WAG 15-06-01-h

new textFor each EDG, IES will use the total countable income of each person included in the EDG, except that there are special rules concerning whether to count the income of:

  • a child or stepchild (of any age) of another person in the EDG, or
  • a tax dependent.

The rule about whether to count the income of a child or tax dependent is based on whether the person is expected to be required to file a tax return for the current tax year.

The income amounts that determine whether a tax dependent may be required to file a tax return are based on IRS rules and are subject to change. Currently, IES is programmed to budget the income of a child/stepchild of another person in the EDG, or the income of a tax dependent, when:

  • their monthly earned income equals or exceeds $517 per month, or
  • when countable unearned (excluding SSA) income exceeds $83.

Step 1

Is the person a child or stepchild (of any age) of another person in this EDG?

If yes, the below rules apply even if the person is also a tax dependent.

If not, go to Step 2.

Step 2

Is the person a tax dependent?

NOT Expected to be Required to file The person's income is not counted toward any person who is included in this EDG.

The tax dependent's income is not counted toward the EDG of the taxpayer.

However, if the dependent is in a separate EDG from the taxpayer, his income is counted

  • in his own EDG, and
  • any other EDG in which he is included (in which the tax payer is not included).
Expected to be required to file The person's income is counted for all persons included in this EDG. The dependent's income is counted in
  • the EDG of the taxpayer,
  • his own EDG, and
  • any EDG in which he is included.

Note:

SSA income is not considered when determining whether a person will be required to file a tax return, however:

  • If the person's income must be counted according to the above rules, all their income is counted, including SSA income.
  • If the person's income should not be counted according to the above rules, then their SSA income is excluded as well.