Human Services Tax Deduction

Human Services Deduction
The human services deduction is intended to alleviate any individual income tax burden which might be imposed on Medicaid recipients who are living in a hospital, skilled nursing facility or an intermediate care facility. The goal of the human services tax deduction is to reduce the individual's adjusted gross income tax liability to zero (0).

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're eligible for the deduction, 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 for a deduction.

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