Page 87

Title 8: Medicaid Page 82 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Income Policies for MAGI-Related Coverage… Revised April 11, 2025 Countable Income Under MAGI Allowable Expenses Expenses that are allowed as deductions from gross income when determining a person’s adjusted gross income for federal tax purposes are subtracted from gross income as defined in Gross Countable Income and Income Types Excluded From Gross Income when determining countable income under MAGI-related Medicaid. These expenses can be claimed by individuals whether or not they plan to file a tax return. Allowable expenses include:  Educator expenses;  Certain business expenses of reservists, performing artists, and fee-based government officials;  Health savings account contributions;  Moving expenses;  Deductible part of self-employment tax;  Contributions to self-employed Simplified Employee Pension (SEP), Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) and Qualified Plans;  Self-employed health insurance contributions;  Amount of penalty for early withdrawal of savings;  Alimony payments;  Certain Individual Retirement Account (IRA) contributions;  Student loan interest expense;  Qualified domestic production activities deduction;  Expenses directly related with the conduct of a self-employment trade or business, including but not limited to depreciation and capital losses;  Pre-tax contributions.