How will being in a nursing home change your tax situation? Say your nursing home cost is $75k per year. Assume your spouse continues to live in your home. Do you have the nursing home cost plus your normal house expenses? Is any part of the nursing cost deductible? My pension and SS are not enough to cover the nursing care. Currently withholding $1200/month for Federal and State taxes. Then anything I take from IRA will have to have taxes withheld as well. No LTC. Trying to look at potential scenarios. Does Medicare plus Medigap cover any of this? Looks pretty gloomy. My Gma spent 14 years in a home.
Nursing Home and Taxes
- Thread starter Idnar7
- Start date
Teacher Terry
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jun 17, 2014
- Messages
- 7,084
Each state is different and some have laws that prevent the other spouse from being impoverished. Once assets are spent down to 2k then Medicaid kicks in if you apply for it. Generally people can stay in their homes until the other spouse dies or goes into a home. You need to look at laws pertaining to your state.
audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Nursing home costs generally fall under deductible medical expenses. A large chunk should.
SumDay
Thinks s/he gets paid by the post
- Joined
- Aug 9, 2012
- Messages
- 1,862
When my mom was in for a couple of years, 100% of hers was tax deductible because she couldn't feed or dress herself, walk, and she had Alzheimer's. I don't remember the term, but it was something about "life skills" or something like that. So, it was nice to not have to worry about taxes since her nursing home cost more than their income.
My dad passed and we sold the house, so I don't know much about the spouse becoming impoverished. You may want to consult an elder care lawyer. And some of the bigger nursing homes have someone on staff that can help with financial issues.
Good luck to you.
My dad passed and we sold the house, so I don't know much about the spouse becoming impoverished. You may want to consult an elder care lawyer. And some of the bigger nursing homes have someone on staff that can help with financial issues.
Good luck to you.
Medicare covers skilled nursing facility charges up to 100 days, and MediGap covers your copay for those charges, as long as the stay is preceded by hospitalization. Neither will pay for continuous residence in a nursing home or assisted living. Medicare / MediGap will cover medical expenses while living in a facility, such as physician visit, physical therapy - the same health care coverage one has while living at home.
The entire cost of nursing home or assisted living care is an eligible medical expense that is tax deductible.
The Cosmic Avenger
Thinks s/he gets paid by the post
But Medicaid may pay for it, depending on your state, although IME the quality of care is much better if you can private pay: https://www.nolo.com/legal-encyclopedia/when-will-medicaid-pay-nursing-home-assisted-living.html
capjak
Full time employment: Posting here.
https://assets.aarp.org/rgcenter/ppi/ltc/i44-access-ltss_revised.pdf
page 22 has table by state, for example Illinois allows $109,500 in assets held by the spouse not including the home that the spouse lives in and a certain income.
page 22 has table by state, for example Illinois allows $109,500 in assets held by the spouse not including the home that the spouse lives in and a certain income.
marko
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 16, 2011
- Messages
- 8,427
This also varies state to state. My brother was private pay in a SNF and his therapists were begging me to get him on Medicaid (called MassHealth in Mass). "We could do so much more for him than what he's paying for".
Unbelievably there are limits on what you can self pay for therapy...in our state Medicaid allows somewhat more.
Last edited:
The Cosmic Avenger
Thinks s/he gets paid by the post
Yes, in addition to capjak's link, there's a link in my article. Nolo has a page dedicated to some state Medicaid requirements for LTC.
Thanks for the great responses. A little background: I am currently living at home. Steps upstairs are becoming more of a problem, wife wants to keep home. She doesn't want to sell family home to move to a single level home. I'm kinda at a loss on how to proceed: rent a single level apt, continue until I can't navigate steps,
wmc1000
Thinks s/he gets paid by the post
Idnar7, tough choice when DW refuses to move. Is there any space on first floor to have a daybed, pull-out sofa or other sleeping space for you if it comes to that?
capjak
Full time employment: Posting here.
I have witnessed some bad results from steps in homes...
My mom now 6 years in a nursing home after falling down the stairs and subsequent stroke.....
An older friend getting up in middle of night to go to the bathroom....wife finds him at bottom of stairs.....he did not survive the fall....
FIL same as older friend fell down stairs ended up with broken vertebrae and a screw in his neck...
gwraigty
Thinks s/he gets paid by the post
I can't imagine not being concerned about my spouse's ability to navigate our home. My FIL is the same way, with my SMIL.
Good suggestion. We bought a day bed for my grandmother to use when she visited with us over the weekend.
Idnar7, can you show your wife the above post?
marko
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 16, 2011
- Messages
- 8,427
Why not look into those stair climbing seats along with the potential of getting a PCA. "Aging in Place" is the new mantra with PCA's in high demand. Sure cheaper than a nursing home.
CardsFan
Thinks s/he gets paid by the post
marko
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 16, 2011
- Messages
- 8,427
PCA?
I tried to Google. Got Porsche Club of America. Pretty sure that is not correct.
Personal Care Assistant. Sorry, I'm too close to this subject at this time.
CardsFan
Thinks s/he gets paid by the post
Got it. Thought was something like that.
Thanks for the responses. This is not immediate issue. Just trying to look at future options. I have had Type 2 Diabetes for 15+ years and have issues with legs and balance. Plus had foot surgery last year. Currently can go up and down stairs with a cane. Had three falls (not on stairs) last winter indoors. We talked about converting a closet into a shower, but cost was prohibitive, plus would not help the value of the house. Might consider a cheap motel for sleep and shower if handicapped equipped. Just concerned with the cost of a nursing home plus house and wondering if there was any tax relief of a nursing home. My cousin had a stair lift and that was a great option. That might the next step. At least it addresses the steps and shower issue. Wife, while only two years younger, is as active as a teenager. She runs the steps.
Appreciate the feedback and will take it all in.
Appreciate the feedback and will take it all in.
ivinsfan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Feb 19, 2007
- Messages
- 9,962
This makes me sad...does your wife tell you her reasons behind her stance.? It doesn't make any sense.
Souschef
Thinks s/he gets paid by the post
I believe the term used is "Activities of Daily Living" (ADL).
Daily living activities are defined as:
- Eating.
- Bathing.
- Dressing.
- Toileting (being able to get on and off the toilet and perform personal hygiene functions)
- Transferring (being able to get in and out of bed or a chair without assistance)
- Maintaining continence (being able to control bladder and bowel functions)
Ed B
Recycles dryer sheets
In Texas, Medicare will pay for 100 days of skilled nursing care in a private room if the care is proceeded by a stay of at least 3 days in the hospital. Once the 100 days ends the patient can transition to Medicaid but they will only pay for a semiprivate room. If a spouse is still living at the home then the home's value and other assets are protected but I don't know the particulars. I recommend talking to an attorney that specializes in this. Just be wary if they start pushing certain legal products right away and make sure they are a good fit for your situation.
I ran into this when dealing with my widowed mother's situation when she transitioned from Medicare's first 100 days to the decision on whether to sell her house to private pay for a private room or do something like a Miller's Trust. I was able to sift through what the attorney was saying and selling but it took some time and effort. I had to ask many questions, sometimes the same question from a different angle, to get the answers we needed to make the best decision for her.
I ran into this when dealing with my widowed mother's situation when she transitioned from Medicare's first 100 days to the decision on whether to sell her house to private pay for a private room or do something like a Miller's Trust. I was able to sift through what the attorney was saying and selling but it took some time and effort. I had to ask many questions, sometimes the same question from a different angle, to get the answers we needed to make the best decision for her.
Teacher Terry
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jun 17, 2014
- Messages
- 7,084
At any time during that 100 days Medicare will stop paying if you aren’t making progress to get better because they don’t pay for custodial care. This happened to someone I know.
Teacher Terry
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jun 17, 2014
- Messages
- 7,084
Sleeping in a cheap motel is ridiculous when you guys can move. I feel so bad for you.
Bamaman
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Don't forget that there is assisted living available after someone is not able to take care of themselves at home--but not ready for full nursing home care.
My aunt was in assisted living at $2K per month including meals and a 1 bedroom apartment. She was there for 5 years before she went to a full nursing home for 3 years. The full nursing home was more like $4500 per month most of the time.
In the full nursing home, it was like a sea of blue hairs in the lunch room. The common thread was virtually everyone in the place was in a wheel chair. And they had RFD's on the wheelchairs to where an alarm would go off anytime the chair went outside. (Some residents tried to 'escape.")
When residents finally go through their cash and home equity (per state laws), then Medicaid finally picks up. And it takes a pretty poor person to be eligible for Medicaid.
This is when some residents try to place assets into their children's names, however states do in depth investigations on savings accts., stock accts. and real estate owned to verify that assets have been spent down. And they will go back on relatives found to be hiding assets.
My aunt was in assisted living at $2K per month including meals and a 1 bedroom apartment. She was there for 5 years before she went to a full nursing home for 3 years. The full nursing home was more like $4500 per month most of the time.
In the full nursing home, it was like a sea of blue hairs in the lunch room. The common thread was virtually everyone in the place was in a wheel chair. And they had RFD's on the wheelchairs to where an alarm would go off anytime the chair went outside. (Some residents tried to 'escape.")
When residents finally go through their cash and home equity (per state laws), then Medicaid finally picks up. And it takes a pretty poor person to be eligible for Medicaid.
This is when some residents try to place assets into their children's names, however states do in depth investigations on savings accts., stock accts. and real estate owned to verify that assets have been spent down. And they will go back on relatives found to be hiding assets.
Similar threads
