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A friend’s elderly Mom lives with her. She has no assets. Friend claims her Mom as a dependent for IRS/tax purposes. Will this affect Mom’s ability to obtain Institutional Medicaid if LTC/SNF is needed?

Edit: Obtain a certified public *accountant.*
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Reply to Llamalover47
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LADeGo: Perhaps your friend should pose her query to a certified public acccountant.
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Reply to Llamalover47
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Thank you everyone for the responses. Will pass them to my friend
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Reply to LADeGo
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I think this is a question for an accountant because I’m not sure how Medicaid will look at it, I do think there was a question on the application about whether or not Mom was a dependent but that also may vary state to state. I assumed when you claim someone as a dependent it means you are supporting them financially and when a person applies for and collects Medicaid it’s because they can’t support themselves and aren’t being supported financially so it’s one or the other. That said I’m well aware that in reality State support and Medicaid don’t cut it when it comes to support and when they live with you or vise versa you end up absorbing a lot of expense so it seems legit one shouldn’t affect the other as long as your in the same dwelling. Also Medicaid is medical support over and above Medicare so basically the supplemental and medical insurance doesn’t affect your ability to claim a dependent so maybe as long as the patient isn’t collecting other state assistance like food and shelter? Again it’s a question for an accountant in your state I think.
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Reply to Lymie61
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Medicaid is based on the Moms assets. If all she has is SS and maybe a pension and she is under the income cap, she should be OK. My Mom did not even file taxes way before she started on Medicaid. I don't see where claiming her as a dependent hhas anything to do with her. But like said, once she is in a NH on Medicaid, she cannot be claimed anymore.
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Reply to JoAnn29
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No it will not effect Medicaid eligibility but your friend should not claim her mom as a dependent once she enters the NH
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Reply to mstrbill
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Medicaid for LTC has a higher dollar value than claiming a tax dependent.
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Reply to Becky04469
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I can't answer your question specifically but can opine that unless your friend can afford to pay for a lot of caregiving help or the cost of a facility for her Mom (eventually, and maybe sooner rather than later), I'm not sure the dependency tax benefit is more of a financial advantage. Highly doubtful.

Whether or not it will impact her ability to qualify for her state's Medicaid program is a questiion for a Medicaid Planner or certified elder law attorney for her specific state (and all the other information about your friend's financial and tax situation as well).
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Reply to Geaton777
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