[USER]

Currently married making 400k a year. My wife is a stay at home mom and takes care of our newborn.

Anyone know if she can apply for state Medicaid along with our newborn by filing separately with zero income?

Are we allowed to file separately? Anyone know the math to this to see if the additional tax I would pay is worth having her get Medicaid?

Current insurance monthly premium is about 500$ per person.

[Karri]

Have some pride and you make more than enough to pay your families insurance.

[Monica]

Medicaid goes by household income, not personal income.
Also, this is really cringey and I hope you’re not serious.

[Jule]

Why would you want your child and wife to be under government aid when you make a good living? That’s why you work, to provide the best care possible for your family.

[Katie]

Have you lost your mind? Medicaid is for families barely scraping by-not for people making 400K a year.

Be grateful you make enough to easily pay for your wife to) not work 2) pay her insurance premiums.

[Amanda]

No she won’t be able to qualify for Medicaid. They look at HOUSEHOLD income doesn’t matter if you file
Separately.

Side note, as someone who spendt her entire career in public interest for low income

Individuals it’s shameful to try to take resources for a program meant for the poor

[Alicia]

I’m all for taking advantage of all things that you qualify for, and saving money where you can, however leave Medicaid and government benefits for those who have no other options.

[Malik]

Have her file for divorce, then you pay her alimony and child support, then she files for Medicaid.

She still won’t get it, but this seems like a good choice here

[Mark]

Jeff Bezos filed for a child tax credit in 2011 when he was “only” worth $18 billion.

The tax credits are designed to help low income individuals and are income based. He has very low “income”.

And Medicaid also has some severely low asset limits.
And by the by the way.

Changing your tax filing status from married filing jointly to filing separately would not make your wife and child eligible for Medicaid, so even if your question is taken seriously, the answer is that your wife is not and will not be eligible.

[Katy]

You can absolutely apply – but you will be denied due to being over income. Being married and having a child together makes you 1 household for income eligibility

[Leslie]

You’re worried about $12k? What do you do with the other $300k you have lying around?

[Damian]

In general, Medicaid eligibility is based on household income rather than individual income. Even if you and your wife file taxes separately, Medicaid will likely consider your combined household income, which in your case would probably exceed the eligibility threshold for Medicaid.

Most states use the Modified Adjusted Gross Income (MAGI) to determine Medicaid eligibility, and your income would likely place your family well above the threshold.

However, let’s break down the tax implications of filing separately:

1. Filing Separately Impact:
Higher Tax Bracket: Filing separately often results in being placed in a higher tax bracket compared to filing jointly, which could lead to a higher tax burden.

For example, as of 2023, the tax brackets for married couples filing separately cap at lower income levels, so a higher portion of your income would be taxed at higher rates.

Loss of Certain Deductions: Filing separately also limits or disqualifies you from claiming certain credits and deductions that would otherwise be available if you filed jointly, such as the Earned Income Tax Credit (EITC) or education credits.

2. Medicaid Eligibility:
Medicaid is typically based on household income, not just one spouse’s income.

Even if you file separately and your wife claims zero income, the state will likely include your income in determining Medicaid eligibility.

Since your household income is $400k, it would almost certainly disqualify your wife and newborn from Medicaid.

CHIP (Children’s Health Insurance Program): In some states, even higher-income families might be eligible for CHIP (which is separate from Medicaid but provides coverage for children).

3. Math Breakdown:
Current Premiums: At $500 per person, for two people (wife and newborn), you’re paying about $1,000/month, or $12,000/year.

Tax Costs of Filing Separately: Filing separately would likely cost significantly more than $12,000 in additional taxes, given the higher tax rates and loss of deductions/credits.

Conclusion:
Even if filing separately, Medicaid will likely count your total household income, which would likely disqualify your wife and newborn.

The higher taxes and potential loss of deductions from filing separately would also likely outweigh the $12,000 in annual insurance premiums.

It’s probably better to stick with your current insurance, but you could explore other insurance options, such as Affordable Care Act (ACA) marketplace plans, which may offer different coverage at a potentially lower cost.

[Holly]

I couldn’t even qualify for Medicaid when I was pregnant and my husband and I were bringing home less than $4500 a month. Are we for real right now?

[Princess]

I know mamy people who do it. But you make enough to pay it, so why dont you? Medicaid makes ppl jump through hoops for everything and drop you with no notice given

[Author]

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