6) Loan Expenses (Non-MAGI programs only)

The customer and spouse have a mortgage on their farm. The customer is now applying for ALTCS. They give tax documents for the farm as proof of income. The mortgage payments are entered as an expense on the tax documents. For ALTCS, and other Non-MAGI programs, the interest paid on the mortgage is deducted from the income. Payment of the loan principal is not deducted from the income when determining the budget group’s countable income.