URGENT: I just found out that a dear friend is at her wits end with her parents who are both citizens of the USA and permanent residents of Brazil. Her parents have been living in Brazil for the past 20 years where her father worked until he retired. Stupidly, her father did not report his income to the IRS and therefore did not pay a dime into Social Security. Her parents get $300/month from Brazil's pensioner system because her father did pay taxes in Brazil. They own an apartment in Miami and they own an apartment in Brazil. Neither apartment is worth very much and, if sold, might raise $200,000 total.
Her mother has Alzheimer's and her father has Parkinson's. Her parents are begging her to bring them to Florida where she lives. She has asked me for advice and I am meeting her this evening for a drink and just want to make sure I give her the best advice I can.
I see no way for her parents to be eligible for Medicare, Medicaid, or Social Security. But that's about all I'm sure of! Any other suggestions???
Another option is for your friend, and any siblings, to all chip in and purchase health insurance, such as Kaiser. I have a friend where her husband and his siblings, all U.S. citizens, would buy health insurance via Kaiser any time the parents came to visit. Their visits were usually over a year each time. Kaiser seemed to had worked well for them.
I assume it is the tax evasion problem that is the tricky part, right? I suppose they could be in trouble for that without even moving, but coming back to the US might bring it to light. That would be a serious offense, I assume, with serious penalties.
I sure can't think of a solution but cross you fingers that one of our other members will.
Has anyone contacted a lawyer (probably without revealing the names of the tax evaders?)
I agree with freqflyer, it is likely that her dad worked at some time in the US prior to moving to Brazil, and would have paid into the Social Security system. Regardless, they are eligible for Medicaid which is a needs-based program not based on paying in.
Also, assuming that the Social Security that they might be able to collect is not enough, they are able to apply for SSI. It is a needs-based program for people with disabilities (which it sounds like they both have). Here is a helpful page of info:
https://www.ssa.gov/pubs/EN-05-11069.pdf
However, the possible $200,000 that may come from the sale of the properties is nothing to sneeze at! That money could sustain them modestly with in-home help. When that is spent down, Medicaid and SSI might be options.
Best of luck,
Margaret
"4. I just realized that I must file U.S. income tax returns for prior years. How many years back do I have to file?
You must file a federal income tax return for any tax year in which your gross income is equal to or greater than the personal exemption amount and standard deduction combined (per the Form 1040 Instructions for the corresponding tax year). Generally, you need to file returns going back six years. This will depend on the facts and circumstances of your particular situation. For example, refer to Information for U.S. Citizens or Dual Citizens Residing Outside the U.S."
Could your friend's parents file and pay taxes for the previous 6 years? (No guarantee it would only need to be 6 years, but that is reasonable starting question.)
This will take a lot of time and money. Do they have valid passports? Might be difficult for them to come back.
Reading through your post and the answers a few times, I think the best advice to get is both from a good immigration attorney and a tax attorney (I can't remember for sure but I think they're called "enrolled agents"), to establish a foundation from which to work.
Was the husband working for a US corporation with a Brazilian subsidiary, or a Brazilian company directly?
Can the Brazilian pension, albeit nominal, transfer to the US so they still get these funds?
This is so complex, and it bridges the issues of citizenship or possible dual citizenship, not having paid taxes to the US, residency, needs issues.... I just think that attorneys skilled in these areas would be the best ones who could sort this out and offer suggestions.
Or perhaps the US Consulate could offer some guidance.
Please let us know the results of any basic legal advice; this is such a complex and unique situation.
“Begging her to bring them to Florida where she lives”. Oh boy....
And I really would think twice, and 3 - 4 times before selling the condo just yet.
Just thought of another option, in responding to the resurrected thread on oxygen. It's the Hill Burton Act, which mandates through federal statute that hospitals and facilities built with HB funds care for certain levels of indigent people. I don't know whether it would apply to US citizens who've lived out of the country for 20 years, but at this point it's worth a try.
http://www.needhelppayingbills.com/html/hill-burton_act_free_healthcar.html can provide more information.
How much contact and how close has your friend been over the years? Have her parents ever expressed concern about political instability or something similar?
Do you know when your friends parents had purchased the condo? I wouldn't be surprised if it was back when they were U.S. citizens prior to moving out of the country. Or did they buy the condo as non-citizens? That a different ball game.
Anywho, the IRS will be involved as the Foreign Investment in Real Property Tax Act of 1980 is a United States tax law that imposes income taxes on non U.S. persons disposing of homes in the United States.
This is not a DIY project.
My friend's father died suddenly last month while she was in Brazil preparing to move her parents to a nursing home she found in a quiet little Brazilian town and to pay for it with the money she raised from selling their condo in Miami. Then, she and her sister decided to MOVE THEIR MOTHER TO THE UNITED STATES!
Yes, friends, their mother with Alzheimer's boarded a plane and now is living with my friend's sister, who has an infant, and her husband, whose useless, and now they all got together and started begging for money through email and Facebook. The GoFundMyPoorDecisions requests have become uncomfortable.
I cautioned her many, many times against bringing her parents/mother to the U.S. because her father did not pay taxes. I told her nursing homes are expensive and that her parents would not qualify for Social Security, Medicare, or Medicaid. I told her as many of the things I have learned from the wise people on this forum throughout the years and it turned out I wasted my breath, time, and energy. Sigh. Whine. Sigh.
I do understand her dilemma; if this were my mother, I don't know if I could leave her in a foreign country. I guess I'd try to find a way to bring her home.
But to set up a GoFundMe page - well, to me that's really gutsy.
(I think this GoFundMe business has gotten out of hand.)
NYDIL, I am sorry that the situation turned out so poorly, but you've done as much as you can. I wouldn't feel obligated to contribute.
Is the husband working? Is your friend working?
It's sad that it turned out so poorly; seems like the death of the father might have changed the dynamics of the situation.
I hope your friend manages to find some way to get the assistance she needs, not necessarily just money, but actual care.
Has she contacted the Brazilian embassy? Brazilian groups? I know there are some in NYC b/c I watched a dance program (Bare Feet) on Brazilian style dancing. Maybe one of those groups could offer some help to your friend.