Tax Dependency

The following rules apply:

• Any child aged 20 or younger who is not blind or disabled living with his/her parents whether or not claimed as a tax dependent, and regardless of marital status, is considered to be a child.
• If a child under 18 years of age is claimed as a tax dependent by absent parents, parental responsibility is limited to the actual parental contributions from the absent parent, which must be counted as available to the child.
• Emancipation status has no bearing on any Medi-Cal determination.
• A deprived child who is living away from home and does not plan to return to the parent’s home state cannot provide linkage to parents even if he/she is claimed as a tax dependent. However, if the deprived child intends to return to his/her parent’s home, linkage can be established for the parents.
• Tax dependency must be explored for the following:
  • Any persons 18 to 21 years of age, living away from home.
  • Any persons under 18 years of age living away from home.
  • Minor parents, living away from home.
  • Children living with a caretaker relative or legal guardian.
• Tax dependency requirements DO NOT apply to any child applying for Medi-Cal under Minor Consent Services.

Determining Maintenance Need Level

To determine a Maintenance Need level when a family includes a tax dependent child(ren) living away from home, use the following steps:

1. Determine the maintenance need for the parent's household.
2. Determine the maintenance need for the child's household.
3. Add the two or more maintenance needs. This is the total maintenance need for the entire MFBU.

Example #1Example #1

Example #2Example #2

Individuals 18-21 Years of Age

Living at Home

Any person 18 to 21 years of age (not blind or disabled) living at home is considered a child in the MFBU, regardless of marital status or tax dependency status (or whether or not they have been emancipated).

• The parent(s) with whom the child lives is the responsible relative.
• The child must be included in the parent's MFBU.

In a situation where an 18-21 year old lives with one parent but is claimed by the absent parent for income tax purposes, both parents are responsible relatives.

• The absent parent must be included as an ineligible member of the MFBU and his/her income and property considered in the eligibility determination.
• The parent, who is applying for the child and who states that the child is claimed as a tax dependent by the absent parent, must be able to give the Eligibility Worker (EW) enough information for the EW to contact the absent parent to obtain information required to determine eligibility.

If the absent parent has remarried and wishes to apply for their present family:

• That parent would be a member of both their present family's MFBU and the former family's MFBU.
• The absent parent's income would be counted in both MFBUs.
• Eligibility would need to be determined for individuals in each MFBU according to current regulations.

Living Away from Home

A unmarried/married, divorced or separated individual 18-21 years of age living away from home and claimed as a tax dependent by a parent(s) is considered a child. The claiming parent(s) is the responsible relative.The child is ineligible to receive MC on his/her own case. Advise the child that the parent(s) must apply for MC for him/her.

Exception: The child may have an MC case in California if parents live out of state. The parent(s) and any siblings would be ineligible members in the child's MFBU.

Parent Lives in California

A child 18-21 years of age determined to be claimed a tax dependent by his/her parent, must be included in the claiming parent's MFBU. There is one MFBU, even though the child and parent live apart.

The county of responsibility for determining MC for a family which includes a child 18-21 years of age living away from home, who is claimed by the parent as a tax dependent, will be:

• The county in which the family's residence is located.
• The county of the child's physical presence if the family's residence is unclear.

Parent Lives Out of California

If the parent(s) of an 18-21 year old tax dependent child lives in another State, the MC application is processed by the county where the child resides.

Advise the child whose parent(s) live out of state that the application documents can be forwarded to the parent if they wish to pursue the request for MC. When the application is submitted:

• The parent(s) must respond within the time limits required by the application or redetermination process.
• If the parent(s) does not respond in time, the application must be denied or MC discontinued, unless good cause for the delay exists.

Note: The unmarried/married, divorced or separated individual 18-21 years of age living away from home and not claimed as a tax dependent by parent(s) is considered an adult. The individual's MC application is processed as requested.

Individuals Under 18 Years of Age

Living at Home

Any individual under 18 years of age living at home is considered a child in the MFBU.

• The parent(s) with whom the child lives is the responsible relative.
• The child must be included in the parent's MFBU.

Living Away from Home

An individual under 18 years of age living away from home and handling all of his/her financial affairs (whether or not claimed as a tax dependent) is considered an adult.

• He/she will be in his/her own MFBU.
• Parental responsibility does not apply, even if claimed as a tax dependent by parents. Only actual parental contributions are included as available income.

An individual under 18 years of age living away from home, with a parent, caretaker relative or legal guardian handling some or all of the minor's financial affairs is considered a child.

• The individual who is handling the child's financial affairs must apply for MC on the child's behalf.
• There is no parental responsibility when a caretaker relative claims a child as a tax dependent. Parental responsibility only extends to the parent (natural or adoptive) of the child.

Related Topics

Non-MAGI Linkage