7) Loan Expenses (MAGI programs only)

The customer owns and operates a small cafe. The business has a mortgage for the land and the building. The customer applies for Medical Assistance in the Adult program. The customer gives tax forms as proof of income. The mortgage is entered as an expense. For Adult and MAGI programs, the full amount of the expense paid for the mortgage is allowed. Both principal and interest are deducted from the income when determining the budget group’s countable income.