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???
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.
This will take a lot of time and money. Do they have valid passports? Might be difficult for them to come back.
"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.)
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
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?)
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.