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Emily MAGN EA CC CC Lorelai MAGC CA EC CC Rory MAGC XA CC EC

Example 9 Merida is 18 years old. She lives with her parents, Elinor and Fergus. Merida is filing taxes for herself. She is not claimed as a tax dependent by anyone. Elinor and Fergus are filing taxes as married, filing jointly. They are not claiming any tax dependents. Person BC+ Category Merida Elinor Fergus Merida MAGC EC XA XA Elinor MAGA XC EA CA Fergus MAGA XC CA EA

This page last updated in Release Number: 25-03 Release Date: 08/13/2025 Effective Date: 08/13/2025

2.8 Modified Adjusted Gross Income Counting Rules Within each Modified Adjusted Gross Income (MAGI) assistance group, all counted and eligible individuals’ countable income is budgeted with one exception: if a group member is a child or tax dependent of a counted or eligible member within the same assistance group, the child's or tax dependent's income is only counted if they are “expected to be required” to file a tax return for the current year. If the tax dependent or child chooses to file a tax return when they are not required to, their income will not be counted. Tax dependents' and children’s income is only counted when they are “expected to be required” to file a tax return. Note If a child or tax dependent is the only person in the MAGI group, they would not have a parent or tax filer eligible or counted in that group. As a result, the child's or tax dependent's income will always be counted, regardless of whether or not they are expected to be required to file taxes. Children in the care of a Non- legally Responsible Relative (NLRR) are an example of children who are the only counted or eligible people in a MAGI group. Tax dependents are only required to file a tax return if they have more income than the filing thresholds set by the IRS each year. If the child or tax dependent of another member in the same assistance group