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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200B – Income: MAGI Categories Page |138

Effective Month: July 2025

INCOME TREATMENT TYPE OF INCOME Trust income Counts as income Unearned Unemployment Compensation Payments count as income Unearned Workforce Investment Act (includes Job Training and Partnership Act or JTPA) Count wages of adults or a child if the requirement to file rule is applicable or child does not live with parent(s). Earned

200B.03.01 TREATMENT OF ALIMONY RECEIVED AND ALIMONY PAID The Tax Cuts and Jobs Act (P.L. 115-97) enacted tax law changes that affect MAGI income rules for receipt or payment of alimony for divorce agreements finalized after December 31, 2018.

For separation or divorce agreements finalized after 12/31/2018 and for pre-existing divorce agreements modified after 12/31/2018 if the modification specifically states the tax treatment of alimony payment is changed to the new tax law: • Alimony received is not income to the recipient. Child support continues to be income that does not count. • The 4-month extended Medicaid period is no longer applicable to recipients whose alimony is not countable as income. • Alimony paid is not deductible by the payer. Child support payments remain non-deductible. For separation or divorce agreements finalized on or before 12/31/2018: • Alimony received is income to the recipient for the duration of the agreement unless or until the agreement is modified to specifically state the tax treatment of the alimony is changed to the new tax law. Child support does not count as income to the recipient. • The 4-month extended Medicaid period applies to individuals terminated due to increased spousal support that counts as income. • Alimony paid is deducted from the income of the payer. Child support is non- deductible.