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MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL Division of Welfare and Supportive Services APPENDIX H Medical Assistance Manual DETERMINING COUNTABLE 17 Jul 01 MTL 04/17 RSDI FOR MAGI BUDGETING SOCIAL SECURITY AND EQUIVALENT RAILROAD BENEFITS (See IRS Publication 915) Effective 1/1/2017 Are any RSDI / RR Benefits taxable and countable for MAGI budgeting? To find out whether any benefits may be taxable, compare the base amount for the individual’s filing status, with the total of: - One-half of the annualized RSDI / RRB (SSEB portion of tier 1) benefits, plus - All other income received by the individual, including tax-exempt interest. Exceptions: When determining the total income, do not reduce the total income by: - Interest from qualified U.S. savings bonds, - Employer-provided adoption benefits, - Foreign earned income or foreign housing, or - Income earned by bona fide residents of American Samoa or Puerto Rico. Children's benefits: These rules also apply to benefits received by children. Figuring total income: Worksheet A is used to calculate the total of one-half of RSDI / RRB benefits plus any other income. If the resulting total is more than the base amount for the individual, part of that individual’s RSDI / RRB benefits may be countable for MAGI. Married couples filing a joint tax return must combine their income and RSDI / RRB benefits together in determining if any benefits are taxable. Even if the spouse did not receive any RSDI / RRB benefits, the spouse's other income must be added to the total income to determine if any benefits are taxable. Base amount: The base amount is: - $25,000 if single, head of household, or qualifying widow(er); or; - $25,000 if married filing separately and lived apart from spouse for tax yea r; or - $32,000 if married filing jointly; or - $-0- if married filing separately and lived with spouse at any time during ta x year. Worksheet A: Worksheet A is attached below to help compare income with the base amount.