If the person filling out forms with the welfare office stating that they are a separate household (even if they are living with you) then they might lose their benefits. I would ask someone who works for your local welfare office or a financial professional as the person can have legal consequences for providing improper information on their welfare paperwork. If you are not considered a member on their caseload then you should be very careful. I can't tell you 100% yes or no as I am not an employee of either IRS or welfare but from my understanding, they can lose their benefits and even face repercussions.
