If anyone in the US has ever earned money, declared it, and paid taxes on it while living in a nursing home, please post here or contact me by PM. Or, if a legal professional knows the answer to this question, again, please post or contact me by PM. The obstacles are, to my knowledge, insurmountable.
The answer was “Yes”, one can work and earn money while in a nursing home. The social security money that a person receives each month goes to the nursing home, minus $60 or so of the money which the resident gets for small expenses. Money earned by the resident that goes into his bank account can not be attached by the nursing home. The lawyer I spoke to was only addressing my local situation in Texas.