My mother is 85 and lives in an assisted living community. It costs $5,500 a month. She has a pension of about $40,000 a year and a slowly dwindling IRA (about $5,000 left) so I pay the shortfall. She has no savings left. It all went to her care. I pay her Medicare bill and the bills for her house which I hope to fix up and rent.
Since taking over her care I’ve filed her taxes every year but this year I just don’t want to. It seems unfair that she always ends up getting about $685 in a federal return which I then end up paying to the state. Funny how it always works out like that. So I’m wondering what will happen if I just don’t bother? The woman is 85 and basically has nothing. She worked her entire life, always paid her taxes and now at the end she STILL has to file? I know the rules around this and how it came to be (thanks Ronald Reagan), but I’m wondering what’s the worst that could happen if I just don’t bother.
I would check the requirements for Medicaid for your state, 40k annual pension most likely stops her from getting Medicaid. Check what you can do to get her qualified. My dad only gets 27k and he makes to much for assistance. We could have spent thousands for a Miller Trust but he didn't have any extra to cover the attorneys fees.
I think keeping the house to create income is a great idea, maybe you will get enough ROI to cover her monthly expenses.
Good job, keep it up! Your mom is very blessed to have you advocating for her.
Why don't you sell the house?
I'm very curious about the 45% deduction for memory care...
Makes me happy to be on the right side of the border - thanks for the reminder
Unfortunately I’m not wealthy but I have a good job and an apartment building so it all works for now. I’m four years from the first child heading to college and six years until the other. That will definitely complicate things. I’m a perfect example of the sandwich generation.
Kidding Op. Most of ours are beasts.
The house is always a thing. She has attachment. You have one too. That's understandable. But don't let it preclude your judgement and make you a prisoner of the memory, ok?
My mom was an educator too. Got doctorate and went on to be an educator at the college level. Widow since 48. 93 now. She, over course of her life, owned 10 houses, in 3 different states. Don't get me started on that.
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My Moms income was about 20k. 17k of that was SS. The rest was a sm pension. IRS sent her a letter saying she no longer need to file taxes.
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