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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200B – Income: MAGI Categories Page |129
Effective Month: July 2025
200B.01.04 EXCEPTIONS TO IRS INCOME RULES FOR MAGI PURPOSES The following are exceptions or modifications to federal tax rules that apply to MAGI based income. 200B.01.04A LUMP SUM PAYMENTS Lump sum payments, whether recurring or non-recurring, count as income in the month of receipt. This is true for non-work-related lump sum payments that otherwise count as income, such as periodic land lease payments, cash awards, Choctaw casino bonus payments, etc. The exception is “Qualified Lottery and Gambling Winnings” described below in 200B.01.04D. If the lump sum payment is work-related, such as bonus or commission payments, it is treated as work-related wages, discussed in 200B.03.02, Specific Income Treatment – Work Related Lump Sum Payments. 200B.01.04B EDUCATIONAL SCHOLARSHIPS, AWARDS OR FELLOWSHIP GRANTS Education scholarships, awards or fellowship grants used for education purposes and not for living expenses are excluded from income. Amounts used for room and board are not excluded and count as income. 200B.01.04C CERTAIN AMERICAN INDIAN/ALASKA NATIVE INCOME EXCLUSIONS Certain income derived from American Indian and Alaska Native sources are excluded from income. Income that is excluded includes: 1. Distributions from Alaska Native Corporations and Settlement Trusts. 2. Distributions from any property held in trust, subject to Federal restrictions, located within the most recent boundaries of a prior Federal reservation, or otherwise under the supervision of the Secretary of the Interior. 3. Distributions and payments from rents, leases, rights of way, royalties, usage rights, or natural resource extractions and harvest from: o Rights of ownership or possession in any lands described in #2 above, or, o Federally protected rights regarding off-reservation hunting, fishing, gathering or usage of natural resources. 4. Distributions resulting from real property ownership interests related to natural resources and improvements located on or near a reservation or within the