Page 15 - Florida Long-Term Care Medicaid Post Approval Client Guide

Family First Firm • Florida Medicaid Post-Approval Guide

12. Taxes

General Tax Information

Being on Medicaid does not eliminate your obligation to file taxes or change the fundamental
tax rules that apply to you. However, there are some considerations for Medicaid recipients.

Medicaid Benefits and Taxes
Medicaid benefits themselves are generally not taxable income.
Your regular income (Social Security, pensions, etc.) remains taxable according to normal

rules.
Medical expenses paid out of pocket may be deductible if they exceed applicable
5
thresholds. At the time of writing, any medical expenses that exceed 7.5% of your adjusted
gross income (AGI) are deductible.

QIT and Taxes
The Qualified Income Trust (QIT) is a "grantor trust" for tax purposes. This means the income that
flows through the QIT is still reported on the Medicaid recipient’s personal tax return. The QIT

itself does not file a separate tax return, and it should use the Medicaid recipient’s Social
Security Number (not a separate EIN).

Refer to CPAs for Specific Guidance

Family First Firm provides legal services related to Medicaid planning, but we do not provide tax
advice. For specific questions about your tax situation, including questions about:
Tax filing requirements,

Deductibility of medical expenses,
Tax implications of asset transfers,
Estate tax considerations, or
Any other tax matters.

Please consult with a qualified Certified Public Accountant (CPA) or tax professional. If
you need a recommendation, we would be happy to provide one.

Page 15 of 18 5 As of 2026