With the second round of stimulus payments on the way, the Federal Trade Commission (FTC) is reminding Americans living in nursing and assisted living homes that if they qualify for an economic impact payment, it is theirs to retain.

During the first round of economic impact payments, the FTC and other federal agencies became aware of situations where some nursing and assisted living facilities confiscated their residents’ payments, based on the premise that, because they are receiving Medicaid, the facilities are thus entitled to the money.

In reality, some of these homes took advantage of a vulnerable portion of the population, who many times lack family support and are left to the mercy of such facilities.

These allegations prompted the IRS to issue a reminder that 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, not income for benefits purposes, which is why it is not taxed.

If you know or have a relative in an assisted living facility or nursing home, let them know that the economic impact payment is theirs, and if you know of a facility that misappropriated their residents’ money, contact the state Attorney General and the FTC.
For more information go to: https://www.ssa.gov/coronavirus/, https://www.irs.gov/, https://reportfraud.ftc.gov/

Aline Wright is a Law Clerk at Lardiere McNair DiNicola & Stonebrook, Ltd.  To read more about our firm, please visit lawyerscolumbusohio.com.