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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 M0450.200 Page 26

C. Example # 3 Tax Filer with Dependent Outside of the Home (Using January 18, 2018 figures) John applies for Medicaid for himself and his child Richard. John files taxes and claims Richard as well as his 17-year-old daughter, Bridget, who does not live with him. John works part time making $800 a month and Bridget works part time making $625 a month. They live in Fairfax County (Group III).

Person # - Household Composition Reason John 3 - John, Richard, Bridget Tax filer and dependents Richard 3 - Richard, John, Bridget Tax dependent, tax filer, and other dependent

Even though Bridget has income over the tax filing threshold ($6,300 in 2016) and is required to file taxes on her own, she is part of John’s tax filing household as a dependent, so her income counts toward any HH in which she is included, in this case, the HH of her father John.

John’s eligibility determination: Potential covered groups: LIFC MAGI Adult Plan First Monthly income limits: LIFC (Group III) HH of 3 = $807 MAGI Adult income limit for HH of 3=$2,391 Plan First HH of 3 = $3,464 5% FPL Disregard for HH of 3 = $86

John’s gross HH income of $1,425.00 exceeds the LIFC income limit for 3 of $807, and he is entitled to the 5% FPL disregard. $1,425.00 gross household income - 86.00 5% FPL Disregard for HH of 3 $1,339.00 countable income

His countable income of $1,339 is less that the MAGI Adult limit of $2,304 for 3. John is eligible for full coverage in the MAGI Adult coverage group. Bridget’s eligibility determination Bridget was not applied for.