A MAGI Budget Group Examples

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These examples are divided into five groups based on taxpayer or tax dependent status and age:

Taxpayer Budget Group
Tax Dependent Under Age 19 Budget Group
Tax Dependent Age 19 or Older Budget Group
Not a Taxpayer or Tax Dependent (under age 19) Budget Group
Not a Taxpayer or Tax Dependent (age 19 or older) Budget Group

Each section includes budget group examples only for the person in the scenario that meets the rules for that section. The location of any examples for other people in the scenario is listed at the end of the scenario.

Taxpayer Budget Group Examples

1) Married taxpayer filing a joint return

The customers are married but recently separated and are not living together. They have two children. The son is 15 years old and lives with his father. The daughter is 8 years old and lives with her mother. The customers plan to file a joint tax return for the current year and claim both children as tax dependents. (See Example #4 for the son’s and daughter’s budget groups)

The Budget Group for…	Includes…
Father	Self Mother (joint filer) Son (his tax dependent) Daughter (his tax dependent)
Mother	Self Father (joint filer) Son (her tax dependent) Daughter (her tax dependent)

2) Married taxpayer filing separate return

The customer and the spouse are married and live together with their 5-year old son. They plan to file separate tax returns this year. The spouse will claim the son as a tax dependent. (See Example #9 for the son’s budget group)

The Budget Group for…	Includes…
Customer	Self Spouse (living in the same home)
Spouse	Self Spouse (living in the same home) Son (her tax dependent)

3) Unmarried taxpayer claiming dependents

The customer is divorced and lives alone. He plans to file a tax return for the current year and will claim his 12-year old son as a tax dependent as allowed by the divorce decree. The son lives with his mother in Colorado..

The Budget Group for…	Includes…
Customer	Self Son (his tax dependent)

Tax Dependent Under Age 19 Budget Group Examples

4) Tax dependent - Example 1

The Budget Group for…	Includes…
Son	Self Father (taxpayer claiming him) Mother (taxpayer claiming him) Daughter (other tax dependent claimed by taxpayers)
Daughter	Self Father (taxpayer claiming her) Mother (taxpayer claiming her) Son (other tax dependent claimed by taxpayers)

5) Tax dependent - Example 2

The customer lives with her 2-year old son and her 8-year old nephew. She plans to file a return for the current year and will claim both her son and her nephew as a tax dependent. The customer is only applying for her son. Her nephew already has coverage through the ALTCS program.

The Budget Group for…	Includes…
Customer's son	Self Customer’s mother (taxpayer claiming him) Mother’s nephew (other tax dependent claimed by taxpayer)

Tax Dependent Age 19 or Older Budget Group Example

6) Tax dependent over age 19

The customer, her 20-year old daughter and the daughter’s 1-year old son live together. The customer plans to file a tax return for the current year and will claim her daughter as a tax dependent. The daughter’s son will be claimed by his father who lives in another state. (See Example #8 for the daughter’s son’s budget group)

The Budget Group for…	Includes…
Daughter	Self Daughter's mother (taxpayer claiming her)

Not a Taxpayer or Tax Dependent (under age 19) Budget Group Examples

The following provide examples of budget groups for people who are not taxpayers, are not claimed as a tax dependent, or ARE claimed as tax dependents but meet an exception from using tax dependent rules.

7) Not a taxpayer or claimed as a tax dependent

The customer, age 17, lives with his mother, his step-father, his 21-year old brother, and the brother’s 2-year old daughter. No one in the home plans to file a tax return for the current year, and no one is claimed as a tax dependent by someone else.

The Budget Group for…	Includes…
Customer	Self Customer’s mother Customer’s step-father

8) Lives with a parent, but claimed as a tax dependent by a non-custodial parent.

The Budget Group for…	Includes…
Son	Self Son's mother

9) Claimed as a tax dependent by one parent, but living with more than one parent.

The customers are married and live together with their 5-year old son. They plan to file separate tax returns this year. The mother will claim the son as a tax dependent. (See Example #2 for the parents’ budget groups)

The Budget Group for…	Includes…
Son	Self Mother Father

10) Claimed as a tax dependent by someone other than a spouse or parent.

The customer lives with her 5-year old granddaughter. The customer plans to file a tax return for the current year and will claim the granddaughter as a dependent.

The Budget Group for…	Includes…
Granddaughter	Self

Not a Taxpayer or Tax Dependent (age 19 or older) Budget Group Examples

11) Not a taxpayer or claimed as a tax dependent

The customer and his partner are both over 19 years old and are not married. They live together along with the partner’s 12-year old son. No one plans to file a tax return for the current year, nor will they be claimed as dependents by someone else.

The Budget Group for…	Includes…
Son	Self
Mother	Self Mother's son

12) Claimed as a tax dependent by someone other than a spouse or parent.

The customer is 63 years old and lives with her adult daughter. The adult daughter plans to file a tax return for the current year and will claim the customer as a dependent.

The Budget Group for…	Includes…
Customer	Self

13) Pregnant Woman Budget Group

The customer is pregnant and lives with her daughter.

The Budget Group for…	Includes…
Customer	Self Daughter Unborn Child
Customer's daughter	Self Mother