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TITLE 16 HEALTH AND SAFETY DELAWARE ADMINISTRATIVE CODE 7 • Supplemental Security Income (SSI); • Temporary Assistance to Needy Families (TANF) and other government cash assistance; • Veteran’s benefits; • Worker’s Compensation payments; • 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. 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. • Other Non-Taxable Income. 21 DE Reg. 572 (01/01/18) 24 DE Reg. 1072 (06/01/21) 16500.3 Deductions • Educator expenses; • Certain business expenses of reservists, performing artists, and fee-basis government officials; • Health savings account deduction; • Deductible part of self-employment tax; • Self-employed SEP, SIMPLE, and qualified plans; • Self-employed health insurance deduction; • Penalty on early withdrawal of savings; • Alimony paid; • IRA deduction; • Student loan interest deduction; • Domestic production activities deduction. 24 DE Reg. 1072 (06/01/21) 16500.4 Special income counting rules for children claimed by a parent A child's MAGI based income is excluded from total household income if: • The child is either under age 19 or is an adult child claimed by a parent as a tax dependent; and • The child and parent are both included in the MAGI-based household; and • The child's income is below the tax filing threshold (i.e., the child is not expected to be required to file a tax return for the current tax year). This rule applies to a child or children living with a parent whether household composition is based on the rules for tax filers or the non-filer rules. It does not matter whether the child actually files a tax return. 22 DE Reg. 668 (02/01/19) 16500.5 Special income counting rules for children or dependents claimed by someone other than a parent The special income counting rule for tax dependents applies in the case of tax dependents who are claimed by someone other than a parent. When a dependent is claimed by someone other than a parent, the tax dependent's income is excluded from total household income if: • The tax dependent and the tax filer who expects to claim the individual are both included in the household; and • The tax dependent's income is below the tax filing threshold (i.e., the tax dependent is not expected to be required to file a tax return for the current tax year); it does not matter whether the dependent actually files a tax return. When determining the total household income of a dependent who is claimed by someone other than a parent, the MAGI-based income is always counted in determining the child or dependent's eligibility, even if the income is below the tax filing threshold. Such a tax dependent’s household would not include the claiming tax filer due to the exception at 42 CFR 435.603(f)(2)(i). This means that the tax dependent’s MAGI based income would not be excluded from his or her own household income. Exception: If a tax dependent’s household is established using the non-filer rules described at 435.603(f)(3) and includes the tax dependent’s parent, the tax dependent’s income should be excluded from his or her own household income. 22 DE Reg. 668 (02/01/19)