Why is the American Taxpayer Relief Act of 2012 Important for Medicaid

The process of filing a Medicaid Application is labor intensive, confusing, and overwhelming.
However, by assisting applicants with this process, Goldberg Law Group helps clients avoid a
denial of benefits and obtain approval. Most of the time, the Medicaid caseworkers who
evaluate the submitted applications are knowledgeable and strive to award applicants their
warranted benefits. Nevertheless, the laws that affect Medicaid are always changing, and a
caseworker may not always be fully informed. Thankfully, Goldberg Law Group prides itself on
staying abreast of changes in the law. That is only one of the advantages of hiring our firm to
assist applicants in filing for Medicaid!

Sometimes, it is difficult to determine what laws are going to affect Medicaid applicants and
their eligibility. First, it is important to understand the income and asset requirements to
receive Medicaid benefits. In 2023, an applicant must have a gross income of $2,742 a month or
less. If their income is higher, our firm will prepare a Qualified Income Trust, where the amount
placed in the trust is not counted against them. Concerning assets, a single applicant must have
assets valued under $2,000 and a couple applying must have combined assets valued under
$3,000.

Now, what does the American Taxpayer Relief Act of 2012 have to do with Medicaid?

The applicable part of the act is Section 103, specifically subsection (d) under the heading
“Refunds Disregarded in the Administration of Federal Programs and Federally Assisted
Programs.” The paragraph states “Notwithstanding any other provision of law, any refund (or
advance payment with respect to a refundable credit) made to any individual under this title
shall not be taken into account as income, and shall not be taken into account as resources for
a period of 12 months from receipt, for purposes of determining the eligibility of such individual
(or any other individual) for benefits or assistance (or the amount or extent of benefits or
assistance) under any Federal program or under any State or local program financed in whole or
in part with Federal funds.”

In other words, if someone is applying for Medicaid and they receive an income tax refund, that
refund does not count against their asset limit as long as they spend it within a year. The refund
will also not count as income. The language of the act is important because it specifically states
that Medicaid caseworkers cannot deny eligibility for an applicant based on receiving a tax
refund if they have spent it within a year. This also applies when re-applying for Medicaid every
year after an applicant is initially accepted.

Making sure that our clients receive the Medicaid benefits they are entitled to is our primary
goal. Our team is devoted to understanding the rules and designing a plan that allows clients to
focus on their families and health instead of getting bogged down in the nitty-gritty of laws,
strategy, and documentation. Call us with any questions at 973-228-1795 or email us at
contactus@njelc.com.