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Level 1

Claiming Parent Who Receives Medicaid as Dependant

If I claim my parents as a dependant, can they still qualify for medicaid?

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Level 12

Claiming Parent Who Receives Medicaid as Dependant

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...


12 Replies
Level 1

Claiming Parent Who Receives Medicaid as Dependant

I live in California.  Thanks.
Level 20

Claiming Parent Who Receives Medicaid as Dependant

Level 1

Claiming Parent Who Receives Medicaid as Dependant

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.
Level 12

Claiming Parent Who Receives Medicaid as Dependant

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...


Level 1

Claiming Parent Who Receives Medicaid as Dependant

Any link to where this information is provided?  Greatly appreciated.  Thank you.
Level 12

Claiming Parent Who Receives Medicaid as Dependant

I edited my post above to include the pertinent information and the link to the law.
Level 1

Claiming Parent Who Receives Medicaid as Dependant

If you advise that the rule for parent is calculated under (f)(3) - note that the first sentence under (f)(3) says these are "Rules for individuals who neither file a tax return nor are claimed as a tax dependent." Isn't the question about individuals (parents) who are claimed as a tax dependent and whether it affects their medicaid elligibility? Could you clarify please.
Level 12

Claiming Parent Who Receives Medicaid as Dependant

It's confusing, but read the first two paragraphs in (f)(2).
It says that the household for dependents who are "Individuals other than a spouse or a biological, adopted, or step child" use the rules in (f)(3).
Level 1

Claiming Parent Who Receives Medicaid as Dependant

Thank you  so much for your clarification TaxGuyBill.  They really made it confusing putting the title for the section (f)(3) as "Rules for individuals who neither file a tax return nor are claimed as a tax dependent."  It would make any reader just skip the entire section if you are looking for rules for individuals claimed as a tax dependent. Then much further in the paragraph they include,  "or who are described in paragraph (f)(2)(i), (f)(2)(ii), or (f)(2)(iii) of this section."  Its only then as you pointed out that you realize that the section does make reference people who are claimed as a dependent in (f)(2)(i). Thank you again. Was it different before these new rules were promulgated under AFA (January 1, 2014)? Because I had always thought that once you claim your parent living with you then they become part of your household and many states' public assistance programs such as Medicaid use household income to determine elligibility.