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2418.00.00 HOUSEHOLD TAX RELATIONSHIPS (MED 3)

Applicants or recipients whose eligibility is reviewed must attest whether they have filed or expect to file taxes or whether they have been claimed or expect to be claimed as a tax dependent in the year eligibility is being determined or re-determined. The household tax relationship is required for all newborns. If household tax filing status is unavailable or questionable, member contact should be made initiated, and documentation should be requested. When tax dependency cannot be reasonably established the answer should default to “no” unless otherwise indicated. Newborn tax dependency that cannot be “reasonably established “should default to “no” or correspond to siblings’ tax relationship included in the case. Certain individuals regardless of their tax attestation are required to file taxes based on their gross income, filing status, age, and tax dependency. These MAGI tax households should be entered in eligibility system according to IRS threshold.79 A person’s tax filing status will determine the AG formation for that individual. Please, refer to IHCPPM 3200 for specific policy for MAGI categories.80

When the category being determined is non-MAGI, the tax filing status of an applicant or recipient is not required to determine eligibility.

Note: Filing taxes is not an eligibility requirement for Medicaid or CHIP.81No case should be denied or closed for not verifying tax relationship. When tax dependency cannot be reasonably established, the inclusion of such individual in the household is determined in accordance with the non-filer tax rule, however the “required to file” question must be based on the IRS threshold.82

2420.00.00 RESIDENCE IN THE HOME OF A SPECIFIED RELATIVE (MED 3) The following policy is limited to MAGF, MASB/MASP (Low-Income Parent/Caretaker, or LIPC), and TMA HIP. For more information on TMA HIP and MA F, please, refer to IHCPPM 3800. For MAGF, MASB/MASP (LIPC), and TMA HIP relationship or assistance group determination refer to IHCPPM 3205.05.00 through 3205.20.00. LIPC status does not rely on any certain tax- filing status but is based on relationship and residency requirements which mirror Temporary Aid for Needy Families (TANF) rules.

To be considered LIPC for the categories listed here, the MAGF, MASB/MASP (LIPC), or TMA HIP applicant/recipient must be living together with (see IHCPPM 2420.10.05) and serving as the caretaker of a minor child with whom they share a specified degree of relationship. The individual with whom the person resides must be the parent (adoptive or biological) or step- parent of the minor child; or the child must be related to the applicant/recipient as specified in either of the following groups: