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Louisiana Medicaid Eligibility Manual Eligibility Factors

Issued January 7, 2026 Page 21 of I-1550 Replacing November 13, 2025

Revised/added text indicated by underscore Deleted text indicated by “**”

Exclude the income when the child’s or tax dependent’s income is below the tax filing threshold. Refer to Z-500 Filing Requirements for Children and Tax Dependents for more information about the tax filing threshold.

When determining the total household income of a child who is not living with a parent (i.e., a grandchild living with a grandparent), the child’s MAGI-based income is always counted in determining the child’s eligibility, even if the child’s income is below the tax filing threshold.

When determining the total household income of a tax dependent who is claimed by someone other than a parent, the tax dependent’s MAGI- based income is always counted in determining the tax dependent’s own eligibility even if the income is below the tax filing threshold.

Example: Marty expects to claim his adult son, Mark (age 22), who is a full- time student, as a tax dependent. Marty makes $1,500 a month. Mark makes $400 a month working as a waiter. Marty and Mark will be included in each other’s MAGI-based households. Mark’s income does not meet the tax filing threshold and is excluded from the total household income.

Example: Mary expects to claim her father, Matthew (age 61), as a tax dependent. Mary earns $2,500 a month in wages. Matthew earns $450 a month from his part-time job. Mary’s MAGI-based household will include herself and Matthew. Matthew’s income does not meet the tax filing threshold and is excluded from the total household income.

Matthew’s MAGI-based household will include only himself since he meets an exception to the tax dependent rules for being claimed as a tax dependent by someone other than his spouse or his parent. Matthew’s income is included regardless of whether it meets the tax filing threshold.

I-1554.5 Allowable Tax Deductions for MAGI

MAGI budgeting rules require the use of current monthly income in the