WAG 15-06-01-h
For 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. See WAG 25-03-02 (2) for monthly limits.
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Step 1
Is the person a child or stepchild (of any age) of another person in this EDG?
If yes, the rules below apply even if the person is also a tax dependent.
If not, go to Step 2.
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Step 2
Is the person a tax dependent not described in Step 1?
Or, is the person a child who is not the child of anyone in the HH?
If yes, the rules below apply.
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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 taxpayer is not included).
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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.
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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.