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Thank you for reply @MaryK4 

It's more than $500 at stake: If they are my dependent, I'd get to claim Head of Household status VS being "single" filer. HoH provides higher deductible, so it saves thousands of dollars.

 

But I don't want risk having to repay the cost of medicaid as it would be unaffordable to me.

So, I want to  make sure I am compliant.