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Will Medicaid take our tax refund?

My husband is in a nursing home using Medicaid funds, he only used Medicaid for 8 months of 2015. When I file our 2015 taxes will Medicaid take any refund we might get?
Status: Open    Mar 02, 2016 - 08:23 PM

Medicare/Medicaid, Finance

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Mar 08, 2016 - 09:52 AM

Medicaid will take your refund in the sense that typically you need to keep assets, like a bank account, at a certain level. Typically that is $1500. So if the refund puts you over that amount you will need to spend down.
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By gadresang on Mar 17, 2017 - 06:18 PM | Like (0)  |  Report

So if a Medicaid recipient in Wisconsin gets a tax refund that puts him over the $2000 maximum asset limit, what do they do with the refund? Should they have a separate checking/savings account for it? May they use that money for 12 months for clothing, etc. and not be penalized for being over the $2000 limit?

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Mar 08, 2016 - 12:30 PM

Generally, Medicaid will only take your tax refund if you received credit for income tax withholding for the same period.
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By jpayne on Aug 13, 2016 - 05:51 PM | Like (0)  |  Report

Federal law exempts federal income tax refunds from being counted as either income or asset for twelve months after receipt. Furthermore, those funds may be given away with no penalty.

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Aug 13, 2016 - 06:02 PM

"Tax refunds and advance payments are not counted as an available resource for a period of 12 months following the month of receipt of the payment. This means that during the time a payment is exempt from being counted as a resource to the individual, it also is not countable as a resource to anyone else. Under Medicaid, this also applies in 209(b) States. However, if any portion of the payment is still retained by the individual after the 12-month period expires, that portion then becomes a countable resource for both Medicaid and CHIP."

This means that federal tax refunds are not counted for 12 months after receipt.

Source: Center for Medicaid, CHIP and Survey & Certification Informational Bulletin

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