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Chapter: 2200 Standard Filing Unit Program: MFAM 29 If the individual being tested for eligibility is a child that does not expect to file a tax return and does not expect to be claimed as a tax dependent by someone else, the SFU includes the: 1. individual, 2. individual’s parents (biological, adopted and step) living in the household, and 3. individual’s siblings (biological, adopted, step and half) living in the household that are under the age of 19, or age 19 or 20 enrolled in school full-time.

A tax filer and tax dependent’s standard filing unit may contain a member(s) who is a tax dependent who does not reside inside the household of those applying for Family-Related Medicaid, but will be counted as part of the SFU based on tax rules. This individual is referred to as an outside of the household (OOTH) member. Individuals who are tax dependent and living outside of the household will not have an option to receive benefits as part of the application, but their needs and countable income will be included. The system will allow customers to define tax relationships between individuals on the application, including those individuals who are living outside of the household (OOTHs).

SSI recipients in the household are included in the Standard Filing Unit, but their SSI income is excluded. If the SSI recipient has any other income, it is included, subject to tax rules. 2230.0401 Definition of Terms (MFAM)

1. A child is an individual under the age of 21, who has never been emancipated, is not married or whose marriage was annulled, and whose eligibility is being determined. 2. A child (for parents or other caretaker relatives who derive eligibility for themselves) is an individual under the age of 18, who has never been emancipated, is not married or whose marriage was annulled. 3. Parent or other caretaker relatives includes mother, father, adoptive mother and adoptive father, grandmother, grandfather, stepfather, stepmother, siblings (including natural, adopted, step, and half), uncle, aunt, first cousin (including first cousin once removed), nephew or niece and individuals of preceding generations as denoted by prefixes of, great, great-great, or great-great-great. Include the spouse of such parent or relative even after the marriage is terminated by death or divorce. 2230.0402 Parents and Other Caretaker Relatives (MFAM) In order to be eligible for Medicaid, a parent or other caretaker relative (including the spouses if living in the home), who is within the specified degree of relationship, must live with a child. The child does not have to be a tax dependent of the adult parent or other caretaker relative to be potentially eligible.

Note: A parent or other caretaker relative who is ineligible for Medicaid because of having been sanctioned due to failure to comply with CSE requirements or other technical factors must continue to have their income included. 2230.0403 Income of SFU Members Included (MFAM) After determining the SFU for each individual, include all countable income of every individual included in the SFU.

Include all countable income of individuals not considered to be children living with their parent or not tax dependents, such as parents, caretaker relatives and their spouses, must be included. Note: A spouse cannot be a tax dependent of the other spouse.

Examples: • When an individual lives with their parent, and is expected to be required to file a tax return (income above the threshold), include all countable income of the individual in all AGs in which the individual is either counted (CA, CC) or eligible (EA, EC).