Information about the new ADA law

[taxref]

"So I'm wondering if anyone knows yet what line on the tax return would be considered income per the new law."

It would not be a line on ones tax return.  Rather, what comprises income for this purpose would be formulated by the state medicaid office, using federal medicaid guidelines.  Since medicaid is intended as a means test program (one cannot exceed certain income and asset levels to be eligible), certain items not subject to income tax are most likely not exempt for medicaid purposes.

"...that if they received more then $2100, not exact number but close then they have to create a Miller trust and put all excess into it, then when they die the state gets it all, I imagine that would be for a nursing home."

That is close to being correct.  To be eligible for nursing home medicaid, there is an income limit determined by the individual states.  If a state chooses $2,100 as a limit, but the person has $3,100 in income, to get nursing home medicaid the person must make a Miller Trust, and deposit $1,000 into the trust each month.  If the nursing home resident has a spouse not in long term care, that spouse will be sent a portion of the $1,000 from the trust.  The remainder will go to the nursing home.  If there is no spouse, the full $1,000 goes to the nursing home.

The trust is only for income, not for exempt assets.  Assets are dealt with separately.

Edited to add: I should note that this answer does not cover all the details, and is only intended to give the basic idea of how this works.  As with most government programs, there are a number of twists and turns involved.  I hope, though, that this can get you started on the subject.

[TheOtherMe]

My BIL's father sold a farm for a sizeable sum of money.  Just a small farmer with less than 200 acres.  He spent 17 years in a nursing home with Parkinson's and was on Title 19 for many years.  BIL's mother got to keep their home in town.  She later sold it and moved to an apartment.  This was after he had passed away.  That money paid for her nursing home care.  When she died, she would have gone on Title 19 the next month.  Those six children did not inherit a dime.  My BIL had POA and some of them still think he took some money.  No, it all went to the nursing home.  

[rangerj]

Now that the ACA has passed and has been signed into law, which was held to be a legal and constitutional tax, we can now find out what's in it. No worries mates, if you like your insurance plan you can keep your insurance plan, if you like your doctor you can keep your doctor, and by the way the ACA is NOT a TAX according to our President. Gee, was the Congressman who was chastised for yelling at the President "you lie" correct? Where does the idea that folks are "ENTITLED" to health care, which is a service, and have the services paid for, or subsidized, by the taxpayers come from? What's next, government tax money subsidized cell phones? Currently the amount of money paid into Medicare pays only one third of the Medicare costs. The rest is subsidized. This cannot continue. Either the amount paid in needs to triple or the amount paid out need to be reduced by 2/3. Social Security also needs to change. The amount paid to an individual needs to be limited to what they paid in plus what it would have earned over the period it was held by the government, less the cost of the death and disability insurance benefits. I would prefer a privatized system but as a practical matter the majority of folks would either not save at all, or would invest in things like Beany Babies or beer can collections. Every time something is paid for by the government, state, local or federal, that means the money came for the 50% who pay taxes. The money did not come from heaven, or otherwise magically appear. Social welfare subsidies should come from charitable organizations and not government via taxes. To the point regarding nursing home services, they should be paid for by the person receiving the services. Try telling your auto mechanic that you would prefer to give your money to your kids rather than pay for his/her services. For those who want the government to take care of you do yourself a favor and have a heart to heart talk with an Indian ( as in one of the U.S. aboriginal people).

[taxref]

I would suggest that this thread is now outside the parameters of the Tax Talk section of MSN Moneyboards Refugees.  The first thread in Tax Talk, posted by Moonbeam, describes those parameters.