Dependents For W-4 & Income Return

[cjsm12]

Ohio.

Hey guys so I have a girlfriend and a child with said girlfriend who live with me. I claimed both of them as dependents on my employer w-4 and claiming myself as head of household. I have a few questions however regarding the tax refund form as well as her current insurance which she has for herself and our daughter, which is medicaid. Do I have to claim both of them on my income tax return the same way I did with my employer w-4? Do these have to match up because I read somewhere that it didn't? Only reason I ask is my girlfriend would like to keep her medicaid for herself and the baby... and if I claim them as dependents on my tax return, my income will then have to be included in her household size for medicaid determination as thus far it hasn't been needed since we aren't married and she can go off her income, which is 0 since she doesn't work. So for her to keep her insurance for herself and the baby should I just not include them as dependents on my tax return? Thus allowing her to file her own tax return that she can use for income proof for medicaid? Or am I screwed as I already claimed them on my w-4, meaning I must also claim them on my income return? Confused on how all of this works and any advice would be greatly appreciated.

 

[FlyingRon]

The W-4 doesn't have "people" on it. It only has a number of claimed dependents that are used to estimate the amount of tax that needs to be held.

Further, starting this year (Tax year 2018), there are NO personal exemptions, so unless you're doing something like claiming certain tax credits, the number of exemptions doesn't really fit into the calculation. At the end of the year, if you don't have enough withheld because you over declared your exemptions, you end up owing the taxman money. If you declared too little, your refund goes up. In the past, if you declared people also declared as others, the IRS would send you both a letter asking you to figure out who was right.

Household income for medicaid purposes isn't determined by apportionment on tax forms. If you are living in the same household (even if filing separate returrns). Your income is counted as household income if you're living with her even if you are not related and are filing your own returns.

 

[LdiJ]

The W-4 doesn't have "people" on it. It only has a number of claimed dependents that are used to estimate the amount of tax that needs to be held.

Further, starting this year (Tax year 2018), there are NO personal exemptions, so unless you're doing something like claiming certain tax credits, the number of exemptions doesn't really fit into the calculation. At the end of the year, if you don't have enough withheld because you over declared your exemptions, you end up owing the taxman money. If you declared too little, your refund goes up. In the past, if you declared people also declared as others, the IRS would send you both a letter asking you to figure out who was right.

Household income for medicaid purposes isn't determined by apportionment on tax forms. If you are living in the same household (even if filing separate returrns). Your income is counted as household income if you're living with her even if you are not related and are filing your own returns.

You might want to review the new W4. They call them allowances now instead of exemptions and the instructions are similar to the old instructions. With the doubled child tax credit and the 500.00 credit for all other dependents each dependent is worth something on the tax return.

 

[FlyingRon]

Yes, that is true, and I mentioned the tax credit issue in passing, but it was only tangental to the question of medicaid eligibility that seemed to be the core of the question.

 

[LdiJ]

Ohio.

Hey guys so I have a girlfriend and a child with said girlfriend who live with me. I claimed both of them as dependents on my employer w-4 and claiming myself as head of household. I have a few questions however regarding the tax refund form as well as her current insurance which she has for herself and our daughter, which is medicaid. Do I have to claim both of them on my income tax return the same way I did with my employer w-4? Do these have to match up because I read somewhere that it didn't? Only reason I ask is my girlfriend would like to keep her medicaid for herself and the baby... and if I claim them as dependents on my tax return, my income will then have to be included in her household size for medicaid determination as thus far it hasn't been needed since we aren't married and she can go off her income, which is 0 since she doesn't work. So for her to keep her insurance for herself and the baby should I just not include them as dependents on my tax return? Thus allowing her to file her own tax return that she can use for income proof for medicaid? Or am I screwed as I already claimed them on my w-4, meaning I must also claim them on my income return? Confused on how all of this works and any advice would be greatly appreciated.

It is not required for your W4 and tax return to match. However, if you do not claim them you will lose the head of household status and without the child tax credit and the other credit you may very well owe tax, and possibly somewhat substantial tax. Your withholding will not be adequate if you do not claim them.

If your girlfriend didn't claim your income on her Medicaid application then she has committed Medicaid fraud and that's a problem all around already. She cannot continue to not claim your income, legally, whether you are married or not.

 

[Ohiogal]

Ohio.

Hey guys so I have a girlfriend and a child with said girlfriend who live with me. I claimed both of them as dependents on my employer w-4 and claiming myself as head of household. I have a few questions however regarding the tax refund form as well as her current insurance which she has for herself and our daughter, which is medicaid. Do I have to claim both of them on my income tax return the same way I did with my employer w-4? Do these have to match up because I read somewhere that it didn't? Only reason I ask is my girlfriend would like to keep her medicaid for herself and the baby... and if I claim them as dependents on my tax return, my income will then have to be included in her household size for medicaid determination as thus far it hasn't been needed since we aren't married and she can go off her income, which is 0 since she doesn't work. So for her to keep her insurance for herself and the baby should I just not include them as dependents on my tax return? Thus allowing her to file her own tax return that she can use for income proof for medicaid? Or am I screwed as I already claimed them on my w-4, meaning I must also claim them on my income return? Confused on how all of this works and any advice would be greatly appreciated.

If they are living with you, then she is committing Medicaid fraud by not including your income. Because you share the same household. She is NOT in a different household.