How Do You File a 1040 When SSI and Retirement Benefits Are Paid to Medicaid?


Quick Answer

If Social Security payments and retirement benefits are paid to Medicaid, an individual does not need to report that as income on his 1040. If Medicaid pays for an individual to receive nursing home or home health care services, he is required to claim his Social Security payments and retirement income on his taxes, explains NOLO.

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Full Answer

The Social Security Administration mails Social Security recipients a form SSA-1099 in January of each year, according to its official website. If an individual receives one of these forms, he can determine which figures are needed on the 1040 form by completing the Social Security benefits worksheet found in the instruction sheet for the 1040 form.

SSI stands for Supplemental Security Income, and it is not the same as Social Security payments. SSI is an income supplement program funded by taxes, while the other is funded by Social Security taxes, states SSA.

The SSI program provides cash assistance to individuals who cannot work due to disabilities and who have minimal assets. In most states, SSI recipients qualify for Medicaid, but in other states, the criteria for obtaining SSI does not automatically qualify an individual for Medicaid, reports Medicaid.gov. SSI payments are paid to individuals, not to Medicaid.

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