401-3 Non-Tax Filer's Household

Effective Date: November 1, 2021

Previous Policy (234-2 was renumbered to 401-3 as of November 1, 2021)

A. Non-Tax Filer Household

1. A non-tax filer is someone who states they do 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 an eligibility determination. Accept the client's statement that they do not intend to file a tax return and does not expect to be claimed as a dependent by someone else.

2. 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, the non-filer's family, and to certain individuals claimed as a dependent. Use non-filer household rules for:

a. An adult 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 B.1.c; and

· lives with parents who do not expect to file a tax return; or

· lives with one parent but is claimed as a tax dependent by a non-custodial parent; or

· lives with their parent, expects to file a return, but whose parents do not expect to file a return.

· does not live with either parent, is not absent for a temporary reason and does not expect to file a tax return.

c. An adult or child who is claimed as a tax dependent by someone other than their spouse or biological, adopted or step-parent, regardless of whether the person will file a tax return of their own.

d. A child who is placed with a tax filer for adoption, whose adoption is not finalized and the adopting parents are claiming them as a tax dependent.

B. MAGI Household for a Non-Filer who is not Claimed as a Dependent by any Tax Filer

1. The individual's MAGI household size for a non-tax filer who does not expect to be claimed as a tax dependent by anyone, or is a dependent described in A., includes the following family members living with the individual or are temporarily absent (401-4). (See the Household chart below for the household size of the other family members.)

a. The individual;

b. The spouse;

c. Children of the individual or spouse who are either:

· Under age 19; or

· 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 individual meets the age criteria in c., include the individual's parents and any siblings who also meet that age criteria.

Example 1: Steve (age 20) and Katy (age 18) are not married. They have an eight-month-old baby, Lucy. Katy is pregnant. They are both in school full time and do not live with either of their parents. Steve works full time and is not claimed as a tax dependent by anyone. He states that he will file taxes and will claim Lucy as a tax dependent. Katy is claimed as a tax dependent by her parents. Steve's MAGI household would include himself and Lucy. Katy's MAGI household would include herself, her unborn, and Lucy, Lucy's MAGI household would include herself, both her parents, and the unborn.

2. A child who exceeds the age criteria under #1 c. is not counted as part of the non-filer parent's household, nor the household of siblings who meet the age criteria. Build the MAGI household for that child as an adult. Determine if the child will file a tax return, and use the rules for either a tax filer (401-2) or a non-tax filer (401-3).

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

Adult non-filer (does not meet age criteria of a child)	Spouse of non-filer (does not meet age criteria of a child)	Children who don't file, and meet age criteria	Other dependents claimed by a filer (some dependents may not live with the tax filer claiming them)
· Individual	· Individual	· Child	· Individual
· Spouse	· Spouse	· Parents	· Spouse
· Children of the individual or spouse who meet the age criteria	· Children of the individual or spouse who meet the age criteria	· Siblings who meet age criteria	· Parents, and siblings who meet the age criteria, if the individual also meets the age criteria of a child
· 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	· 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
		· Spouse of child if married	· Children of the individual or spouse who meet the age criteria
		· Children of the individual or spouse who meet the age criteria