Nursing Homes and Care Facilities and Economic Impact Payments

There has been stories that nursing homes and other care facilities have been taking their resident’s/patient’s Economic Impact Payments (EIPs).

If you have a loved-one in a nursing home or other care facility, check to see that the facility has not absconded with the EIP. If so, you may to hire an attorney to send a demand letter to recoup the EIP. Under the IRS guidelines, the EIPs belong to the recipients, not any organizations providing care for the recipients. Be aware and check on this as there has been stories that people and businesses may be taking advantage of vulnerable populations who received the EIPs.

The payments are intended for the recipients, even if a nursing home or other facility or provider receives the person's payment, either directly or indirectly by direct deposit or check. The Social Security Administration (SSA) has issued information on this issue, including how representative payees should handle administering the payments for the recipient. The IRS also noted the Economic Impact Payments do not count as resources that have to be turned over by benefit recipients, such as residents of nursing homes whose care is provided for by Medicaid.

The Economic Impact Payment is considered an advance refund for 2020 taxes, so it is considered a tax refund for benefits purposes. Don’t let the care facilities tell you otherwise.

We represent clients at all administrative agency and appeal levels, the Arizona Tax Court, and the federal US Tax Court, and throughout Arizona: Phoenix, Glendale, Peoria, Scottsdale, Mesa, Tempe, Chandler, Queen Creek, Yuma, Casa Grande, Tucson, Sierra Vista, Bisbee, Flagstaff, Prescott, Payson, Coconino County, Yavapai County, Maricopa County, Pima County, Cochise County, Pinal County.