Case Study 1: Household Income
David and Melinda are Married Filing Jointly taxpayers. They have one child, Philip, age 17, whom they claim as a dependent. Philip works part time and has a filing requirement. David and Melinda's household income calculation would include their modified adjusted gross income, as well as Philip's modified adjusted gross income.
A Taxpayers' household income is the total of the taxpayers' modified adjusted gross income (MAGI) of all dependents required to file a federal income tax return because their income meets the filing threshold.