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§17-1724.2-4 adjusted gross income as defined in 26 C.F.R. §1.36B- 1 (e) (2). The Internal Revenue Service (IRS) Form 1040 is used as a guide to identify taxable income. (1) Income included in the MAGI-based determination includes the following: (A) Wages, salaries, tips, etc.; (B) Taxable interest; (C) Tax-exempt interest; (D) Ordinary dividends; (E) Qualified dividends; (F) Taxable refunds, credits, or offsets of state and local income taxes; (G) Alimony received; (H) Business income or (loss) ; (I) Capital gain or (loss); (J) Other gains or (losses); (K) Taxable amount of IRA distributions; (L) Taxable amount of pensions and annuities; (M) Rental real estate, royalties, partnerships, S corporations, trusts, etc.; (N) Farm income or (loss) ; (0) Unemployment compensation; (P) Taxable amount of social security benefits; and {Q) Other income. (2) Income excluded from the MAGI-based determination includes the following: (A) Child support; (B) Worker's compensation; (C) Veteran's benefits; and (D) Depreciation of business expenses. (3) Deductions allowed for the MAGI-based determination include the following: (A) Educator expenses; (B) Certain business expenses of reservists, performing artists, and fee-basis government officials; (C) Health savings account deduction; (D) Moving expenses; (E) Deductible part of self-employment tax; (F) Self-employed SEP (simplified employee pension), SIMPLE (savings incentive match plan for employees), and qualified plans; 1724.2-3 0206