I am in the process of applying for elderly care waiver/Medicaid for my dad in the state of Minnesota. They are telling me to stop having taxes taken out of my dad's pension checks as he will be short $150 per month if they continue. My question is will he be required to pay taxes once on Medicaid as there will not be any money left?

But in 2018 itemized deductions changed. Consult a tax preparer or check AARP for tax workshops.
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rocketjcat Dec 20, 2018
Yes you’re correct. Who knows what the tax mess will mean for this year. Regardless of how they change it however, they’re still not going to get any money out of her.
I too was confused about that when I applied for NH Medicaid in NY. I used to do Moms short form taxes myself, and she would get back a small amount, but when I did her taxes that year with no withholding, it came out that she owed some money. So I took them to my accountant for clarification the first year she was on Medicaid. We did a very simple long form, and he showed how the amount she spends on the NH each month (her share of cost) is a medical expense on itemized deductions. This more than offset the fact that she had no withholding, and she owed zero. It may be the same in your case.
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Reply to rocketjcat

My Mom and MIL paid no taxes after they lost their spouses. Both made about 20k a year most of that SS which isn't taxed. I would do as they ask. It won't be a problem till 2019 taxes. He may not have to file. If he does, he may not owe. If he owes, oh well, no money and you are not responsible for that.
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