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West Virginia Income Maintenance Manual Chapter 3

West Virginia Income Maintenance Manual Page 54 Chapter 3 Eligibility Determination Groups

Uncertain Tax Status Example: An applicant indicates she is currently separated and seeking a divorce. The living arrangements of the children are to be determined by family court. She is uncertain if the children will remain in her household for the tax year, or whether she will be able to claim them as tax dependents on next year’s tax return. Because the tax dependency status of the children cannot be reasonably established on the date of application, inclusion of the children in the applicant’s MAGI household is determined using STEP 3. 3.7.3.A MAGI HOUSEHOLD SIZE EXAMPLES Example 1: Moss and Fern are married with two children, Cedar, age 7, and Violet, age 5. Moss and Fern file taxes jointly and claim both children as dependents. Moss is a tax filer. Using STEP 1, his household includes himself, each of his tax dependents and his spouse – Moss, Fern, Cedar and Violet = Four. Fern is a joint tax filer. Using STEP 1, her household includes herself, each of her tax dependents and her spouse – Moss, Fern, Cedar and Violet = Four. Cedar is a tax dependent. Using STEP 2, he does not meet any of the exceptions. James’ household includes himself, the tax filers and other tax dependents – Moss, Fern, Cedar and Violet = Four. Violet is a tax dependent. Using STEP 2, she does not meet any of the exceptions; therefore, her household includes herself, her tax filers, and other tax dependents in the household – Moss, Fern, Cedar and Violet = Four. Example 2: Oak and Ivy are not married, but have one child together, Acorn, age 9 months. Oak is a tax filer and claims Acorn as his dependent. Ivy is also a tax filer. Oak is a tax filer. Using STEP 1, his household includes himself and his tax dependent Acorn – Oak and Acorn = Two. Ivy is a tax filer. Using STEP 1, her household includes herself only – Ivy = One. Acorn is a tax dependent. Using STEP 2, Acorn meets exception number 2; therefore, her household is determined using STEP 3. Acorn’s household includes herself and her parents – Acorn, Oak and Ivy = Three. Example 3: Elm is a tax filer and claims his 10-year-old son, Birch, as a tax dependent. Elm is the non-custodial parent as Birch lives with his mother.