My uncle receives Social Security/private retiremt income. 2023 he is under Medicaid. He must assign that income to them. Is it considered income to him for tax purposes?

[xmasbaby0]

"He must assign that income to them."

Who is "them?"   Please clarify.   Is your uncle in a nursing home that is being paid for by Medicaid?   Is his Social Security and pension  (or whatever you mean by "private retirement income") now going directly to the nursing home, and is the difference between those being paid for by Medicaid?

Does he have a spouse with whom he would file a joint tax return?   What is the amount of his SS?  His pension?    Or is the "private retirement income" coming from some other source?

Please provide some details.

[Opus 17]

Yes, the social security benefit and pension are still taxable income and must be reported on a tax return.  If tax is owed, he should be able to pay that from his pension or benefit before the rest goes to the nursing home.  (The nursing home should make allowances for the taxes.). Check with the nursing home business manager.  He may want to have taxes withheld from social security and the pension by the payers, before the rest is sent to the nursing home.

The nursing home expenses he pays out of pocket (the after-tax amount that is assigned to the nursing home) can be listed as itemized deductions for medical expenses, but he may not actually see a tax reduction depending on the amount of the pension and other income.

[pakikiheiya]

In order to be in Medicaid you have to meet requirements such as income, assets etc. My uncle met all the requirements. In order to be in Medicaid program, he has to assign his Soc Sec n other retirement incomes directly to Medicaid program NOT to the nursing home. That's how he can afford n live in the nursing home. My uncle is single. 

Hope that helps you to help me. Thanks

[Critter-3]

First is IS income to him however if he qualified for Medicaid then he is most likely under the amount where he is required to file a tax return.  He should have gotten the SSA-1099 and 1099-R in January so you can confirm that he is not required to file or file for a refund of withheld taxes.