400.21.01 INDIVIDUAL EXPECTS TO FILE OR EXPECTS TO BE CLAIMED AS A TAX

DEPENDENT As described in Chapter 201, MAGI Income Rules, MAGI is a financial methodology that is based on federal tax rules. MAGI budgeting rules differ depending on whether household members are tax filers, tax dependents, tax dependent exceptions or non- filers. The MAGI application form asks whether individual household members plan to file a federal tax return “next year.” If the household member plans to file a federal tax return or plans to be claimed as a tax dependent, these responses are accepted regardless of whether or not a tax return is ultimately filed. NOTE: If an individual expects to be both a tax filer and a tax dependent, the individual is treated as a tax dependent under MAGI rules. Tax filer and tax dependent rules are applied if the individual plans to file federal taxes even if the individual is not “required” to file a tax return. Many low-income individuals are not required to file a federal tax return because their gross income does not meet the tax filing threshold for the corresponding tax year. However, these individuals may still file taxes to recover taxes paid. Tax filer rules and tax dependent rules are applied to the MAGI budgets of individuals who plan to file taxes, even if they are not required to file federal taxes.