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West Virginia Income Maintenance Manual Chapter 4
West Virginia Income Maintenance Manual Page 160 Chapter 4 Income
Example 2: Birch and Lily live together but they are not married. They have one child together named Ginger, who is two years old. Birch is the custodial parent of his son Aspen, from a prior marriage, who lives with him full time. Birch and Lily are both tax filers and file taxes separately. Birch claims Aspen and Ginger as tax dependents. Birch earns $1,400 per month in wages. Lily earns $1,300 per month in wages. Neither child has income. 1. Determine the MAGI Household Size for each applicant: • Birch is a tax filer. Using STEP 1 in Section 4.7.2.A above Birch’s MAGI household size equals three – Birch + his tax dependents Aspen and Ginger. • Lily is a tax filer. She has no tax dependents. Lily’s MAGI household size equals one - Lily. • Ginger is a tax dependent. She meets an exception in STEP 2 in Section 4.7.2.B because she is living with both parents, but they will not file a joint tax return; therefore, her MAGI household is determined by STEP 3. Ginger’s MAGI household size equals four – Ginger + her parents Birch and Lily + sibling Aspen. • Aspen is a tax dependent, but he does not meet an exception in STEP 2. Therefore, his MAGI household is the same as Birch, the tax filer claiming him. Aspen’s MAGI household size is also three – Aspen + Birch + Ginger. 2. Determine MAGI for each Household: Income of each member of the applicant’s MAGI household is counted unless identified as not being counted in Section 4.7.1 above. • Birch is not the child or expected tax dependent of another member of this MAGI household; therefore, his income will count. Ginger and Aspen are the child and/or expected tax dependent of another member of the MAGI household. However, neither is expected to be required to file a tax return. Any of their income would not be counted. Birch and Aspen’s MAGI household income = Birch’s income = $1,400. • Lily is neither the child nor expected tax dependent of another member of her MAGI household; therefore, her income will count. Lily’s MAGI household income = $1,300. • Ginger’s MAGI household includes both of her parents, Birch and Lily. Ginger’s MAGI household income = Birch and Lily’s income = $2,700.