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My sister passed away this year and had savings from Medicaid allowances. I paid her funeral with it, but is the remainder going to be taxed or given back to state?

The remainder is about $400 and I was going to give to her daughter.  Just wanted to be sure before I gave it away.  Thanks
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DanielV01
Expert Alumni

My sister passed away this year and had savings from Medicaid allowances. I paid her funeral with it, but is the remainder going to be taxed or given back to state?

No.  Medicaid payments are not taxable.  Even if they were, an inherited amount is not taxable to the receiver (and there was far too little income to be taxable to your sister).  We are deeply sorry for your loss.

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1 Reply
DanielV01
Expert Alumni

My sister passed away this year and had savings from Medicaid allowances. I paid her funeral with it, but is the remainder going to be taxed or given back to state?

No.  Medicaid payments are not taxable.  Even if they were, an inherited amount is not taxable to the receiver (and there was far too little income to be taxable to your sister).  We are deeply sorry for your loss.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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