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MEDICAL SERVICES POLICY MANUAL,SECTION E E-200 Determining Financial Eligibility Under the MAGI Methodology

E 262 Income Excluded for the Families and Individuals Group

rated winnings only count for the individual receiving income; NOTE: Individuals who receive lottery and gambling winnings may request an undue hardship exception to avoid a penalty. Please see MS E-269; 11. Any portion of educationalscholarships, awards, or fellowship grants used for living expenses; or 12. Student Loan Debt that hasbeen “forgiven” unless it was due to deathor permanent disability). If an individual received income from a source not listed above and did file a tax return for the tax year in which the income was received, the income will be considered for Medicaid purposes if it was reported as taxable income for that tax year. If the income was excluded from taxes, it will be excluded for Medicaid purposes. If the individual did not file a tax return for the applicable tax year, then a determination must be made as to whether the income will be taxable or not.

E-262 Income Excluded for the Families and Individual Groups MS Manual 08/03/2020 Although not an exhaustive list, the following examples of income that are excluded as taxable income for federal income tax purposes, and therefore are excluded as countable income for Medicaid purposes: 1. Child Support 2. Contributions 3. Worker’s Compensation 4. Veteran’s Benefits 5. Educational grants: Pell Grant, the Federal Supplemental Educational Opportunity Grant (FSEOG), the State Student Income Grant (SSIG) and college work study. 6. American Indian/Alaska Native 7. Public Assistance Benefits, such as Transitional Employment Assistance (TEA) or Supplemental Security Income (SSI) 8. Disaster Relief Payments 9. Gifts 10. Federal Tax Refunds 11. Alimony: divorces and separations finalized on or after January 1, 2019. 12. Moving Expenses (Active Military Duty only) 13. Outreach and Enrollment Grants 14. Combat pay for military personnel