Arizona Health Care Cost Containment System (AHCCCS), food stamps, claim individual receiving these as a dependent on my federal return.

For tax purposes, none of that would disqualify you from claiming that person as a dependent.

However, it is possible that if you claim that person as a dependent, it could disqualify that person from some or all of those benefits.

For the Arizona Medicaid (AHCCCS), if the person is your child, it would disqualify that person if you claimed that person as a dependent.  If it isn't your child, it would probably not disqualify that person.

For the Food Stamps, each State has their own rules, so you would need to contact your state agency to find out their rules.

Guess we will have to get a final answer, if possible, from AHCCCS but it makes me hopeful that we will probably be okay.

The part about AHCCCS, I am 99.999% sure about.  If they tell you otherwise, come back and I'll show you the legal gibberish.

An AHCCCS spokesperson said that my income would be included with hers and probably disqualify her from AHCCCS assistance.  Show me the legal gibberish if you believe otherwise.

I just want to confirm that this person is NOT your child, right?

That is correct, the person is not my child.

I am worried about losing my AHCCCS health benefits if my mom claims my son. She pays rent and all of the bills but I HAVE TO keep our insurance.

@TaxGuyBill - Is your response still current for 2017? Mom lives (shelter and food provided) with me but received AHCCCS benefits due to lack of income. I don't want her penalized.

Yes, it is still current.

@TaxGuyBill - So, I can claim her on both federal and state or only federal? Could you point me to "the legal gibberish" you mentioned?

I don't know Arizona state rules, but I would assume you can claim her for State as well.

The legal gibberish is on this thread, below.

https://www.law.cornell.edu/cfr/text/42/435.603#f


So the first bold part say the determination of a dependent is based on the entire Household income, UNLESS that person is NOT a spouse or a child.  In the case of a non-spouse, non-child dependent, you follow the rules in paragraph 3.

Paragraph 3 says the income eligibility is based on the income of that individual alone, unless their spouse and/or children under age 21 live with them, in which case the spouse's and children's income is included.

Legalese is confusing, in the final analysis is the "income of that individual alone" my taxable pension plus investment income or her total income which is zero?

Her total income, which is zero.

If my children are on ahcccs with me, can their father claim one of them as a child dependent on his tax return?

Yes. As long as all other qualifying criteria are met. The rules for a qualifying child include a relationship, age, residency, and joint return test.

 

For the age test, the child must be under the age 19 at the end of the year OR under age 24 at the end of the year and a full-time student, OR any age if permanently and totally disabled.

 

For the residency test, the person must have lived with the taxpayer for more than half of the year. In the case of children of divorced or separated parents or parents who live apart, the child must have been in the custody of one or both parents for more than half of the year.

 

Form 8332, Release/Revocation of Release of Claim to Exemption to Chile by Custodial Parent or similar document may apply if you are the custodial parent (parent with whom the child lived for the greater number of nights during the year). This form grants release to your claim to the child as a dependent.

 

Qualifying Child Rules

 

Form 8332

I want to know the answer to this, as well.

 

It’s my first year filing with my son. I am not married to his father, but he does support us (I did not work for most of the year 2019). I’m applying for AHCCCS for my son and I, and including my SO’s income, but need to know who should claim him? I know I won’t get much, if anything, back for him, but his father will since he makes the money.

But, I don’t want to risk my son not getting AHCCCS coverage because his father claimed him and I’m the one applying.

 

TIA!

You may want to get guidance from AHCCCS to make sure that your specific situation does not jeopardize your son’s coverage.

 

While you are waiting for guidance from AHCCCS, you can use TurboTax to try different scenarios for claiming the child between you and the father.  I have seen situations where there is not as much difference as you might think. 

 

So much of it depends upon the income levels that you earned during the year and how you structure the dependent and nondependent claims.

 

See this IRS publication concerning which parent is entitled to claim an earned income credit with a qualifying child.  See question four.

 

Make sure that the 8332 is prepared.

My daughter is 19 and a full time student who went away to college. She doesn't live at home. She files her own tax returns due to scholarships and a part time job.
If I claim her as a dependent (again, she doesn't live at home), will she be able to apply for AHCCCS based on her income alone?     
Thanks,
Rubi

Normally eligibility requirements for state agencies is out of scope this service but, please, select this AHCCCS link to find out more information. It has a wealth of information that will answer your question.

 

@Rubi