1805.030.00 Modified Adjusted Gross Income (MAGI) Methodology

1805.030.10.20 Exceptions to MAGI Household Composition

IM-97 November 9, 2015

Apply tax non-filer rules if the individual meets any of the following exceptions:

  • The individual expects to be claimed as a tax dependent of someone other than a spouse or a biological, adopted or stepparent
  • The individual is a child under age 19 living with both parents, but will be claimed as a tax dependent by only one parent
  • The individual is a child under age 19 who expects to be claimed by a non-custodial parent

EXAMPLE ONE: Mom and Dad, not married, both over age 19, live together, and have a child (age 3). Mom and Dad each file taxes separately. Dad claims their child as his tax dependent. The MAGI households for each applicant would be as follows:

  • Dad is a tax filer. He is not married to Mom. Dad is claiming the child as his dependent.
    • Dad is a MAGI household of 2 (Dad and Child).
    • Dad receives MHF if he and the child meet all eligibility factors.
  • Child is not expected to file a tax return. Child will be claimed as a tax dependent by Dad.
    • Child meets the exception: “The individual is a child under age 19 living with both parents, but will be claimed as a tax dependent by only one parent.” Non-filer rules apply to the child.
    • Child is a MAGI household of three (Child, Dad and Mom).
    • Child receives MHF if he/she meets all eligibility factors.
  • Mom is filing taxes, she is not claiming dependents nor does she expect to be claimed as a dependent herself. Mom is not married to Dad.
    • Mom is a MAGI household of one (Mom only) using tax filer rules.
    • Mom meets the definition of caretaker relative as she has care of the child.
    • Mom receives MHF if she and her child meet all eligibility factors.

EXAMPLE TWO: Mom and Dad, not married, both over age 19, live together, and have a child (age 3). Mom is a non-filer and Dad is a tax filer. Dad claims their child as his tax dependent. The MAGI households for each applicant would be as follows:

  • The MAGI households for Dad and Child are the same as in Example One. Dad is filing taxes. He is not married to Mom. Dad is claiming the child as his dependent.
    • Dad is a MAGI household of 2 (Dad and Child).
    • Dad receives MHF if he and the child meet all eligibility factors.
  • Mom is not a tax filer and does not expect to be claimed as a tax dependent. Mom is not married to Dad.
    • Using non-filer rules, Mom is a MAGI household of 2 (Mom and Child).
    • Mom meets the definition of caretaker relative as she has care of the child
    • Mom receives MHF if she and her child meet all eligibility factors.

EXAMPLE THREE: Grandmother and two granddaughters (both under age 19 and sisters) live together. Grandmother is a non-filerThe households for each applicant would be as follows:

  • The granddaughters are not tax filers and do not expect to be claimed as tax dependents by anyone.
    • Using non-filer rules, the granddaughters are a MAGI household of 2 (grandmother is not counted).
    • The granddaughters would have potential eligibility for MHK if they meet all other eligibility factors.
  • Grandmother is not a tax filer and does not expect to be claimed as a tax dependent.
    • Using non-filing rules, Grandmother is a MAGI household of 1.
    • Grandmother is a non-parent caretaker who receives MHF if she and at least one of the granddaughters meet all eligibility factors.