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All County Welfare Directors Letter No.: 20-10 Page 6 April 30, 2020

individual is a tax dependent of the tax filer for the year in which MAGI Medi-Cal is requested, the CEW shall use Non-Filer Rules to determine the MAGI household composition as outlined in 42 C.F.R. Section 435.603(f)(5).

Additionally, in situations where the applicant or beneficiary reasonably predicts a change in their tax filing status, CEWs shall use the reasonably predictable future changes to establish the household composition. CMS has provided clarification that the flexibilities outlined in 42 C.F.R. Section 435.603(h)(3) include future tax filing status changes as they are the basis for the income counting rules. CEWs shall follow existing self-attestation rules for gathering tax filing information outlined below.

II. Required Tax Filing Information for MAGI Medi-Cal Household Compositions MAGI Medi-Cal household composition methodology follows the federal tax filing rules explained above as a framework to determine household compositions for all MAGI Medi-Cal based programs. In order to be eligible for MAGI Medi-Cal, individuals are not required to file a federal tax return. However, individuals are required to provide information on how they plan on filing federal taxes for the year in which they are seeking coverage, even if they do not plan on filing taxes (i.e. non-filers).

This information is necessary during the application process, as well as annual renewal and changes in circumstances to create a MAGI Medi-Cal household composition. At any redetermination, either at annual renewal or a change in circumstance, the beneficiary shall have an opportunity to review the tax filing information and report changes on their tax filing status (i.e. how the individual plans on filing taxes and/or if they will be claimed as a tax dependent) of anyone in the household. Required tax information for every individual in the MAGI Medi-Cal household are: • Who is the primary tax filer (the first name listed on the tax return); • If the individual expects to file taxes; • If the individual is expected to be required to file taxes; • The individual’s tax filing status (i.e., Head of Household, Married Filing Jointly, Married Filing Separately, Single, or not filing taxes, i.e. non-filer); and • If claimed as a tax dependent, the name of the tax filer claiming the individual as a dependent.

As a reminder, CEWs shall review and update the tax filing information for all household members at application, annual renewal, or when a change in circumstance occurs (such as a person moves into or out of the home, a child is born, or there is an increase or decrease in income). If an individual is unsure how they or others on the case will file federal taxes, or if they are required to file federal taxes, the CEW may refer them to the