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Division of Welfare and Supportive Services E-110 Medical Assistance Manual MAGI BUDGETING 22 Jul 01 MTL 03/22 Assistance Unit Budgeting Note: In circumstances where a tax dependent’s assistance unit, per non-filer rules, includes the tax dependent’s parent, the tax dependent’s MAGI-based income would be excluded from the assistance unit budget.

Example: 1. Sarah age 50 claims Stephanie her 17-year-old daughter and Beth her 2 year old grandchild. Sarah earns $3,000 a month in wages and Stephanie earns $500 a month in wages.

Sarah’s assistance unit = Sarah, Stephanie, Beth Assistance unit income = $3,000 Sarah. Stephanie’s income is not included because she is a tax dependent included in her parent’s assistance unit and is not required to file.

Stephanie’s assistance unit = Sarah, Stephanie and Beth Assistance unit income = $3,000 Sarah. Stephanie’s income is not included because she is a tax dependent included in her parent’s assistance unit and is not required to file.

Beth’s assistance unit = Stephanie and Beth

Assistance unit income = $500 Stephanie. Stephanie’s income is included because she is not a child or tax dependent in Beth’s assistance unit.

2. Joan age 45 claims her nephew Steven age 17 and her niece Maria age 14. Joan earns $1,200 a month in wages and Steven earns $250 a month in wages.

Joan’s assistance unit = Joan, Steven and Maria Assistance unit income = $1,200 Joan. Steven’s income is not included as he is a tax dependent, not required to file.

Steven’s assistance unit = Steven and Maria Assistance unit income = $250 Steven. Steven’s income is included because his parent or tax filer is not in the assistance unit.

Maria’s assistance unit = Steven and Maria Assistance unit income = $250 Steven. Steven’s income is included because his parent or tax filer is not in the assistance unit.

E-110.1 Annual Income Guidelines for Children and Tax Dependents

The following annual income guidelines are provided to determine if a child or tax dependent is required to file a tax return. Only the individual MAGI-based income of a child or tax dependent is used to make this determination. Do not deem or prorate income from other household members. Any taxable portion of Social Security benefits for the child or tax dependent are applied toward the tax filing threshold determination. If no portion of Social Security is taxable, none of the Social Security benefits are applied to the tax filing threshold.

The relationship between Social Security benefits and the tax filing threshold is only relevant in determining whether a child or tax dependent’s MAGI-based income (including Social Security benefits) are included in the assistance unit budgeting of the parent or