My dad was in a nursing home all of 2007. The expenses of the nursing home were covered by a long term care policy and his retirement funds. The policy and his retirement funds expired in Feb 2007. At this point he qualified for Medicaid. As far as I can tell he needs to file a tax return. Is this correct? Also, using Turbo Tax He ends up owing ~$350 which doesn't make sense to me. Does anyone have any ideas?
Relevant 2007 Info: Social Security Income $18,321 LTC Benefit $7,920 Private pay amount to Nursing home: $4,905 Private pay insurance: $ 1,031.
Thanks