Page 18

Manual Title Chapter Page Revision Date Virginia Medical Assistance Eligibility M04 October 2018 Subchapter Subject Page ending with Page M04 MODIFIED ADJUSTED GROSS INCOME (MAGI) M0430.400 12

The following table shows each person’s MAGI household:

Person # - Household Composition Reason Mary 3 – Mary, Samantha, Joy Tax-filer & dependents Samantha 3 – Samantha, Mary, Joy Tax-filer & dependents Joy 2 – Joy, Samantha Non-filer parent and child

C. Three Generation Household – Second Generation Tax Filer

D. Two Parents Not Married To Each Other, One Is Tax Filer With Children, One Is Child Of One Parent And Other Is Child-In- Common Rose is a tax dependent of her daughter, Lee, age 18. Lee works and claims her son, Peter, and Rose as tax dependents. All applied for MA.

The tax household includes Lee (tax filer), Rose (tax dependent), and Peter (tax dependent). Rose is not the child of the tax filer so a tax dependent exception exists and non-filer rules are used for her MAGI household. Lee is a tax filer with dependents so her MAGI household is the same as her tax household. Peter is a tax dependent living with his tax filer parent so his MAGI household is the same as the tax household. The following table shows each person’s MAGI household:

Person # - Household Composition Reason Rose 2– Rose and Lee Non-filer, has child under age 19 Lee 3 – Lee, Rose and Peter Tax-filer with dependents Peter 3 – Peter, Lee and Rose Tax dependent lives with tax- filer parent and parent’s other tax dependent

Bob and Ann live together with Bob’s son, John age 14, and their child-in- common, Jane age 12. Ann works and files taxes claiming both children as dependents. Bob does not file taxes. All applied for MA.

Bob is a non-filer and is not claimed as a tax dependent of anyone. His MAGI household uses non-filer rules and includes Bob and his children living in the home. Ann is a tax filer with tax dependents; her MAGI household is the same as her tax household. John is a tax dependent of someone other than his parent so non-filer rules are used. John’s MAGI household includes John, his father Bob and his sibling Jane. Jane is a tax dependent of her tax filer mother, but her parents are not filing jointly so non-filer rules are used and her MAGI household includes her parents and siblings. The following table shows each person’s MAGI household:

Person # - Household Composition Reason Bob 3 - Bob, John and Jane Non-filer with children Ann 3 – Ann, John and Jane Tax filer and her dependents John 3 - John, Bob, and Jane Non-filer with parent and siblings-no direct relation to tax filer Ann Jane 4 – Jane, Bob, Ann and John Non-filer child with 2 parents and half-sibling