1. (a) An individual's income is counted as part of the household income unless:

   1. (1) the individual is a child who is included in the household of a parent and is not required to file a federal income tax return for the taxable year in which Medicaid eligibility is requested; or
   2. (2) the individual is a tax dependent and is not required to file a federal income tax return for the taxable year in which Medicaid eligibility is requested.
2. (b) Income of an individual described in subsection (a)(1) of this section is excluded from the household income of each individual in the household composition as defined in §366.1107 of this subchapter (relating to Determination of Household Composition).
3. (c) Income of an individual described in subsection (a)(2) of this section is excluded from the household income of the taxpayer.

Source Note:The provisions of this §366.1111 adopted to be effective January 1, 2014, 38 TexReg 9467.