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Claiming Parent Who Receives Medicaid as Dependant

Forum|Forum|7 years ago
May 31, 2019
11 replies
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If I claim my parents as a dependant, can they still qualify for medicaid?

Best answer by TaxGuyBill

Because they live in a State that has 'expanded' Medicaid, if you are over age 21, YES, you can claim them as a dependent and your income will not be included to determine their Medicaid eligibility.

The following is ONLY for States that 'expanded' Medicaid'. States that did not 'expand' Medicaid may go by other rules.

http://kff.org/health-reform/state-indicator/state-activity-around-expanding-medicaid-under-the-affo...

(2) Basic rule for individuals claimed as a tax dependent. In the case of an individual who expects to be claimed as a tax dependent by another taxpayer for the taxable year in which an initial determination or renewal of eligibility is being made, the household is the household of the taxpayer claiming such individual as a tax dependent, except that the household must be determined in accordance with paragraph (f)(3) of this section in the case of—

(i) Individuals other than a spouse or a biological, adopted, or step child who expect to be claimed as a tax dependent by another taxpayer;

(ii) Individuals under the age specified by the State under paragraph (f)(3)(iv) of this section who expect to be claimed by one parent as a tax dependent and are living with both parents but whose parents do not expect to file a joint tax return; and

(iii) Individuals under the age specified by the State under paragraph (f)(3)(iv) of this section who expect to be claimed as a tax dependent by a non-custodial parent.

So your parent is calculated under (f)(3) which says:

(3) Rules for individuals who neither file a tax return nor are claimed as a tax dependent. In the case of individuals who do not expect to file a Federal tax return and do not expect to be claimed as a tax dependent for the taxable year in which an initial determination or renewal of eligibility is being made, or who are described in paragraph (f)(2)(i), (f)(2)(ii), or (f)(2)(iii) of this section, the household consists of the individual and, if living with the individual—

(i) The individual's spouse;

(ii) The individual's natural, adopted and step children under the age specified in paragraph (f)(3)(iv) of this section; and

(iii) In the case of individuals under the age specified in paragraph (f)(3)(iv) of this section, the individual's natural, adopted and step parents and natural, adoptive and step siblings under the age specified in paragraph (f)(3)(iv) of this section.

(iv) The age specified in this paragraph is either of the following, as elected by the agency in the State plan—

(A) Age 19; or

(B) Age 19 or, in the case of full-time students, age 21.

http://www.ecfr.gov/cgi-bin/text-idx?SID=f54e4bfca7c7d663f36cb10c0675f77b&node=42:4.0.1.1.6.7.67.4&r...

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prsnprodigyAuthor

Level 2

I live in California. Thanks.

DoninGA

Level 15

Go to this Medi-Cal website for contact information - <a href="http://files.medi-cal.ca.gov/pubsdoco/beneficiary/beneficiary_20196_2.asp" rel="nofollow" target="_blank">http://files.medi-cal.ca.gov/pubsdoco/beneficiary/beneficiary_20196_2.asp</a>

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sskarnik

Level 2

What is the guidance on this for tax year 2017? My mom lives with me and I would like to claim her as a tax dependent but only if she can still quality for medical assistance. If my claiming her as a dependent affects her medi-cal eligibility, then I'd rather not claim her.

T

TaxGuyBillAnswer

Level 13

Because they live in a State that has 'expanded' Medicaid, if you are over age 21, YES, you can claim them as a dependent and your income will not be included to determine their Medicaid eligibility.

The following is ONLY for States that 'expanded' Medicaid'. States that did not 'expand' Medicaid may go by other rules.

http://kff.org/health-reform/state-indicator/state-activity-around-expanding-medicaid-under-the-affo...

(2) Basic rule for individuals claimed as a tax dependent. In the case of an individual who expects to be claimed as a tax dependent by another taxpayer for the taxable year in which an initial determination or renewal of eligibility is being made, the household is the household of the taxpayer claiming such individual as a tax dependent, except that the household must be determined in accordance with paragraph (f)(3) of this section in the case of—

(i) Individuals other than a spouse or a biological, adopted, or step child who expect to be claimed as a tax dependent by another taxpayer;

(ii) Individuals under the age specified by the State under paragraph (f)(3)(iv) of this section who expect to be claimed by one parent as a tax dependent and are living with both parents but whose parents do not expect to file a joint tax return; and

(iii) Individuals under the age specified by the State under paragraph (f)(3)(iv) of this section who expect to be claimed as a tax dependent by a non-custodial parent.

So your parent is calculated under (f)(3) which says:

(3) Rules for individuals who neither file a tax return nor are claimed as a tax dependent. In the case of individuals who do not expect to file a Federal tax return and do not expect to be claimed as a tax dependent for the taxable year in which an initial determination or renewal of eligibility is being made, or who are described in paragraph (f)(2)(i), (f)(2)(ii), or (f)(2)(iii) of this section, the household consists of the individual and, if living with the individual—

(i) The individual's spouse;

(ii) The individual's natural, adopted and step children under the age specified in paragraph (f)(3)(iv) of this section; and

(iii) In the case of individuals under the age specified in paragraph (f)(3)(iv) of this section, the individual's natural, adopted and step parents and natural, adoptive and step siblings under the age specified in paragraph (f)(3)(iv) of this section.

(iv) The age specified in this paragraph is either of the following, as elected by the agency in the State plan—

(A) Age 19; or

(B) Age 19 or, in the case of full-time students, age 21.

http://www.ecfr.gov/cgi-bin/text-idx?SID=f54e4bfca7c7d663f36cb10c0675f77b&node=42:4.0.1.1.6.7.67.4&r...

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prsnprodigyAuthor

Level 2

Any link to where this information is provided? Greatly appreciated. Thank you.

DoninGA

Level 15

You would need to contact your state Medicaid agency to get the answer.

C

CarrieH

Level 2

Is this something new for the 2019 filing year? I was told at our local Illinois Medicaid office I could not claim my 19 year old disabled son in 2018 without it effecting his coverage. I am very worried about his eligibility

DMarkM1

Level 15

That is usually the case. Your son is more likely to qualify for Medicaid if you don't claim him as a dependent. If you claim him as a dependent, his household income for Medicaid purposes will include your income. If you don't, he can apply as a single individual and only his own income will count, even if he lives with you. Here is a link with information on the subject in IL.

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C

CarrieH

Level 2

That is the complete opposite of what was replied above about a disabled 23 year old daughter. Over age 19 in a state with expanded Medicaid only his income counts. He only has SSI income and will not be filing a return. Still unsure. Would love that extra bit on my return but don't want to cause problems

L

lkeaner

Level 2

My daughter and grandchildren are currently all receiving medicaid health care

They have lived with us for the past year. If I, the grandparent, claim the grandchildren as dependent on my federal and state taxes will it interfere in anyway with them qualifying/receiving their medicaid?

DoninGA

Level 15

@lkeaner wrote:

My daughter and grandchildren are currently all receiving medicaid health care

They have lived with us for the past year. If I, the grandparent, claim the grandchildren as dependent on my federal and state taxes will it interfere in anyway with them qualifying/receiving their medicaid?

That is a question you will have to ask your local Medicaid office.

B

bronecki007

Level 2

Hello!

I am from Michigan and my mother-in-law lives with us. I claim her as a dependent on my income tax returns as she has no income. My wife is a student with no income. The family of (4) me, wife, child, mother-in-law adjusted gross income is $53k. I would like to apply for Medicaid for my mother-in-law, will having her as a dependent on my income taxes effect her eligibility? Will she be eligible for Michigan Medicaid if I claim her as a dependent or would it be better to not claim her?

Thank you for your help! It is greatly appreciated.

VictoriaD75

Level 12

You will need to contact the administrator of the plan for specific eligibility requirements. I have found the link below with contact information provided.

Healthy Michigan Plan

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Prestijoes

Level 2

My fiancé and our child are on medicaid. They live with me. Can I claim them both as dependents without effecting their eligibility? Would filing jointly effect their eligibility?

X

xmasbaby0

Level 15

You cannot file a joint tax return with your fiance. You can only file a joint tax return with someone to whom you are LEGALLY MARRIED.

As for whether claiming them as dependents on your own tax return will affect their eligibility for Medicaid--that is a question for Medicaid.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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drhellga

Level 2

I am filing taxes for 2020 as head of household in IL claiming my parents as dependent.

They received Medicaid in 2021

two questions

1. Since I am filing for 2020 when they did not have Medicaid, it should not affect the fact they got Medicaid approval in 2021, right?

2. Will it affect Medicaid eligibility for 2021? Shall I NOT file them as dependent in 2021?

IL has expanded Medicaid and they are both above age 65 with no income, so from what I read MAGI calculation is not applicable for them given their age.

Would appreciate your help!

B

BillM223

Level 15

"1. Since I am filing for 2020 when they did not have Medicaid, it should not affect the fact they got Medicaid approval in 2021, right? "

Plus review the requirements to claim an older relative as a dependent (a "qualifying relative") to be Head of Household on Table 2-1 on page 25 in IRS Pub 17 and Table 3-1 on page 26 (to see who is a qualifying relative). Specifically, they cannot make more than $4,300 (each) and you must provide half of their support.

If you satisfy these tests, then you may be able to file as Head of Household because you have two qualifying dependents.

"2. Will it affect Medicaid eligibility for 2021? Shall I NOT file them as dependent in 2021? " We address income tax issues on this forum. Medicaid not only has its own rules but they vary from state to state.

I would encourage to contact someone who deals with Medicaid in Illinois for the answer to question #2.

@drhellga

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