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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.

You need to either:
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
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This is such an interesting question. I cannot see how they can do this. The persons monthly income pays for their care as does Medicaid. Now Medicaid does not pay the full amt that they charge for private pay. After 3 months, my Mom owed 6k. Thats 2k a month plus her 1700 the NH was getting 3700 a month. They charged private pay 9300. A balance left is 5600. That is more than 50% of their care.

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.
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Mittens380,

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.
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Reply to HaveYourBack
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Wow....sounds fishy to me.
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Reply to Dawn88
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Here is was AI says: "Yes, a nursing home can claim a resident as a dependent if certain conditions are met. The nursing home must provide more than half of the resident's support, and the resident's gross income must be below a certain threshold (typically around $4,200)1. Additionally, the resident must not be claimed as a dependent by another taxpayer."
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Geaton777 Dec 20, 2024
I also did an AI browser search using the prompts:

"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.
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Mittens380: A business cannot claim an individual as a dependent.
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For someone to be claimed as a dependent, they must typically meet specific requirements related to their relationship with the taxpayer, residency, support provided and income. A nursing home resident would not meet these criteria for the business itself.

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.
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I do taxes . Businesses do not take dependents. If he was paying for board than if someone used his number and lied. The advice from IRS was confusing. How old is he? Does he really need to file? Prepare a return like he usually would . You will need to mail and send a letter explaining the situation. Throw it to them and they can figure it out. It might take awhile but definitely file now
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Its been over two weeks. Would be nice to know what OP found out.

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.
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Reply to JoAnn29
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I can't stress how important it is for you to continue to fight this. If what you are stating is fact. He is not the only one being abused.
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Reply to LoniG1
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If your brother is in a skilled nursing facility you need to contact department of public health. All facilities have that number posted. Make a complaint to them as this sounds like financial abuse,fraud. You may also file a complaint with the IRS as well. Department of Justice (DOJ) would also be interested in following up with your issue.
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Reply to LoniG1
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Businesses can’t claim dependents. Business tax forms don’t have that option.
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Reply to anonymous3000738
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There has been a misunderstanding here.
The POA for your cousin or your cousin will have to clear this up.
No, these facilities do not claim people as "dependents".
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Mittens380 Dec 11, 2024
Alvadeer, thank you for responding. I have to ask my brother who does he has as POA. He was told by his social worker that the facility claimed him as a dependent on their income tax. In addition, the IRS representative informed him the same thing too.

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.
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Brother is in Rehab? Medicare should have paid the first 20 days and 50% after that. As long as your brother is paying forbhis care, he is not a dependent for anyone. If he has gkne over the 100 days Medicare allows, then he now is private pay. Again,not a dependent for anyone. Even if he were on Medicaid and his SS going towards his care, not sure this can happen. You need to talk to a CPA. Did he question this with the IRS, claim fraud?
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Mittens380 Dec 11, 2024
Hi JoAnn, he is paying for their services and board stay. No, my brother who is the patient and my other brother who checks in on him accepted what the facility social worker stated as being legal for them to claim him.

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.
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A customer is not a dependent. If I ate at a McDonald's everyday...they wouldn't be able to claim me as a dependent, even though they did feed me.
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Mittens380 Dec 11, 2024
Hi Cashew, that is so funny your example but very true. I am not that well verse in the Medicaid and Medicare senior coverage but I sure know the smell of corrupt business practices.
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A business cannot claim an individual as a dependent. I've been a principle in a c-corp for 40 years. I've seen our federal and state (MN) business tax forms. There's no where to claim someone on the federal. Not sure about your brother's home state, but I don't see how it's possible.

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.
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Reply to Geaton777
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Do you mean the nursing home claimed him as a dependent? I'm not a lawyer or a tax expert but that sounds really weird to me. I would suggest he contact the ombudsman's office and get them involved.
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Mittens380 Dec 11, 2024
Hi LyndeeNew, thank you for your input too. I never heard of the Ombudsman's office; what level of government is that office located in? Or, is that a private organization?
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