MEMORANDUM

DISCUSSION:

This memorandum provides clarification to MAGI Policy Manual section, 1885.010.00 Adding a Person.

Examples in this section have been updated to correct MAGI household composition when an individual is included in multiple MAGI household.

• When an individual is claimed as a tax dependent by someone who physically resides in their home, that individual’s MAGI household composition will include all of the tax filer’s dependents even if other the dependents live in the same home.

  EXAMPLE: Joe lives with his mother who is his custodial parent. His father, Frank, and stepmother, Jane, claim Joe as a tax dependent along with their other three children. Frank and Jane’s other three children all receive MHK. Since Joe is Frank and Jane’s tax dependent, he is included in the other three children’s MAGI households when determining their eligibility for MHK benefits.

• When an individual is claimed as a tax dependent by someone who physically resides outside of their home, the individual’s MAGI household composition will be determined by non-tax filer rules.

  EXAMPLE: (continued from above): Joe resides with his mother, Stephanie and his half-sibling, Jon. Stephanie is a tax filer and intends to only claim Jon as a tax dependent. Joe will be claimed by his father, Frank, who resides outside of the home. Joe’s MAGI household composition is determined by non-tax filer rules since he is claimed by an individual living outside of the home. Joe’s household consists of himself, Stephanie, and Jon. Jon’s MAGI household consists of two, himself and Stephanie.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

PL/ks