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My client has been in a coma for most of 2019 and resides at an assisted living facility. His pension is sizable and used entirely for his care. Is a tax return required?
Nettie
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Yes, assuming that by "sizable" you mean greater than the income filing requirement.
Some (perhaps all) of the payment to the assisted living facility may be deductible as medical expenses.
( Generic Comment )"
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Don't tell us, tell IRS by filing a tax return and showing the medical expenses on Schedule A.
Who remembers 2017, when the Senate wanted to repeal all medical deductions?
And then there are some states that don't allow any deductions. Think of this client when someone says what this country needs is a flat tax.
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Yes. They would need to file, but those expenses can be deducted as medical expenses on the schedule A. I have a few clients who have a similar situation. They don't end up owing tax, but they do need to file.
