1. (a) To determine household composition, an individual is designated as:

   1. (1) a taxpayer;
   2. (2) a tax dependent who does not meet any exceptions;
   3. (3) a tax dependent who meets one or more of the exceptions; or
   4. (4) not a taxpayer or tax dependent.

2. (b) If the individual is a taxpayer, the following individuals are included in the taxpayer's household composition:

   1. (1) the taxpayer;
   2. (2) the taxpayer's spouse, if the taxpayer and the spouse live together;
   3. (3) the taxpayer's spouse, if the taxpayer and spouse file a joint federal income tax return; and
   4. (4) any individual the taxpayer expects to claim as a tax dependent for the taxable year in which CHIP eligibility is requested.

3. (c) If the individual is a tax dependent, the following individuals are included in the tax dependent's household composition:

   1. (1) the tax dependent;
   2. (2) the taxpayer's household claiming the tax dependent; and
   3. (3) the tax dependent's spouse, if the tax dependent and the spouse live together.

4. (d) The rules in subsection (e) of this section apply to a tax dependent who:

   1. (1) is not the taxpayer's spouse or the taxpayer's child;
   2. (2) is a child who lives with both parents whose parents did not file a joint federal income tax return and was claimed as a tax dependent by one parent; or
   3. (3) is a child who is claimed as a tax dependent by a non-custodial parent pursuant to 42 CFR §435.603(f)(2).

5. (e) The household composition of an individual who is not a taxpayer or a tax dependent includes:

   1. (1) the individual;
   2. (2) the individual's spouse;
   3. (3) the individual's children; and
   4. (4) if the individual is a child, the individual's parents and siblings.
6. (f) A spouse is included in an individual's household composition if living together or filing a joint federal income tax return.
7. (g) Subsection (c) of this section applies to an individual who is both a tax dependent and taxpayer.
8. (h) The number of unborn children a pregnant individual is expected to deliver is included in the household composition of that pregnant individual or an applicant under §370.401 of this chapter (relating to Perinates).

Source Note:The provisions of this §370.807 adopted to be effective January 1, 2014, 38 TexReg 9477; amended to be effective June 1, 2014, 39 TexReg 3983; amended to be effective November 20, 2016, 41 TexReg 9008.