Under the
new law, which took effect last year, the top personal income tax rate was reduced and standard
deduction amounts were increased, benefiting most taxpayers. But some taxpayers
can no longer deduct medical expenses because itemized deductions are no longer
allowed. As a result, some people eligible for Medicaid long-term care who are
contributing nearly all of their income toward the cost of their care may
now face a state tax liability - but may not have the funds to pay.
EOHHS has
developed a process that essentially allows an eligible individual’s patient
liability to decrease by the amount of the individual’s tax -- thus ensuring that someone in such circumstances who has insufficient resources will not be unduly harmed by having to pay two liabilities. For
details, click here to read the state EOHHS memorandum.
