Rk99
Level 2

California 1099G, $600 additional weekly payments, and Medicaid Eligibility

My 1099G from California EDD includes the $600 weekly payments in the total, which put me over the income threshold to qualify for Medicaid/Medi-Cal. I know the weekly $600 payments are taxable, but I read on several government websites that they don't count toward Medicaid eligibility, and that only the regular unemployment amount does count toward total yearly income. I expected EDD to separate regular and additional payments, so they would be "counted" separately for different purposes, but they are all in the same box. Can I go ahead and file my taxes without worrying about my local Medical office mistakenly thinking I earned more than I should have for 2020 Medicaid eligibility and requiring payment back? I am filing jointly with my spouse, and the total income including the full 1099G amount put us over the Medicaid threshold by  a little over $1,800. 

Thank you in advance for your help!  

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CA does not tax unemployment, but the IRS taxes it on your federal return.   You have to enter the 1099G on your federal tax return.   The appropriate information will flow over to the CA return.

 

UNEMPLOYMENT COMPENSATION

Unemployment compensation is taxable on your federal return. 

You will have to enter a 1099G that is issued by your state.

Some states will mail out the 1099G.  Or you might need to go to your state’s unemployment website and use the password, etc. that you have been using to certify for weekly benefits to get your 1099G from the state’s site.

Enter your 1099G in Federal>Wages & Income>Unemployment

Go through the screens very carefully, making sure  to enter any federal/state tax you had withheld from the unemployment.

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-report-a-1099-g-for-unemploymen...

 

STATES THAT TAX UNEMPLOYMENT BENEFITS

AZ, AR, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MA, ME, MD, MI, MN, MS, MO, NB, NM, NY,NC, ND, OH, OK, OR, RI, SC, UT, VT, WV, WI

 

STATES THAT DO NOT  TAX UNEMPLOYMENT BENEFITS on the state return

AK, CA, FL, MT, NH, NJ, NV ,PA, SD, TN, TX, VA, WA, WY

 

https://ttlc.intuit.com/community/personal-income-taxes/help/how-does-receiving-unemployment-affect-...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Rk99
Level 2

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Thank you for answering so quickly. I already added that 1099G amount and definitely intended to report it all. What I am wondering about though, is how the California Medi-Cal eligibility office would be able to see that part of my income for 2020 was from the additional unemployment payments, which should not count toward eligibility, since EDD did not put those amounts in a separate category in the 1099G. 

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@VolvoGirl    @macuser_22    You are in CA, right?  Does this user have a reason to be concerned about the Medicaid eligibility in CA?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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@xmasbaby0 wrote:

@VolvoGirl    @macuser_22    You are in CA, right?  Does this user have a reason to be concerned about the Medicaid eligibility in CA?


I know nothing about Medicaid whatsoever.  That is a question that the CA Medicaid agency should be asked.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**