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NoFemur58 Asked January 2023

I am concerned about my tax refund kicking me out of Medicaid. Any insights?

I was unemployed half of 2022 and am concerned my tax return will kick me out of medicaid. Is there any way to prevent this? Thank you.

JoAnn29 Jan 2023
Did u collect unemployment. Did u have taxes taken out. If not, you owe them so may not get a refund.

newbiewife Jan 2023
Are you going to owe taxes for this year (2023)? If so, you can request that the refund for 2022 taxes be applied to 2023 taxes. Tax refunds are not considered as income in the month received, so would not put you over the allowable Medicaid monthly income cap. The refund will, however, be part of your assets, but you have a year to spend down to the asset cap allowed by your state. https://www.medicaidplanningassistance.org/question/tax-refund-disqualify-medicaid-beneficiary/

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Geaton777 Jan 2023
It has to be considered income by the government.

"A federal tax refund is not entered on a federal tax return so it is not income. A state tax refund can be considered income on a federal tax return if you itemized deductions in the year of the tax refund."

Source: https://ttlc.intuit.com/community/taxes/discussion/does-a-tax-refund-count-as-income/00/793015

Frebrowser Jan 2023
First, prepare a draft of your taxes ASAP so you have a good idea of what your refund will be before the end of January, then you have a few months before you are required to file and the refund is issued. If you file an extension you can refer the refund even longer.

Second, verify what your assets limit is and what your spend down timeline is.

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