Claiming Parent Who Receives Medicaid as Dependant

[AnnDD]

Question Can I claim my 3 year old granddaughter who is receiving Medicaid and food stamps in Illinois along with her mother? Her mother doesn't qualify for the child tax credit. They live with me most of the year. Would this affect their medicaid and food stamps?

[MarilynG1]

@AnnDD  Your daughter could contact her Medicaid/Food Stamps caseworker to verify if you claiming them will affect their eligibility. 

Since Illinois has expanded Medicaid coverage, and if she is over 19, she is qualified on her income only.

Click this link for more info Claiming Dependents on Medicare/Food Stamps.

This link gives info on Claiming a Dependent. 

[drhellga]

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! 

[BillM223]

"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

[GC25]

How about in California? Can I claim my parents as dependent? They do not have income and they are on medicare. If I claim them are they going to lose their Medicare? 

Thanks 

[DoninGA]

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@GC25 wrote:

How about in California? Can I claim my parents as dependent? They do not have income and they are on medicare. If I claim them are they going to lose their Medicare? 

Thanks 

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Claiming someone as a dependent has no effect whatsoever on their Medicare benefits provided by the US Government.

[AndrewG25]

The Medi-Cal application states "If you are claimed as a dependent on someone else's tax return, you must include all members of the tax filing household that claimed you and any family members living with you." This is contrary to the top answer here. Can someone clarify why the answer was "YES, you can claim them as a dependent and your income will not be included to determine their Medicaid eligibility." when the application is going to consider the son's income when the dependent parent applies?

[AndrewG25]

The Medi-Cal application states "If you are claimed as a dependent on someone else's tax return, you must include all members of the tax filing household that claimed you and any family members living with you." This is contrary to the top answer here. Can someone clarify why the answer was "YES, you can claim them as a dependent and your income will not be included to determine their Medicaid eligibility." when the application is going to consider the son's income when the dependent parent applies?

[SweetieJean]

Medicare and Medicaid are different.  Medicaid (and food stamps, housing assistance, etc.) can be income and/or asset based, depending upon the state. The fact that you provide support to someone could impact that, whether you actually claim them as a tax dependent or not.  Thus, you need to check with Medicaid.

[AndrewG25]

I checked with Medicaid AKA Medi-Cal in California. They told me that my income does count contrary to what the solution to this post said. However, I don't think the person I spoke with at the county was aware of this exception, I spoke with three different people though and they all said the same thing. I don't think they were aware of the exception of child claiming parent as dependent though. Here is a chart I found: https://www.dhcs.ca.gov/services/medi-cal/eligibility/Documents/Co-OPS-Sup/MAGIHouseholdSizeFlowChar...

This states that 'Someone other than the spouse or child' would be considered non-filer and does not count in the household size, however the Medi-Cal application asks to list the person that claimed the applicant. That flow chart is pretty much an easier to read version of https://www.law.cornell.edu/cfr/text/42/435.603#f_3_iv which the solution of this post was referring to. 

Problem is everyone I speak with at the county's health & human services agency tell me something different. 

[Gilshifrin]

My adult daughter is disabled and I will file for her as a dependent in 2021. If next year (2022) she files for Medicaid and I do not file her as a dependent for 2022 is there any ramifications to her qualifying for Medicaid in 2022.