Tax Relationship Claimed by Someone Outside the Home on a CIC

Due to a change in their household circumstances the participant may need to end their current tax filing status and add a new tax filing status.

If an individual is claimed as a tax dependent by a non-custodial parent or someone outside of the home they fall under non-filer rules. The following process must be followed to ensure the correct household composition is in MEDES

NOTE: When an IM-31a is sent out requesting the noncustodial parent’s name to report tax filing status for someone outside the home and they fail to respond; do not pend, deny or reject an application or case for the name of the non-custodial parent.

See: 3.6.4 MAGI Household Composition

Related Evidence: Tax Filing Status

TO ENTER TAX FILING STATUS FOR A HOUSEHOLD MEMBER CLAIMED BY SOMEONE OUTSIDE THE HOUSEHOLD.

If completing this task as part of a returned IM-1U, or if the case is Under Renewal, you must first follow steps to To Create a Manual Renewal and To Complete Manual Renewal.

Since this is a CIC you must first follow steps on the “End Tax Filing Status” and “End Current Tax Relationships” guide to end date these evidences the day before starting the new tax filing status on the participant that is being claimed by someone outside the home.

    1. From the Integrated Case page> Evidence sub-tab> Dashboard folder
    2. Hover cursor over Tax Filing Status hyperlink> Click Add Evidence
      1. Received Date: Enter the date the change was known/reported to FSD
      2. Case Participant(s)> Name> Click boxes next to each participant name for which you want to apply this tax filing status change
      3. Tax Filing Status: Click drop-down menu > Select the reported Tax Filing Status in this case it would be “Non-Filer”
      4. Name of tax filer outside household: List the name of the tax filer outside the household
      5. Relationship to tax filer outside household: Select the relationship to the tax filer outside household
      6. Start Date: Same as Received Date
      7. Comment: The comment must support why the individual was entered as different tax filing status than s/he attested. Note the case participant is a tax dependent of someone outside the home.
    3. Click Save

NOTE: There will not be a Tax Relationship to add because the dependent does not live in the tax-filer’s home. Please review case carefully when tax changes are made and make sure the household size is correct in the determinations.

    1. Complete Verifications
    2. Apply Changes, Review and Authorize Changes

NOTE: MEDES may generate an additional proposed determination, especially in cases with income changes, adding a person, or removing a person. If the system generated an additional proposed determination, you must Finalize Proposed Determinations again.

    1. Make a comment (Reference MEDES Notes and Comments) on the HoH Person Page to include:
      1. Change in Tax Relationships and Tax Filing Status
      2. Any Coverage Changes
    2. Review Notice Queue to make sure appropriate forms generated
      1. IM-80PRE: Generates in the event of coverage changes
      2. IM-80: Generates in the event of coverage changes
      3. IM-33C: Case Action Notice