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Title 8: Medicaid Page 73 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Non-MAGI-Related Deductions Revised April 11, 2025 Deduction for Work Expenses for the Blind • Safety shoes and uniforms and the care of them. • Income taxes (federal, state, local) and FICA self-employment taxes. • A wheelchair if necessary due to other disabilities. The amount deducted cannot be more than the amount of earned income for the period. Do not carry unused deductions over to another quarter. The client must keep records of work expenses and verify the expenses. If transportation and meal expenses appear reasonable, accept them without verification. Deduction for Plan for Achieving Self-Support Legal reference: 20 CFR 416.1112, 20 CFR 416.1180, 20 CFR 416.1181, Deduct the income of a blind or disabled client under the age of 65 if that income is needed to fulfill a Plan for Achieving Self-Support (PASS). People 65 or over get this deduction only if they were receiving SSI-related eligibility because of blindness or disability in the month before they turned 65. Check the SDX when a client states that a plan for achieving self-support exists. When other clients have a plan, it is verified by the social worker. Subtract the income deduction for a PASS from a client’s countable income after all other applicable deductions, such as the $20 general income deduction and the $65 and 1/2 deduction. Income Policies for MAGI-Related Coverage Groups Legal reference: 42 CFR 435.603, 441 IAC 75 (Rules in Process) Definitions Legal reference: 441 IAC 75 (Rules in Process) “Modified Adjusted Gross Income” means the tax-based methodology to determine income eligibility and household size for family-related and other coverage groups. It is also known under the acronym “MAGI.”