230-3 Non-Tax Filer’s MAGI Household

Effective Date: January 1, 2017

Previous Policy

1      Non-Tax Filer Household 

non-tax filer is someone who states she does not intend to file a tax return and does not expect to be claimed as a dependent by someone else for the tax year in which the eligibility agency is making a determination of eligibility.  Accept the client's statement that he or she does not intend to file a tax return and does not expect to be claimed as a dependent by someone else.

The MAGI household for a non-tax filer is based on who lives together and the relationships of those individuals.  These rules apply to the non-tax-filer and to certain individuals claimed as a dependent. 

The non-tax filer rules apply to:

A           A child applicant who meets the age criteria not living parents and who does not expect to file a tax return nor be claimed as a dependent by any other tax filer;

B           A child who meets the age criteria  in section 210 and who lives with:

a           Parent(s) who do not expect to file a tax return; whether or not the child will file taxes.

b           One parent but is claimed as a tax dependent by a non-custodial parent.

c            Both parents (biological or adoptive), and is claimed by one parent, but the parents do not file a joint return.

d           One parent that plans to file a tax return with their estranged spouse and the couple is permanently separated.  The estranged spouse will not be included in the MAGI household.

e           A child who is placed with a tax filer for adoption.

o      Whose adoption has not yet been finalized before the court; and

o      Whose adopting parents are claiming them as a tax dependent.

C          A child who is claimed as a tax dependent by someone other than a spouse  or legal parent, regardless of whether the person will file a tax return of their own.  

2      MAGI household for children under 19 living with non-filer parents

The MAGI household size for CHIP for a child living with parents that are non-tax filer’s whether or not the child expects to file a tax return or states she will not file a tax return, will follow non-tax filer rules to determine the MAGI household size.

A           To determine the MAGI household size, include the following individuals living with the child:

a           The child;

b           All parents of the child;

c            All siblings of the child who are

o      Under age 19; or

o      Age 19 or 20 and enrolled in school full-time.

d           The number of expected unborn children of anyone included in the household who is pregnant;

e           If the child is married, the spouse of the child; and

f             Any children of the child or child's spouse who meet the age criteria in c.

B           Temporary absence rules apply (203-1).

3      MAGI household for a child under age 19 who does not live with a parent and does not expect to file a tax return

If a child under age 19 does not live with a parent, and does not expect to file a tax return, use non-tax-filer rules to determine the child's MAGI household size. 

A           The individual's MAGI household size for a non-tax filer includes the following people who live together.

a           The individual;

b           The spouse;

c            Children of the individual or spouse who are either:

o      Under age 19; or

o      Age 19 or 20 and enrolled in school full-time.

d           The number of expected unborn children of anyone included in the household who is pregnant.

e           Siblings of the individual if those siblings meet the age criteria above.

B           Temporary absence rules apply (203-1).

4      MAGI Household for Children Living with one Parent who is Filing a Joint Return

The MAGI household size for CHIP for a child living with one parent whose estranged spouse will file a joint return but claims they are permanently separated, will follow non-tax filer rules to determine the MAGI household size.

To determine the MAGI household size, include the following individuals living with the child:

A           The child;

B           All parents of the child living in the home;

C          All siblings of the child who are

o    Under age 19; or

o    Age 19 or 20 and enrolled in school full-time.

D          The number of expected unborn children of anyone included in the household who is pregnant;

E           If the child is married, the spouse of the child; and

F           Any children of the child or child's spouse who meet the age criteria in c.

G          Temporary absence rules apply (203-1).

 

Household chart for non-filer households (people who live together)

Children under age 19 who live with non-filer parent

Children under age 19 who do not live with parents, and do not file taxes on their own

·      Child

·      Child

·      Parents

·      Spouse of child if married

·      Siblings of child who meet age criteria

·  Children of the individual or spouse who meet the age criteria

·      Spouse of child if married

·      Siblings of child who meet the age criteria

·      Expected number of unborn of anyone included in the household who is pregnant

·      Expected number of unborn of anyone included in the household who is pregnant

·      Children of the individual or spouse who meet the age criteria