If you claim your mother as a dependent on your tax return, it won’t affect her Medicaid eligibility in future years. But you may run into problems claiming her as a dependent in the same year as she’s receiving Medicaid benefits. If the dollar value of Medicaid services exceeds half of your parent’s support, you can’t claim her as a dependent. Medicaid eligibility requirements are different from state to state, so you’ll want to talk to your state’s department of Human Services about it.
As Jon Beyrer indicated above, the mere claiming of a parent as a tax deduction will have no effect on the parent's eligibility for Medicaid or Medicare.
When a person applies for Medicaid, the state will tally up all of that person's assets and income, and if they are below a certain amount, then the individual may qualify for Medicaid. So if the child is paying ongoing expenses of the parent, such payments are being used up every month and won't accumulate to cause the parent to be disqualified from Medicaid.
Medicare, on the other hand, does not look at one's financial situation at all. Generally, you are eligible for Medicare if you or your spouse worked for at least 10 years in Medicare-covered employment and you are 65 years or older and a citizen or permanent resident of the United States.
My sister lives in a nursing home, paid for by Medicaid. I am her curator and pay for everything else she may need - whether it be clothes, personal items, property upkeep, property taxes. 1) Can I claim her as a dependent 2) How do I transfer her house title to my name (she cannot speak, or write). Its not worth much but right now it is a financial drain on me. I would like to sell it and use the proceeds to take care of her needs instead of it coming out of my income. I understand if I sell it in her name, the proceeds may go to the state?
In TEXAS: My grandmother is in a nursing home on Medicaid and was not required to sell her house. House is empty now. When she dies, will proceeds of house go to heirs or Medicaid?
In PA, Medicaid will send a bill requesting repayment from the proceeds of the sale of house. That repayment amount is calculated using a formula depending upon how long the person was in the facility.
me and my 10 year old son have lived with my sister for a year. I provide our food and pay for all of my son's expenses like clothes, after school care etc. My sister thinks she should claim my son on her taxes since she has provided shelter. Does she have the right to do so? I believe I should claim him. What do you suggest?
emmai67, the way your profile reads along with your statement above, I'm led to believe that you are living with your daughter while taking care of your mother? Is that what you mean?
Taxes were due yesterday. Has your daughter not filed her taxes yet? To claim you as her dependent on her taxes would need to meet certain IRS criteria.
You should consult an attorney, as in my state you cannot transfer assets, as they may disqualify your sister for Medicaid. I think they will "look back" five years to make sure no transfers were made prior to applying for Medicaid. In my state, they will allow you to prepay a funeral, but the individual cannot qualify for Medicaid until they "spend down" their assets to a certain level. I am an estate administration paralegal (retired), and in my opinion, all of these questions are "lawyer territory."
When a person applies for Medicaid, the state will tally up all of that person's assets and income, and if they are below a certain amount, then the individual may qualify for Medicaid. So if the child is paying ongoing expenses of the parent, such payments are being used up every month and won't accumulate to cause the parent to be disqualified from Medicaid.
Medicare, on the other hand, does not look at one's financial situation at all. Generally, you are eligible for Medicare if you or your spouse worked for at least 10 years in Medicare-covered employment and you are 65 years or older and a citizen or permanent resident of the United States.
Check out this article for your question claiming parents on your taxes.
Tax Tips for Caregivers: Claiming a Parent as a Dependent
https://www.agingcare.com/articles/Tax-Tips-for-Caregivers-Can-I-Claim-My-Elderly-Parent-as-a-Dependent-109238.htm
Hope this answers your question!
Taxes were due yesterday. Has your daughter not filed her taxes yet? To claim you as her dependent on her taxes would need to meet certain IRS criteria.
See All Answers