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Title 8: Medicaid Page 8 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Income Policies for Non-MAGI-Related Coverage… Revised April 11, 2025 Deeming Non-MAGI-Related Income 4. Combine the applicant’s unearned income and the ineligible spouse’s remaining unearned income. 5. Combine the applicant’s earned income and the ineligible spouse’s remaining earned income. 6. If a $20 general income deduction is applicable to the coverage group being examined, subtract it first from the total countable unearned income. If the total countable unearned income is less than $20, subtract any unused portion of the $20 deduction from the total countable earned income, if any. 7. From the remaining earned income, subtract the impairment-related work expenses, the $65 work expense, and one-half of the remainder. 8. Add the earned and unearned income together to get the total countable income. If the total countable income is less than the payment standard for a couple when at home, the applicant is eligible. The applicant’s SSI benefit will be the lesser of:  The SSI benefit rate for an individual minus the applicant’s own income, or  The SSI benefit rate for a couple minus the couple’s income.