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anonymous1005252 Asked January 2020

I am retired receiving $1618 per month. My daughter in law and granddaughter live with me. If I claim them will it mess up their benefits?

They are on Medicaid for health benefits and have no income. If I claim them on my taxes will it mess up their benefits? We live in Arkansas.

TNtechie Jan 2020
If you were under 65 years old in 2019 or your GD is disabled, you may qualify for EITC, please use the EITC Assistant provided by the IRS to determine your eligibility.

worriedinCali Jan 2020
If SS is your only source of income, then you don’t qualify for the EITC. If SS isn’t your source of income then your income is also too high to receive the EITC for yourself. If your grandchild is a minor, you would only qualify if your only income is NOT social security and she’s not already being claimed by her other parent.

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TNtechie Jan 2020
In my state Medicaid is based on personal income and not household income, so filing as head of household on federal income taxes and claiming both DIL and GD would not impact their Medicaid status. Your SS is below the income level for federal income tax; however if you can qualify for the earned income tax credit and receive a "refund" of several hundred to a few thousand dollars. Below is a link to see if you would qualify.

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

IF you would qualify for the earned income tax credit, I would next check with your state's Medicaid office to confirm Medicaid is based on _personal_ and not household income.

TN doesn't have state income taxes so I have no idea if head of household status would help you with state income taxes.

worriedinCali Jan 2020
If your only income is social security, you don’t have to file taxes, your income isn’t high enough to be taxable so filing a return won’t benefit you financially. You won’t get a tax refund.
needtowashhair Jan 2020
It's always a good idea to file a return regardless of whether you will get a refund or not. It starts the clock on the statute of limitations. Otherwise the IRS or your state can question your taxes forever. As in forever. Some people have had gotten substitute returns filed on them from 40 years ago.
needtowashhair Jan 2020
I would not claim them. For medicaid, it's best to keep households separate. For the most part, who's on your tax return is what determines who's in your household.

Why would you even want to claim them on your taxes? If you are on SS, I don't see how that would help you or them.

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