POL M905: INCOME DISREGARDS/DEDUCTIONS

1. Allow A 5% FPL Income Disregard For MAGI Programs When It Would Make A Difference In Eligibility.

2. Allow Tax Deductible Adjustments To Income For MAGI Programs

Deductions and adjustments include:

• • Alimony paid to someone else for agreements finalized on or before December 31, 2018.

  • Student loan interest paid

  • Certain educator expenses

  • Most contributions to individual retirement arrangements (IRAs)

  • Penalties on the early withdrawal of savings

  • Certain tuition and fees

  • Health savings account contributions

  • Certain business expenses not included in net income

  • Net operating loss

  • Other adjustments to gross income on IRS 1040 form lines 23-35

  • Moving expenses for Active Duty Military members that are ordered to move or change duty stations.

3. Do Not Include Credits And Deductions Listed On Page 2 Of IRS Form 1040 For MAGI Programs:

• • The standard deduction

  • Itemized deductions detailed in Schedule A

  • Child tax credit

4. Some Business Expenses May Be Deducted From Gross Self-Employment Income

Refer to M902 for Treatment of Self-Employment Income.

5. Allow The Following Deductions For The Medicare Savings Programs And Supplement Security Income (SSI) Program When Calculating Income:

• • $20 unearned income deduction per assistance unit

  • $65 plus one-half of the remaining earned income is deducted for each working individual.

  • Blind or impairment related work deduction for items or services directly related to assuring the blind/disabled individual can work.

  • Dependent deduction for each ineligible child. Refer to Medicaid Table 1A, for the dependent deduction.

  • Support payment deduction when there is a court order or state agreement under Title IV-D, and the payment is made by the ineligible spouse, ineligible parent, or ineligible child. Deduct either:

    • The amount specified in the court order or agreement.

    • The actual amount paid when less.

OR

• • • The actual amount paid when more if the excess amount is for averages.