In most situations when a child age 18 or younger lives with their parents, their parents' are included in the child's EDG and their income is counted toward the child's eligibility. This is true when using:
- tax filer rules when the parent/stepparent claims their child as a dependent, or
- when relationship rules are used.
Tax Filers Under Age 19 Who Are Not Tax Dependents
Under the 3 step process described in PM 15-06-01-f, tax filers who are not claimed as a dependent by another person stop at Step 1. Their EDG includes only the persons in their own tax unit, and their spouse who lives with them if married. This is true for tax filers of any age.
Example 1: An employed 18 year old is living with employed Mom. The application says they will both file their own taxes and neither one is being claimed as a tax dependent. Tax filer rules apply. They each have their own EDGs, and only their own income is budgeted in each EDG.
Example 2: Same family, they don't know if they will file taxes. Relationship rules apply and they are in each other's EDGs (both have a 2 person EDG.) Mom's income is budgeted on both EDGs.
Example 3: Same family, application says Mom will file taxes and claim 18 year as a dependent. Tax filer rules apply and they are in each other's EDGs (both have a 2 person EDG.) Mom's income is budgeted on both EDGs.
Note: An 18 year old who has a disability and is claimed as a dependent on his parent's income tax may be financially ineligible for FHP due to the parent's income. In this situation, determine eligibility under AABD for the 18 year old.