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Manual Title Virginia Medical Assistance Eligibility Chapter M04 Page Revision Date October 2018 Subchapter Subject M04 MODIFIED ADJUSTED GROSS INCOME (MAGI) Page ending with M0430.400 Page 11

C. Parent, Stepparent, and Parent’s Child (not child of stepparent) Paul and Pattie are a married couple. They live with Pattie’s son by a first marriage, Edgar age 17. They do not plan to file taxes this year. The household for the MAGI determination is the non-filer household which includes Paul (stepparent/spouse), Pattie (parent/spouse) and Edgar (child/stepchild). All of them applied for MA. The following table shows each person’s tax filer household:

Person # - Household Composition Reason Paul 3-Paul, Pattie, Edgar Non filers – spouses, parent, stepparent and child/stepchild under age 19 Pattie 3-Pattie, Paul, Edgar Non filers - spouses, parent, stepparent and child/stepchild under age 19 Edgar 3-Edgar, Paul, Pattie Non filer lives with parents M0430.400 TAX FILER AND NON TAX FILER HOUSEHOLD EXAMPLES

A. Parent and Child Claimed by Non- custodial Parent

B. Three Generation Household – Grandmother is Tax Filer Linda and her daughter, Liza (age 6), live in the home. Linda works and claims only herself as a tax dependent. Liza is claimed by her father who does not live in the home. Both applied for MA. Linda is a tax filer claiming only herself. Her tax household and MAGI household are the same. Liza is a tax dependent claimed by a non-custodial parent so a tax dependent exception exists and non-filer rules must be used. The following table shows each person’s MAGI household:

Person # - Household Composition Reason Linda 1– Linda Tax-filer with no tax dependent Liza 2 – Liza, Linda Non-filer child and parent living in the home

Mary is a working grandmother who claims her daughter, Samantha, age 20 and a full-time student, and granddaughter, Joy, age 2 as tax dependents. Although Samantha has a part-time job, she is not required to file taxes. All applied for MA.

The tax household includes Mary (the tax filer), Samantha (Mary’s dependent child), and Joy (Mary’s tax dependent). Mary’s MAGI household is the same as her tax household and includes Mary, Samantha and Joy. Samantha’s MAGI household is the same as Mary’s because Samantha is a tax dependent and no tax dependent exceptions exist. Joy’s is also a tax dependent, but meets an exception because she is not the child of the tax filer. Her MAGI household is a non-filer household and includes just Samantha and Joy; parent and child living in the home.