If I claim someone as dependent, do they have file taxes claiming such? how is their medicaid affected if I claim them as a dependent?

[TaxGuyBill]

If he lives in a State that has fully 'expanded' Medicaid (see link) and he is age 19 or older (age 21 or older if he is a full-time student), claiming him as a tax dependent will NOT affect his eligibility.
<a rel="nofollow" target="_blank" href="http://www.kff.org/health-reform/state-indicator/state-activity-around-expanding-medicaid-under-the-...>

If he is younger than that, then does he live with you or his parents?  How old are you?

If he does not live in a State that has fully 'expanded' Medicaid, the rules vary from State to State, so he needs to contact his local Medicaid office.

[nesto000]

Thanks Bill. We live in California and our states has fully expanded Medicaid. Would he have to file an amendment if he didn't select that he could be claimed as a dependent on his taxes? His older than 21.

[TaxGuyBill]

Yes, if he filed a tax return (with $0 of income, he may not have filed) and did not indicate he could be claimed as a dependent, he would need to file an amendment.

If you have not yet filed your own tax return, you will need to file by mail (your e-file will be rejected due to your brother claiming himself).  If you have already filed your own tax return and want to amend it, amended returns always need to be mailed anyways.

[nesto000]

We both filed our taxes earlier in the year.

[fatherof13]

FSA Versus Hsa

[Carl]

If you are claiming them as your dependent (that is key to my numbers here) and they have reportable income in excess of $6300 in the tax year, then they are required to file a tax return. In TurboTax under the Personal Info tab when filling in their personal information, they must select the box for "I can be claimed on someone else's return". If they don't check this box, then you can't claim them as your dependent. If you have already claimed them as your dependent and your e-file has been accepted by the IRS, then their e-file will be rejected by the IRS if they do NOT select the option for "I can be claimed on someone else's return".

If the dependent has less than $6300 of reportable income then while they're not required to file a tax return, if any taxes were withheld from their pay, then they should file a tax return anyway, so as to get those withheld taxes refunded to them.

If the dependent has more than $1050 of "UN"earned income (such as interest, dividends, etc.) then a tax return has to be filed. More detailed information on this can be found at https://www.irs.gov/publications/p17/ch01.html#en_US_2016_publink1000170388

[nesto000]

Thanks Carl, the person would be my brother and he made zero income. I'm trying to decide if I file an amendment but don't want to impact his medicaid coverage.

[Carl]

Take note that if he qualifies as your dependent, when it comes to his health insurance it's not asking if "YOU" Provided health insurance for him. You're being asked if "HE HAD" the insurance. Who provided it doesn't matter.

[nesto000]

It's starting to get a bit clearer. If we both file amendments to our 2016 taxes, we just don't want to get hit by medicaid penalties if that is even possible or maybe we are just over thinking it.

[Carl]

Can't speak for Medicaid, but when it comes to the congressionally mandated health care, if they person's insurance cost is subsidized, I don't know if that means you claiming them as a dependent would create a requirment to repay at least some of the subsidized cost. You might want to check into this with a healthcare insurance provider to get the facts on this.

[nesto000]

Yes, we plan to double check with the powers that be before moving forward. Thanks again!