Page 9

8

Also, if a person files taxes but is still claimed as a dependent by another person, the person is still considered a tax dependent for MAGI purposes.

There are three MAGI rules to determine the AG size of a MAGI Household:

• Rule 1 – Tax Filers • Rule 2 – Dependents • Rule 3 – Non-Filers.

Rule 1 – Tax Filers:

1. This person will file a tax return for the year in which eligibility is being determined. 2. This person will NOT be claimed as a dependent on any other person’s taxes.

If the above two statements are true, then the AG would be:

• The tax filer, and if living together the Spouse and tax filer’s dependents. • The tax filer, and if living outside of the home the Spouse, if filing taxes jointly and tax filer’s children, who can be claimed as dependents through a custody agreement or court order.2

The exception to this would be when a dependent and their parent or claiming tax filers are living in the same home and are pulled in the same MAGI household, exclude the income of a dependent who is not required to file taxes; even if the dependent voluntarily files a tax return.4 Rule 2 – Dependents:

If the first two statements under Rule 1 are not true for the member, then you must move to Rule 2.

1. This person will be claimed as a dependent by a single parent who lives in the same home. 2. If both parents live in the home, this person will be claimed as a dependent by both parents, who will file taxes jointly.

If one of the two statements listed above is true, then the AG would be:

The same as that of the tax filer who is claiming this person as a dependent.5

Rule 3 – Non-Filers:

If both statements under Rule 2 are not true, then go to Rule 3. Information regarding Rule 3 is explained under 3205.20.00.

Additional information to determine a MAGI AG: