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E-135.1 Division of Welfare and Supportive Services MAGI BUDGETING Medical Assistance Manual Allowable Deductions 22 Jul 01 MTL 03/22 Student Tuition Deduction for Qualified Educational Expenses. Not available for tax year 2021 Moving Expenses for members of the Armed Forces Deductions for members of the Armed Forces on active duty and due to a permanent military order move. Variable Spousal Support/Alimony Deduction for court ordered spousal support/ alimony with a court order date prior to 1/1/2019 (per Tax Cuts and Jobs Act 2017). Variable

After-tax contributions are contributions from income (other than ROTH contributions), that an employee must include as income on their taxes. If a retirement plan allows after-tax contributions, those contributions are not excluded from income. After-tax contributions are not an allowable deduction in MAGI current monthly or APTC annual income budgeting.

After-tax contributions may include but are not limited to:

• Public Employees Retirement System (PERS) contributions made by the employee.

Allowable deductions will not reduce the countable amount of RSDI benefits received by any household members.

Example: Client reports self-employment income loss of $3,000.00 and RSDI income of $1,022.00. The current monthly income budget would be $1,022.00.

E-140 STEP-BY-STEP ASSISTANCE UNIT AND INCOME DETERMINATION

E-140.1 Construct a Medicaid/NCU Assistance Unit for Each Applicant

a. Does the individual expect to file taxes? 1. If no – continue to step b 2. If yes – does the individual expect to be claimed as a tax dependent by anyone else? a) If no – the assistance unit consists of the tax-filer, a spouse living with the tax-filer, and all persons whom the tax-filer expects to claim as a tax dependent. b) If yes – continue to step b.

b. Does the individual expect to be claimed as a tax dependent?

i. If no – continue to step c

ii. If yes – does the individual meet any of the following exceptions? a) The individual expects to be claimed as a tax dependent of someone other than a spouse or a biological, adopted, or step parent.

b) The individual is a child under age 19 living with both parents, but the parents do not expect to file a joint tax return.