Modified Adjusted Gross Income (MAGI) Budget Types

Modified Adjusted Gross Income (MAGI) Budget Types A. Modified Adjusted Gross Income (MAGI) households are constructed for each individual applying for or renewing coverage. Eligibility is determined at the individual level. Different households may exist within a single family, depending on each household member’s family and tax relationship to each other. B. Tax filer’s households are determined as follows: 1. A tax filer’s household includes the tax filer, spouse and all dependents that the tax filer claims or plans to claim in the tax year for which eligibility is requested. 2. Spouses whose tax filing status is married filing jointly are considered one (1) household whether living together or separately. 3. Spouses whose tax filing status is married filing separately are considered one (1) household if living together. If living apart, each is treated as two (2) households. a) A tax filer household in any other tax filing status includes the tax filer and all dependents that the tax filer claims. b) A tax filer’s household income includes all countable MAGI income received by household members except the income of a tax dependent does not count unless the dependent is required to file a federal tax return. 4. A tax dependent’s household is the same as the tax filer’s household, with certain exceptions as described in Miss. Admin. Code, Title 23, Part 105, Rule 4.6.C. a) If a tax dependent is married and living with his/her spouse, but claimed by a parent as a tax dependent, the tax dependent’s household includes the parent tax filer’s household plus the tax dependent’s spouse. b) The spouse’s household would be limited to the two (2) spouses unless both spouses are claimed by their separate parent(s). c) A tax dependent who is also a parent of child(ren) living in the household must have his/her income counted toward his/her child(ren), regardless of whether the tax dependent parent is required to file a tax return. C. Exceptions to using tax filer rules apply in the following situations: 1. A tax dependent of any age who is not the tax filer’s spouse or child is treated as a non- filer described in Miss. Admin. Code, Title 23, Part 105, Rule 4.6.D. 2. A tax dependent under age nineteen (19) living with two (2) parents who do not expect to file a joint tax return is treated as a non-filer described in Miss. Admin. Code, Title 23, Part 105, Rule 4.6.D. This exception does not apply to children age nineteen (19) and over. 3. A tax dependent under age nineteen (19) claimed as a tax dependent by a non-custodial parent is treated as a non-filer, described in Miss. Admin. Code, Title 23, Part 105, Rule 4.6.D. The child is not a member of the custodial parent’s household even though the child physically resides in the home. The child’s income does not count in the custodial parent’s household income. This exception does not apply to children age nineteen (19) and over. D. Non-Filer households are determined as follows: 1. A non-filer is someone who neither files a federal tax return nor is claimed as a tax dependent. For individuals who are non-filers or exceptions to tax filer rules, budgeting rules depend on whether the individual is an adult or child under age nineteen (19) living in the same household. 2. A non-filer adult’s household includes the non-filer, the non-filer’s spouse and his/her children under age nineteen (19) living together. Income includes all countable Modified Adjusted Gross Income (MAGI) income received by the household members except the income of a child not required to file a federal tax return does not count as income to the household. If a child is also a parent of child(ren) living in the household, the child’s income must be counted toward his/her child(ren) regardless of the requirement to file a federal tax return. 3. A non-filer child’s household includes the non-filer child and the child’s parent(s) and siblings under age nineteen (19) living together.