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Division of Welfare and Supportive Services E-110.1 Medical Assistance Manual MAGI BUDGETING 23 Oct 01 MTL 04/23 Annual Income Guidelines for Children and Tax Dependents

Note: Married individuals with gross income of at least $5, whose spouse files a separate return with itemized deductions, are required to file a tax return.

e. Married person, 65 or older AND blind:

1. Has Earned Income only > $15,750

2. Has Unearned Income only > $3,950

3. Has combined income (earned and unearned) > $3,800; OR has

earned income (up to $12,550) plus $3,200 unearned income.

Note: Married individuals with gross income of at least $5, whose spouse files a separate return with itemized deductions, are required to file a tax return.

E-115 BUDGET PERIOD

Financial eligibility for applicants and ongoing beneficiaries must be based on current monthly income.

Current monthly income includes a best estimate of net earned income and any unearned income received regularly.

Note: When the application reflects a specific source of income has started or terminated in the application month, budget only the actual income received or expected to be received from that source in the application month.

E-120 EARNED INCOME

Earned income is cash received through salary, self-employment or tips, including wage advances, commissions, military pay, jury duty, on-the-job, honorarium payments and work assessment programs through Vocational Rehabilitation. Wage advances are budgeted when received and are deducted when the employer deducts them from gross pay. Note: meals included in the gross taxable income, are considered part of the earnings.

Determine the after tax net amount of all wages, salaries, and commissions by reducing the gross figure by any pre-tax deductions. Advanced EITC received with wages from an employer must be deducted from gross earnings.

Income earned in foreign currency, such as Canadian dollars or Mexican pesos, must be converted to U.S. dollars in order to determine what the actual earned income is. Use the exchange rate on the last day of the budget month, unless there is a dramatic change in the foreign exchange rate impacting the amount of the earnings.

E-120.1 Self-Employment

Annualize self-employment income intended for the household’s annual support, whether the income is received monthly or less often. This figure is used to determine the monthly