1) Counting Income of Children
The customer lives with her daughter, age 17, and granddaughter, age 1.
The customer is a tax filer and claims her daughter and granddaughter as dependents. The customer earns $2,200 per month. Her daughter earns $300 per month. The daughter’s income is expected to be too low to have to file a tax return.
The customer’s budget group = Self, daughter, and granddaughter. The daughter’s income is below the tax filing threshold, she is the customer’s child, and they are both in the budget group. Since all three conditions are met, the daughter’s income is not counted in the customer’s budget. Total monthly income counted is $2,200 (the customer’s monthly income).
The daughter’s budget group = The customer, self, and granddaughter. The daughter’s income is below the tax filing threshold, she is the customer’s child, and they are both in the budget group. Since all three conditions are met, the daughter’s income is not counted in her own budget. Total monthly income counted is $2,200 (The customer’s monthly income).
The granddaughter’s budget group = Daughter and self. The daughter’s income is still below the tax filing threshold, and she is under 19, but her parent (the customer) is not part of the granddaughter’s budget group. So, the daughter’s income is counted in the granddaughter’s budget. Total monthly income counted is $300 (The daughter’s monthly income).