Home > News > 2008 > NJ Public Advocate urges seniors to apply for Economic Stimulus Checks, warns against financial exploitation of elderly seeking to obtain their rebates, 08/29/08
NJ Public Advocate urges seniors to apply for Economic Stimulus Checks, warns against financial exploitation of elderly seeking to obtain their rebates, 08/29/08
NJ Public Advocate urges seniors to apply for Economic Stimulus Checks, warns against financial exploitation of elderly seeking to obtain their rebates TRENTON – Some elderly and disabled people who require assistance to apply for their federal economic stimulus rebate are being over-charged by tax preparers and possibly exploited by the nursing facilities in which they reside, Public Advocate Ronald K. Chen said today. “We have had reports that some tax preparers are charging in excess of $100 to prepare a simple tax form and that some nursing facilities are helping senior residents prepare the forms but are scooping up the funds as soon as they arrive,” said Chen, who noted that the Office of the Ombudsman for the Institutionalized Elderly has identified and is investigating about a dozen such complaints. “We are asking nursing facilities to try to identify which residents are eligible for the stimulus funds and to help them get the necessary tax forms filled out,” said Elder Ombudsman Debra Branch, noting that many care facilities for elderly people are “doing a great job assisting their residents” to obtain the Stimulus funds while others “don't have any idea that this is even an issue.” Branch said a letter offering guidance on how to assist elderly and disabled residents with tax preparation was sent this week to 1,253 nursing facilities, assisted living and residential health care facilities in the state. The Internal Revenue Service (IRS) estimated earlier this month that some 5.2 million Americans are eligible for an economic stimulus check authorized by Congress but have yet to file. New Jersey has an estimated 156,768 residents eligible for the funds who have not yet filed and about 69 percent of those who have not filed are age 65 and older, according to the IRS. Chen cautioned that those who do apply for the stimulus check in advance of the October 15 deadline should be wary of tax preparers who charge exorbitant fees and should be aware that some nursing facilities may try to take a portion of the funds to cover unpaid expenses. In addition, Chen said, it is clear that some residents are mistakenly concerned that obtaining the rebate funds might affect their eligibility for Medicaid assistance, which covers the cost of nursing facility level care for thousands of New Jerseyans.
“There is no reason for these funds to in any way effect one's eligibility for Medicaid,” said Chen. “The residents, with the assistance of facility social workers or staff as appropriate, simply need to make sure that the funds are spent within 60 days of receipt of the check.” Information on how to apply is available on the NJ Department of the Public Advocate website at www.njpublicadvocate.gov under “News.” The Public Advocate website also provides specific information about how to ensure that the $300-$600 stimulus rebate does not adversely affect an individual’s Medicaid eligibility. People who are on fixed incomes such as Social Security Retirement, Social Security Disability, or Veteran Affairs benefits, as well as taxpayers who do not normally make enough to file a 2007 tax return can apply for the rebate under the federal Economic Stimulus Program. If an individual receives Supplemental Security Income (SSI) in addition to Social Security Disability (SSD), then he or she may also be eligible. However, those who receive only SSI do not qualify. The Internal Revenue Service has reported that there are 503,810 New Jersey residents who receive federal benefits who are eligible to file for the Economic Stimulus Program. As of June, however, about 156,768 of these individuals, or about 31 percent of those eligible, still had not filed.
"Every nursing home and assisted living facility has business office staff or a social worker who can assist their residents with this task,” said Elder Ombudsman Branch. Individuals living in the community can find helpful information and even ask specific tax and stimulus payment related questions to an IRS-certified Tax Aide volunteer at www.aarp.org/taxaide or 1-888-227-7669. They can also go to www.irs.gov or call 1-800-829-1040 for IRS assistance or to find an IRS Taxpayer Assistance Center (TAC) near where they live. In addition, Branch said that the Public Advocate is working with the Department of Health and Senior Services, the New Jersey AARP and other nonprofit organizations to provide outreach tax preparation and guidance services as the deadline for filing gets closer. “Our main goal is to make sure that vulnerable elderly people get and are able to keep the money they deserve,” said Branch, noting that reports of facilities taking advantage of elderly residents are few but examples of facilities that aren't assisting residents at all are many. “As we investigate reports of excessive tax preparation fees and the illegal seizure of stimulus checks from the residents, we are referring the perpetrators to the state's Medicaid Fraud Unit, the county prosecutor, and the professional ethics board for the appropriate disciplinary action,” said Branch. “But much of our effort right now focuses on making facilities aware of how they can assist their residents.” The Office of the Ombudsman for the Institutionalized Elderly is mandated by law to investigate all allegations of abuse, neglect, and financial exploitation of people age 60 and older, living in nursing homes and other long-term health care facilities. To file a complaint, please call their 24-hour toll free hotline at 1-877-582-6995. Links to Complete the Economic Stimulus Application
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