What is the Human Services Tax Deduction?
The Human Services Deduction is intended to alleviate any individual income tax burden that might be imposed on Medicaid recipients who are living in one of the following:
- Skilled nursing facility
- Intermediate care facility
- Licensed county home
- Licensed boarding
- Residential home
- Certified Christian Science facility*
*An eligible Christian Science facility must be listed with and certified by the Commission for Accreditation of Christian Science Nursing Organizations/Facilities, Inc.
The goal of the human services deduction is to reduce the affected individual's adjusted gross income tax liability to zero.
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, you must first prepare your tax return without claiming a Human Services Deduction. Generally, if a refund is due, you are not eligible for this 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.