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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200B – Income: MAGI Categories Page |137

Effective Month: July 2025

INCOME TREATMENT TYPE OF INCOME Minister’s Income Determine if minister files taxes as a self- employed person. If yes, income includes salary, allowances, fees and honoraria. Deduct allowable operational expenses claimed as tax deductions to obtain net income. Earned Peace Corps Living allowance designated as “basic” compensation, leave allowances, allowance paid to spouse/children while volunteer is in volunteer leader training in the U.S. and readjustment allowances, or termination payments are considered taxable wages. Living allowance received by the volunteer is not counted as income. Earned Pensions/Retirement benefits, including RSDI (Social Security) and Railroad Retirement benefits Payments count as income except for benefits received by a child who is not required to file, as appropriate. Retroactive payments count as income in the month of receipt if the payment has not been otherwise counted (as monthly income) for the same time period. Unearned Prizes, Awards Counts as income Unearned Rental Income Count net rental income after allowing all IRS allowed deductions for rental income. Earned/Unearned (as appropriate) Roomer/Boarder Income Individuals who take in boarders or operate commercial boarding homes are considered self-employed. When an individual rents part of his property, deductible rental expenses allowed by the IRS may be deducted from the rental income. Earned/Unearned (as appropriate) Self-Employment Net Earnings from Self-Employment (NESE) is the gross income from a trade or business minus the allowable IRS operational expenses for that activity. Earned