I live in New Jersey and my brother is in Alaris Health at West Orange facility. He has been in there after having cancer removed from his bladder. He has been trying to find affordable housing during his rehabilitation there and it is taking a long time.
As a result, the facility required him to pay for his room and board. My brother attempted to file his income tax but found out from the IRS that someone else claimed him.
The agency later informed him that his nursing facility named Atlaris Health at West Orange claimed him on their company taxes. Is this legal?
He didn't give them any consent neither did they informed my brother they would be filing him on their income taxes.
How old is your brother?
Is it possible he has a legal guardian? Is it possible someone (an individual at Atlaris) is doing something shady and claiming him?
Does your brother actually make an income that requires reporting? If he filed personal income taxes this would not intersect with federal business tax filing.
A more likely explanation is I think he got his info wrong.
I am the suspicious one in my family who questions businesses shady practice. The Alaris health representative already have a good idea that my brother and other siblings don't question authority. I will relay your tip in action to my brother and thank you for your input.
The POA for your cousin or your cousin will have to clear this up.
No, these facilities do not claim people as "dependents".
When my other brother told me this, he was given some phony bologny that the can put him as a dependent on their business income tax. My detective ears when on alert not to accept what was told them by the facility representative.
When I researched this "can my nursing home claim me as a dependent on their income taxes" all that comes up is children trying to see if they can claim Mom as a dependent.
If you suspect fraud, such as a nursing home falsely claiming residents as dependents, it should be reported. You can file a complaint with the IRS using Form 3949-A for suspected tax fraud. Alternatively, you can contact the IRS Tax Fraud Hotline at 1-800-829-0433.
If you have other concerns related to the resident’s finances or care, you may also want to contact your state’s long term care ombudsman or Adult Protective Services.
"can a nursing home facility claim an individual resident as a dependent"
and
"can a business entity claim an individual as a dependent"
Both times it came up as "no" or it couldn't answer the question because it is not at all possible. Please read the responses from tax preparers and officers in corporations (as I am) that there is no where on the business tax forms to actually do this.
If a resident has no money and is totally dependent on others for financial support, they are probably the ward of the county, a Medicaid resident, or both. Why would a facility claim dependents (because I don't think any deduction is dollar for dollar) when they can have costs covered by Medicaid and the person's SS income?
If an individual is a ward of the county (has a 3rd party legal guardian) then maybe that's where the elder is a "dependent" status? But it would NOT be the NH unless the IRS and individual state Dept of Revenues have special rules for only NHs.
In answer to your question, the Ombudsman’s office is typically a government funded entity, though it operates independently to assist the public. In the case of Medicare or long term care, the Ombudsman program is supported by state or local governments to help individuals resolve issues with healthcare or elder care services. It’s not a private organization but acts as an advocate for people navigating these systems.
The OP does not say this is private pay. Could be he is handing over his monthly income and the NH filed for Medicaid for him. We had a OP a while back that said a NH filed for Medicaid without their knowledge.
I hope OP has sought out help and updates us. I have researched too and it always vomes back to a child being able to claim a parent.
1) contact an attorney specializing in these situations / care.
2) Call the IRS (too)
3) Talk to administrator at the nursing home
4) Read your contract - it is likely all spelled out.
You can also contact the licensing board of the nursing home.
This information should be posted in the lobby for the public to read.
In any case, it would be easy to find out who to call.
Gena / Touch Matters