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TITLE 16 HEALTH AND SAFETY DELAWARE ADMINISTRATIVE CODE 3 16400.2 Basic rule for tax dependents For an individual who expects to be claimed as a tax dependent by another taxpayer for the taxable year in which an initial determination or renewal of eligibility is being made, the household is the same as the taxpayer’s household unless the individual meets any of the following exceptions: the individual expects to be claimed as a tax dependent of someone other than a spouse or parent; the individual is a child under age 19 living with both parents, but the parents do not expect to file a joint tax return; or the individual is a child under age 19 who expects to be claimed by a non-custodial parent. A non-custodial parent is based on a court order or binding separation, divorce, or custody agreement. If there is no such order or agreement or if there is a shared custody agreement, the custodial parent is the parent with whom the child spends most nights. If the individual meets any of the exceptions, the household shall be determined according to the rules described at Section 16400.3, Rule for individuals who neither file a tax return nor are claimed as a tax dependent. 16400.3 Rule for individuals who neither file a tax return nor are claimed as a tax dependent For an individual who does not expect to file a tax return and does not expect to be claimed as a tax dependent for the taxable year in which an initial determination or renewal of eligibility is being made, the household consists of the individual, and if living with the individual: the individual’s spouse; the individual’s children under age 19; and for individuals under age 19, the individual’s parents and any siblings who are also under age 19. 16400.4 Rule for married couples For married couples, each spouse will be included in the household of the other spouse if they are living together or if they expect to file a joint tax return. 17 DE Reg. 731 (01/01/14) 16500 MAGI-based Income MAGI-based income is based on federal tax rules for determining adjusted gross income with some modifications. 16500.1 Counted Income - Below are the common but not exclusive list of included income items per the Internal Revenue Service (IRS) for calculating MAGI. Please visit https://www.irs.gov/publications/p525 to find the entire list of items on the list. • Wages, salaries, tips, etc. • Interest – both taxable and tax-exempt amounts. • Ordinary dividends. • Qualified dividends. • Taxable refunds, credits, or offsets of state and local income taxes. • Alimony - for individuals with alimony agreements finalized on or before December 31, 2018, alimony continues to be included in the income of the recipient for the duration of the agreement unless or until the agreement is modified. Alimony payments under separation or divorce agreements finalized after December 31, 2018, or pre- existing agreements modified after December 31, 2018, are not included in the income of the recipient. • Self-Employment (Business income or loss). • Capital gain or (loss). • Other gains or (losses). • IRA distributions – taxable amount. • Pensions and annuities – taxable amount. • Rental real estate, royalties, partnerships, S corporations, trusts, etc. • Farm income or (loss). • Unemployment compensation. • Social Security benefits – both taxable and tax-exempt amounts. • Lump sum payment - a non-recurring lump sum payment (such as back pay, a retroactive benefit payment, State tax refund, or an insurance settlement) is counted as taxable income only in the month received. • Gambling winnings less than $80,000 are counted in the month received; Winnings of $80,000 but less than $90,000 are counted as income over two months, with an equal amount counted in each month. For every additional $10,000 one month is added to the period over which total winnings are divided, in equal installments, and counted as income. The maximum period of time over which winning may be counted is 120 months.