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Do I need to report my federal tax return to Medicaid?

Ogden, UT |

I am on Medicaid for Prenatal care and received a large tax return. Does this count as reportable income? How might this change my coverage? And I am already 2 months late of reporting it, but feeling like I don't want it to come back and "bite me" and get in trouble.

Attorney Answers 3


  1. It is likely the answer is found in whether or not Medicaid payment for care constitutes 'Income' for purposes of reporting on the Federal Income Tax Return. I'd recommend you have a Certified Public Accountant ('CPA') review your most recent return and a copy of your Medicaid payments. That way you can determine the answer to your inquiry directly. Good Luck!


  2. I don't think you mean "large tax return". A tax return is the paper that you file with the government. you couldn't have had that much income or you wouldn't have received medicaid. That being said, I interpret your question to mean you received a tax "refund". The government is aware of your IRS and State and local taxes. Medicaid can find out how much income you reported for the last year and how much was refunded. A tax refund, if properly calculated and based on properly submitted forms is not income. It means that too much was withheld by your employer and it is from the last year's wages. i hope I am understanding your question. If so, you have nothing to worry about.

    This answer is not intended to be legal advice in a lawyer/client relationship. Misunderstanding of the answer or use of the answer for any illegal purpose is not the responsibility of the writer. The answer to any question in the Avvo website is constrained by the limited content of the question, an incomplete description of the facts underlying the question or a wrongful motivation for the question.


  3. While a tax refund isn't income, it can cause you to exceed Medicaid resource limits. You need advice from a local elder law attorney.

    Lawrence Friedman, Bridgewater, NJ. Certified as an Elder Law Attorney by the ABA approved National Elder Law Foundation, former Chair NJ State Bar Association Elder and Disabilities Law Section, Member Board of Consultors of NJSBA Real Property, Trusts & Estates Law Section, Vice Chair Special Needs Law Section of National Academy of Elder Law Attorneys, and Master of Laws (LL.M.) in Taxation from N.Y.U. School of Law. Visit SpecialNeedsNJ.com for articles and Q&A on elder law, special needs, wills, trusts, estates, and tax. Visit SpecialNeedsNJ.com/blog and subscribe for free timely updates to be delivered to your inbox. Information on both Avvo and SpecialNeedsNJ.com does not constitute legal advice, as it is general in nature and may not apply to your situation or be subject to important changes. No attorney client relationship exists unless set forth in written engagement terms.

    Lawrence Friedman, Bridgewater, NJ. Certified as an Elder Law Attorney by the ABA approved National Elder Law Foundation, former Chair NJ State Bar Association Elder and Disabilities Law Section, Member Board of Consultors of NJSBA Real Property, Trusts & Estates Law Section, Vice Chair Special Needs Law Section of National Academy of Elder Law Attorneys, and Master of Laws (LL.M.) in Taxation from N.Y.U. School of Law. Visit SpecialNeedsNJ.com for articles and Q&A on elder law, special needs, wills, trusts, estates, and tax. Visit SpecialNeedsNJ.com/blog and subscribe for free timely updates to be delivered to your inbox. Information on both Avvo and SpecialNeedsNJ.com does not constitute legal advice, as it is general in nature and may not apply to your situation or be subject to important changes. No attorney client relationship exists unless set forth in written engagement terms.

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