Shortcut Navigation:

Question for the Money Doctors

Question submitted on Jun 18, 2014.

Question

Im a disabled mother of a 10 yr old child. My husband, his father, died 8 yrs ago. my son receives s.s. Death benefits because of this when i do my federal taxes Im told his benefits are not my income but when i go to apply for chip they tell.me it is concidered income and because of this it puts me in a different income bracket which makes me responsible for a heavy price increase for his health insurance. Where do i stand on this issue? thankyou for your time and consideration. gin Adams

Answer

I assume your son's income is less than $25,000 so none of the Social Security benefits should be taxable.

CHIP (Children's Health Insurance Program) or Children's Medicaid provides free or low-cost heath insurance.

For income tax purposes, the Social Security is not taxable.

For purposes of applying for CHIP, the benefits are considered income and should be included on the application. However, please be careful completing the application. Please contact your local CHIP office for help completing the application. You got some wrong information. Please ask for a supervisor or more knowledgeable employee.

Here is the website: http://chipmedicaid.or/en/Get-Help


For additional information visit http://www.360financialliteracy.org/