Can I be claimed as a dependent if I have Medicaid?

[edennerose]

Remember when the ACA website wasn't working? I went on and filled out an application then got an email saying I didn't qualify for anything. I was pregnant with my first child and a waitress at the time, things didn't seem like they would work out logistically or financially, so my boyfriend and I decided to move in together. Now 11 months later I get an approval letter from the Ohio Medicaid office with a card saying I have been enrolled since the beginning of the year. My boyfriend has been supporting our entire family and claiming 3 deductions to receive the largest possible paychecks. Now I am worried that he won't be able to claim me on his taxes and will actually have a tax bill after all is said and done. I called the Medicaid office and explained the situation and I'm not sure anyone understands the predicament, one lady just kept asking me why I would want to pay for insurance if I didn't have to.. I mean we have already paid my premiums for 10/12 months for this year so it's not like it's worth the cost savings at this point. Also my son is 7 months old so I will be returning to work soon, I don't expect to qualify for Medicaid next year. Can my boyfriend claim me or are we totally screwed? Is there a way to turn down Medicaid?

[bwa · Accepted solution]

Having or not having Medicaid has no effect on whether your boyfriend can claim you as a dependent or not.  He can claim you as a dependent if in addition to being a citizen of the US or a resident of the US, Canada or Mexico:
     he provides more than 1/2 of  their support,
     you earn less than $3,900 in gross income subject to tax (social security doesn't count).
     you don't file a joint return with another
     you live with your boyfriend all 365 days of the year

[edennerose]

I thought because I am dependent on his support his income would disqualify me for medicaid, but I can't get a straight answer from the Medicaid office. I just assumed he wouldn't be able to claim me without causing trouble. I definitely qualify as his dependent I'm just not like kind of person to take aid I don't need and/or do something illegal. It feels like double dipping.

[bwa]

I can answer the question on dependents but not the Medicaid issue, as it's not really a tax question and is beyond my expertise.

[TaxGuyBill]

So your actual question is "Can you have Medicaid if you are claimed as a dependent?".  Right?

Do you live in a State that has expanded Medicaid?

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

If your State has expanded Medicaid, your boyfriend claiming you as a dependent will NOT affect your eligibility for Medicaid (see below for the legal gibberish).

If your State has not expanded Medicaid, I don't know.  Each State has different rules.

(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;

(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.

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


Translation:  If the person claiming you as a dependent is not your spouse or parent, it is only YOUR income (plus income of spouse, children, and parents that LIVE with you) that determines your Medicaid eligibility.

[admkatfish]

Can you provide a source for this information? I want to be sure about the situation before committing to filling a dependent. Thank you!

[TaxGuyBill]

I just added the link to the Regulation that I cited.

[admkatfish]

Thank you!

[wen_tg]

I got confused. Both my parents have medicaid. If I claim them as dependents, will my income influences their medicaid eligibility? I am in CA where theres expanded medicaid

[TaxGuyBill]

No, it should not affect their eligibility.  If you want, you can contact your local Medicaid office.
<a href="http://www.dhcs.ca.gov/Pages/default.aspx" rel="nofollow" target="_blank">http://www.dhcs.ca.gov/Pages/default.aspx</a>

[admkatfish]

If you do though make sure to specify your situation and try to talk to an actual medicaid case manager.  I went through several rounds of getting different answers and lots of waiting on hold before confirming whether it would influence it or not. The link to the regulation is the information that dictates that, although it can be very confusing to try to follow and I even had a hard time getting the case manager to follow the regulation with me.  Good luck!

[Daniel263]

I made $150,000 this year but I am on commission. I just happened to have a good year and my income depends on the work that comes in. The mother of my daughter lives with me because she has nowhere else to go and she has state insurance as does my daughter. I want to make sure I’m not going to get in trouble with claiming my daughter. I want to put her on my insurance but I missed the window. Can I get in trouble ?