818 MAGI Medicaid Income
Countable income for MAGI Medicaid is determined following IRS rules for countable income and deductions with some exceptions. MAGI is the household's AGI, or Adjusted Gross Income with the addition of the following: tax-exempt interest, Social Security benefits not included in the gross income, and excluded foreign income.
Once the individual's MAGI Medicaid household has been determined using the chart in section 817-1, DPA can determine the total MAGI Medicaid income for the individual. The countable income of the individual and individual's household members determines the total countable income for the individual.
Note:
Income for a tax dependent of any age does not count for the household unless it is over the tax filing threshold. Even if the tax dependent chooses to file taxes, if their income is under the threshold it is not counted for MAGI Medicaid.
When using non-filer rules, a child's income is excluded unless it is above the tax filing threshold.
In 2023, the tax filing threshold for tax dependents is $13,850 per year for earned income, $1,250 per year for unearned income, or a combination totaling over $13,450 earned plus $400 unearned.
1. Add all taxable income (such as wages, self-employment, interest, dividends, rental and royalty income, capital gains, unemployment, alimony, etc.),
2. Add the non-taxable social security benefits, foreign income, and tax exempt interest (such as employee savings bonds) into the calculation, and
3. Subtract allowable tax deductions (such as moving expenses, alimony paid, etc.)
4. The result is the total MAGI Medicaid income for the individual.
Reference Addendum 3 to determine if income types are countable for MAGI Medicaid. Reference Addendum 4 for MAGI Income deductions.
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