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/
"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."
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.
4 Answers
Helpful Newest
First Oldest
First
ADVERTISEMENT
"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
Second, verify what your assets limit is and what your spend down timeline is.