Does my dad in nursing home need to file taxes? If so does it make sense that he owes?

Question

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

Don Priebe · Accepted Answer

The filing requirement for a single person for 2007 was $ 8,750 ($10,050 for a person 65 or older.) Social security is NOT included in this calculation. So it appears that he doesn't have to file a return, much less pay $350.

He should file a "Stimulus Payment" return this year however, to get his $300 stimulus payment. See the front page on

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Bill Brown · Answer

Don, you're assuming the OP actually included all the relevant information regarding his dad's tax situation. Either he omitted relevant information or he made one or more significant input errors while using Turbo Tax.

Does my dad in nursing home need to file taxes? If so does it make sense that he owes?

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