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expects to have less annual taxable income than the amounts below, their income is not included in the eligibility determination for the assistance group. The following amounts are effective January 1, 2026: • $1,350 per year in taxable unearned income* • $16,100 per year in taxable earned income *For expected unearned income, do not count Child Support, Social Security, Supplemental Security Income (SSI), Workers' Compensation, Veteran’s Benefits, money from another person, or educational aid. These income counting rules apply regardless of whether the assistance group was formed based on MAGI Tax Filing Rules or MAGI Relationship Rules. The income of household members who are currently out of the home due to military activity will still be counted according to MAGI rules, even though the person will not be eligible on the case. Example 1 Jack and Jill are married and will be filing a joint tax return. They have two children, Mickey (16) and Minnie (12), whom they will claim as tax dependents. Minnie has no income, but Mickey works at McDonald’s earning approximately $100 per month. Mickey’s annual earned income is expected to be $1,200; he is not expected to be required to file a tax return at the end of the year. Mickey’s income is not counted.

Example 2 Daisy plans to file taxes this year. She has one tax dependent, her son Donald (16), who works part- time at a grocery store. He earns $1,400 per month; with an annual income of $16,800. Based on this income, Donald will be expected to be required to file a tax return. Donald’s income is counted.

Example 3 Kelly and Zack are non-married co-parents and have two children, Jessie (17) and Albert (14). Albert mows lawns in the summer and makes around $300 for the year. The only other income in the household is Zack’s unemployment payment in the amount of $400 per month ($4,800 per year). Kelly and Zack do not plan to file taxes. Albert is not expected to be required to file taxes. The assistance groups for this case will be based on non-MAGI relationship rules since there is no tax filer in the household. Zack’s UI payment will be counted, but Albert’s self-employment income is not counted because he is not expected to be required to file.

Example 4 Michael (16) and his sister Janet (17) live with their aunt Barb and her two children. Barb applies for BadgerCare Plus for herself, her two children, and her niece and nephew. Barb states she plans to file taxes and will be claiming Michael, Janet, and her two children as tax dependents. Barb is self- employed earning about $800 per month. Michael is working part-time at Dairy Queen earning approximately $150 per month. Michael is not expected to be required to file taxes. Janet works part- time at Copps and makes $1,400 per month. She will be expected to be required to file taxes. Outcome for Barb Barb’s assistance group will consist of herself and all four children since she will be claiming them as tax dependents. Michael’s income will not be counted in Barb’s assistance group because he is not expected to be required to file taxes, but Janet’s income will be counted in Barb’s group because Janet is expected to be required to file taxes. Barb’s children’s assistance groups will be the same as Barb’s assistance group.