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Zachary J. Hesselbaum

Zachary Hesselbaum’s Answers

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  • Is a Federal Income Tax refund considered income according to Medicaid rules?

    My mother lives in Chicago, Illinois and is going through the yearly redetermination process for Medicaid benefits. She received a federal income tax refund of $2,278 and is now over the Medicaid allowable income limit of $2, 000. Is she able to e...

    Zachary’s Answer

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    Federal Tax Returns are exempt. State of Illinois Tax Returns are not exempt. See the following citation from the Policy Manual/ Workers Action Guide under current rules as of 6/6/2012:

    Federal Tax Refunds

    If assets cause ineligibility, ask the unit if they received a Federal tax refund in the last 12 months and what amount they received. There is no need to verify the federal refund. If they did receive a Federal tax refund, subtract the Federal tax refund from the total amount of assets. If the difference between the resources and the amount of the Federal tax refund is less than the resource limit, the unit remains eligible.

    Example 1: On February 21, Ms. A applies for AABD for herself. On the application Ms. A reports a savings account with $3400. At the interview, the worker asks Ms. A if she received a Federal tax refund in the last 12 months and she reports that she received a $1510 refund.
    The worker subtracts the $1510 from the total assets of $3400 and is left with a balance of $1890. $1890 is below the AABD asset limit of $2000 for one person so Ms. A is eligible for AABD.

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