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.
(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.(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.
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.
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>
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.
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.
(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.(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.
Any link to where this information is provided? Greatly appreciated. Thank you.
I edited my post above to include the pertinent information and the link to the law.
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.
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).
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.
Hi, I'm in the same situation where I fully support my parents and have been claiming them as dependents in previous years--but they live in Texas which is a state that did not accept the Medicaid expansion, so affordable health insurance was not available to them. I live in NJ, a different state. Can anyone comment on how this would change things? Also, if I claim them then would I have to pay the ACA penalty for them not having insurance?
You would need to contact your state Medicaid agency to get the answer.
Question can I claim my disabled daughter who is 23 and receiving Medicaid in Illinois
Yes, you can claim your disabled daughter as your dependent and not affect her Medicaid eligibility. Since Illinois has expanded Medicaid coverage, and she is over 19, she is qualified on her income only.
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
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.
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
I gave a long answer on your other thread. I suggest you call You can call the DHS help Line at (800) 843-6154.
I'm in a situation similar to a number of others who have posted in this topic. My son is 26 years old. He lived at home and didn't have a job or income last year. My health insurance plan covered him until he aged out of it in November. He applied for a subsidized 2020 health plan through Healthcare.gov in December, but he was kicked over to Medicaid because he had no income last year. He was enrolled in Medicaid effective December 1, 2019.
We supported him last year and planned to claim him as a dependent for 2019. However, I want to make sure this doesn't mess up his ability to keep his health coverage in 2020. We live in Virginia, which is a state that expanded Medicaid. I've called the local Medicaid office and talked to a case worker. She asked coworkers but none seem to know if it will or won't affect his eligibility. The advice was "probably not" and "talk to a tax expert". On this board two employee tax experts gave what appear to be opposite answers within a short period of time. Is there a definitive answer to whether or not claiming someone as a dependent affects their Medicaid eligibility in states that have expanded Medicaid?
I am forwarding some information that may be of help to you.
Electronic Code of Federal Regulations
Title 42: Public Health
PART 435—ELIGIBILITY IN THE STATES, DISTRICT OF COLUMBIA, THE NORTHERN MARIANA ISLANDS, AND AMERICAN SAMOA
Subpart G—General Financial Eligibility Requirements and Options
I would think that your state Medicaid agency would be able to answer your question.
For what it's worth, I talked to a representative on the Cover VA (Virginia) help line concerning Medicaid coverage for adult dependents. Her understanding was that when someone is claimed as a tax dependent, the income of the tax filer is used to determine eligibility for Medicaid. She also said that the Medicaid case worker had the final say. I previously talked to the case worker who told me she didn't know whether or not the filer's income was to be used to determine eligibility.
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?
@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.
Concerning Virginia Medicaid, I talked to a senior policy analyst in the Virginia Department of Medical Assistance Services. He said, "If you choose to include your child as a tax dependent, it will change his/her tax filing status. They would now be known as your tax dependent, and we would need to include all of the parent's income" in the determination of eligibility for Medicaid.