400.22.02 TAX DEPENDENT HOUSEHOLD

A tax dependent is an individual who expects to be claimed as a tax dependent. Unless a tax dependent meets an exception, a tax dependent’s household is generally the household of the tax filer. A tax dependent’s household must include the following, as applicable: • The tax dependent; and • The tax filer who is claiming the individual as a tax dependent (this could be two people if filing jointly); and, • Any other tax dependents the tax filer is claiming; and, • The tax dependent’s spouse if living together. Self-attestation of tax dependent status may be accepted. Additional information may be requested if attested information appears inconsistent with tax filer rules. For example, if a tax filer expects to claim another individual with more income than the tax filer, further information is needed. In instances where tax dependency cannot reasonably be established, include the individual in the MAGI household using non-filer rules. A tax dependent may be a child (biological, adopted or stepchild) or some other family member or non-family member who meets the requirements to be claimed as a tax dependent. Each tax dependent’s MAGI household is determined separately: • If the tax dependent does not meet an exception, the household of the dependent is the same as the tax filer’s household. If the tax dependent is married and living with his/her spouse, the dependent’s household also includes the tax dependent’s spouse. • A tax dependent meeting an exception is treated as a non-filer. Tax dependent exceptions, as stated earlier, are: • The tax dependent is not the tax filer’s spouse or child, • The tax dependent under age 19 lives with 2-parents (married or unmarried) who do not plan to file jointly, • The tax dependent under age 19 is claimed as a tax dependent by a non- custodial parent. Tax Dependent Examples: Tax Dependent – no exception: Tim (8) and his sister Tina (6) live with their father, Tom. Both Tim & Tina expect to be claimed as tax dependents by their father. A Medicaid application is filed for Tim only. Tim is a household of 3 – since Tim does not meet any exception, his tax dependent household is the same as the tax filer. Tina is included as a household member because she is also a tax dependent of her tax filer parent. Tax Dependent – combination exception and no exception: Tim (8) and his sister Tina (6) live with their father, Tom who is divorced from their mother. Tom plans to file a federal return claiming Tim. Tina will be claimed by her mother, who does not live in the home. Tom is applying for both Tim and Tina. Tim is a household of 2 – since Tim does not meet any exception, his tax dependent household is the same as his father’s tax filer household. Tina is a household of 3 – Tina meets an exception (under age 19 and claimed by a non- custodial parent). Tina is a non-filer household that includes her, her parent and her sibling. Tax Dependent Not Living with Filer – no exception: Bill is a tax filer who has both of his elderly parents living with him along with his 17-year-old son, Max. His 19-year-old daughter, Sue, lives with her boyfriend. Bill claims all 4 as his tax dependents. Sue is pregnant and is applying for herself as a pregnant woman. Sue’s is a household of 6 – her household consists of the tax filer household (5) plus her unborn child (+1). Sue does not meet an exception, so her household includes her father’s tax filer household (Tom, both grandparents, Max, Sue) + her unborn child. Tax Dependent Exception: Marty (10) lives with his grandmother, who is the primary caretaker for Marty and 4 of Marty’s cousins who live in the home. The grandmother claims Marty and the 4 cousins as tax dependents. She applies for herself and Marty. The other 4 cousins have health coverage through an absent parent. Marty is a household of 1 who meets an exception. He is claimed by someone other than his spouse or parent. Non-filer rules apply. Since he does not live with parents or Medicaid- age siblings, no other household members count in his budget. Grandmother is a household of 6 – she is a tax filer household that includes herself and her 5 grandchildren who she claims as tax dependents. Tax Dependent Exception: Todd lives with both of his biological parents, Mary and Mark, who are not married. Todd will be claimed as a tax dependent by his mother. His father will file separately. Mary applies for Todd. Todd is a household of 3 – he meets the exception of living with parents who cannot file jointly so non-filer rules apply. His household includes himself and his parents.