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8 TITLE 16 HEALTH AND SAFETY DELAWARE ADMINISTRATIVE CODE 16500.6 Applying the tax filing threshold for tax dependents Whether a dependent has to file a return generally depends on the amount of the dependent's earned or unearned income. Single dependents (under age 65) are required to file a tax return if the dependent has earned or unearned income that is more than the limits, or tax thresholds, announced by the IRS annually. IRS Publication 929 Tax Rules for Children and Dependents describes how to determine if a dependent is required to file a return and the applicable tax thresholds. To determine the tax thresholds that apply, we use all of the dependent's MAGI based counted income with the exception of the dependent's Social Security Benefits (SSB). Only the taxable portion of the dependent's SSB may be applied toward the tax filing threshold. If no portion of the SSB is taxable, none of those benefits will be applied toward the tax filing threshold. Except in rare cases, such as receipt of a lump sum payment, a child or tax dependent's SSB will not be taxable unless the tax dependent has other income which itself exceeds the tax filing threshold. If a child or tax dependent's MAGI based income counts toward the total household income, then all of the dependent's SSB counts. 22 DE Reg. 668 (02/01/19) 16600 Income Disregard An amount equivalent to 5% of the Federal Poverty Level (FPL) for the applicable family size is deducted from household income. The income disregard only applies when determining eligibility for an individual under the MAGI-based group with the highest income standard available for the individual. 16700 Budget Period The budget period for applicants and beneficiaries is based on current monthly household income and family size. 16800 Eligibility Determination Household income must not exceed the income standard for the eligibility group applicable to the individual. 17 DE Reg. 503 (11/01/13)

9 DE Reg. 564 (10/01/05) 9 DE Reg. 774 (11/01/05) 10 DE Reg. 143 (07/01/06) 12 DE Reg. 1320 (04/01/09) 13 DE Reg. 1540 (06/01/10) 15 DE Reg. 202 (08/01/11) 17 DE Reg. 503 (11/01/13) 17 DE Reg. 731 (01/01/14) 21 DE Reg. 572 (01/01/18) 22 DE Reg. 668 (02/01/19) 24 DE Reg. 1072 (06/01/21) 29 DE Reg. 212 (09/01/25)