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.