Human Services Deduction 605
The human services deduction is intended to eliminate any individual income tax imposed on Medicaid recipients who are living in a:
• Skilled nursing facility,
• Intermediate care facility,
• Licensed county home,
• Licensed boarding or residential home, or
• Certified Christian Science facility.*
The goal of the human services tax deduction is to reduce the affected individual’s adjusted gross income tax liability to zero (-0-).
*An eligible Christian Science facility must be listed with and certified by the Commission for Accreditation of Christian Science Nursing Organizations/Facilities, Inc.
Generally, the deduction should not be used in conjunction with most tax credits in order to create a refund. If you are a Medicaid recipient and live in one of the facilities listed above, to determine whether you are eligible for the deduction you must first prepare your tax return without claiming a human services deduction. Generally, if a refund is due, you are not eligible for a deduction. File your return without claiming the deduction and a refund will be issued. However, if an amount is due, you are eligible to use a deduction.
Enter code 605 on Schedule 2 if claiming this deduction.