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Manual Title Chapter Page Revision Date Virginia Medical Assistance Eligibility M04 April 2023 Subchapter Subject Page ending with Page M04 MODIFIED ADJUSTED GROSS INCOME (MAGI) M0430.100 6

15. Sibling means a natural, biological, stepsibling or half-sibling. 16. Tax-Dependent means an individual for whom another individual claims a deduction for a personal exemption under section 151 of the Internal Revenue Code of 1986 for a taxable year. 17. Tax-filer Household means individuals who expect to file a Federal tax return and/or who expect to be claimed as a tax dependent for the taxable year in which an initial determination or renewal of eligibility is being made. 18. Tax Filing Threshold is the minimum amount of income an individual must earn in order to be required to file a federal income tax return. The amount varies depending on the individual’s age, marital status and number of dependents. The amount generally changes annually. M0430.100 MAGI HOUSEHOLD COMPOSITION

A. Introduction The household composition is the basis for the financial eligibility determination for each person in the home who applies for MA. Eligibility is based on the countable income of the household members. Included in the MAGI household composition are: • stepparents and stepchildren, • children/siblings with income, • children ages 21 and older who are claimed as tax dependents, and • adult tax dependents. B. Household Composition Rules Tax filers and tax dependents use the tax household rules with limited exceptions. In most cases, the household is determined by principles of tax dependency. • Parents, children and siblings are included in the same household. • Stepparents and parents are treated the same. • Children and siblings with or without income are included in the same household as the rest of the family. • Older children are included in the family if claimed as tax dependent by the parents. • Married couples living together are always included in each other’s household even if filing separately. • Married couples that are separated and not living together but file jointly are not included in each other’s household. • Dependent parents may be included in the household if they are claimed for income tax purposes. 1. Tax Filer Household Composition The tax filer household is determined based on the rules of tax dependency. Parents, children and siblings are included in the same household. The tax filer’s household consists of the tax filer and all tax dependents who are expected to be claimed for the current year. This could include non-custodial children claimed by the tax filer, but living outside the tax filer’s home and dependent parents claimed by the tax filer, but living outside the tax filer’s home.