Question about claiming dependents w/Medicaid

[onevoice247]

My daughter and grandchild live with me and my significant other and have for the entirety of 2020 (and will in 2021). My daughter and grandchild are both on Medicaid and receive EBT benefits. There is no actual income involved for my daughter for 2020. 

We're trying to figure out who can and should claim them, and if doing so impacts their Medicaid coverage going into 2021. 

Do you know:

1. In order for them both to be covered by Medicaid going forward, my adult child has to file a return and claim her child, even if she had no income?

2. If there is no requirement for her to claim her child in order to stay on Medicaid, I know I would be able to claim them both. Right? 

3. But can my SO claim them? We are not married, have been living together for 15 years and jointly own the home. It may benefit his tax burden more if he is able to be the one who claims them but we just don't know the best way to proceed. 

Thanks for any guidance! 

[xmasbaby0]

!.  If your daughter has no income she has nothing to enter on an income tax return.  She is not eligible for any child-related credits on an income tax return, since those credits are based on receiving income by working.

2.  If they both lived with you and you paid for over half their support you may be able claim them on your tax return.  I will put the criteria for claiming a dependent down below.

3.  If your SO is the one who paid for over half their support and they lived in the home for the whole year, all he "gets" for claiming them is a $500 credit for other dependents.  He cannot get Head of Household filing status, cannot get EIC, child tax credit, childcare credit, or stimulus money for the child.  They are unrelated to him.  So any tax benefit to him is minimal compared to yours.

As for whether claiming them affects Medicaid and EBT---ask the agency that controls those benefits.

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

https://ttlc.intuit.com/questions/3113432-who-can-i-claim-as-my-dependent 

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, fiance (etc.) as a dependent on your 2019 taxes as long as they meet the following requirements:

Qualifying child

• They are related to you.

• They cannot be claimed as a dependent by someone else.

• They are a U.S. citizen, resident alien, national, or a Canadian or   Mexican resident.

• They are not filing a joint return with their spouse.

• They are under the age of 19 (or 24 for full-time students).

• No age limit for permanently and totally disabled children

  •      They live with you for more than half the year (exceptions apply).

Qualifying relative

• They don't have to be related to you (despite the name).

• They cannot be claimed as a dependent by someone else.

• They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.

• They are not filing a joint return with their spouse.

• They lived with you the entire year.

• They made less than $4300  (not counting Social Security)

• You provided more than half of their financial support. More info

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them.

Related Information:

• Does a dependent have to live with me?

• What does "financially support another person" mean?

• Can I claim a newborn baby?