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Ask the taxgirl: Medicaid and Rebates

by Kelly on February 22nd, 2008

Taxpayer asks:Would my Mother who is on Medicaid and in a nursing home – be eligible for the stimulus payment? The money would be deposited into her checking account to help by for “extra” things for her at the nursing home.
She doesn’t file because the only source of income is SS – 14,300.00. Out of which, we pay the nursing home $10,800 a year and AARP 167.00 every month.
I was just wondering would she be eligible for the Tax Rebate since she is on Medicaid at the nursing home. Thanks for answering me back.

Taxgirl says:
Thanks for the question.

First, your mother (and any other taxpayer) must file in order to receive a rebate. Those taxpayers who do not file will not receive a rebate. So, if she doesn’t normally file and she wishes to receive a rebate, she must file for 2007.

Second, Social Security recipients are eligible for the tax rebates.

So, I am guessing that, under these facts, your mother would receive a rebate so long as she files.

The bigger issue is whether she would be entitled to keep the rebate from the nursing home. Medicaid recipients have income limits and resource limits; even though it’s a federal program, liability and regulations may vary by state. You may wish to check with social services if you have questions.

For more information on tax rebate eligibility, check out my prior post.

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

Have a question? Ask the Taxgirl!

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