(a) Individual income is counted as part of the household income unless:
  (1) the individual is a child who is included in the household composition 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) 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.
(b) Individual income 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).
(c) Individual income 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; amended to be effective June 1, 2014, 39 TexReg 3981