259.07 MAGI: Whose Income Counts (MAM)

SR 14-04 Dated 01/14

Previous Policy

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In general, the MAGI income of all members included in each individual's MAGI household is counted when determining income eligibility for each individual.

. Exception for the income of children:

- Unless a child is expected to be required to file a federal income tax return, his or her income does not count toward household income if the child is included in the household of his or her parent. This means that in this circumstance, the child's income does not count for purposes of evaluation the child's eligibility or the eligibility of other household members. This also applies for adult children who are tax dependents of their parent.

- If a child does not live with his or her parent and is not claimed as a tax dependent by his or her parent, then the child's household will not include the parent. In this case, the child's income will count for his or her own eligibility and the eligibility of the child's other household members, such as their siblings, regardless of whether the child's income is high enough to require a tax return to be filed.

. Exception for the income of most other tax dependents:

- The income of a tax dependent is included in the household income of the person who is claiming them only if the tax dependent is expected to be required to file a tax return.

- The income of a tax dependent is included in the household income of any household where both that tax dependent and his or her claiming tax filer are present, only if the tax dependent is expected to be required to file a tax return.

- This exception does not apply to a tax dependent's income when determining the household income of any household where the tax dependent's parent and the tax dependent's claiming tax filer are not part of that household. In this circumstance, the tax dependent's income counts toward household income regardless of whether or not he or she is expected to be required to file a federal income tax return.

References: 42 CFR 435.603