my ways and it washed out to zero. I was just trying to reassure the OP that this all works out correctly.
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Even if there was a refund it would still go to Medicaid for reimbursement. A measly refund is not worth the effort to fight the system, IMO.
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Yes, when I applied for Moms Medicaid, the Medicaid caseworker also told me to have no taxes withheld from her pension check. This maximizes the amount the NH will get. I was concerned that it could affect her measily income tax refund. But when our cpa did her taxes this year he used the long form so he could claim the $40K, her portion of the NH bill, as an medical expense so she owed nothing, and got no refund.
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If dad is in nursing home it has been prescribed by his doc. The cost would be deductible, so dad would have no income. Everything would be deducted as a medical expense. No taxes owed. But, I would check with dad's CPA.
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