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268 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility 7. The deemed income is then added to each applying child’s other countable income. Deductions are then taken and compared to the OSIPM non-SSI income standard for one person. See here for EPD Long-Term Care (LTC) services use standard deductions, medical costs and other expenses when calculating the adjusted income to determine the patient liability. See here for more information on LTC deductions. HSD MAGI Deductions Certain tax deductions allowable under IRS can be deducted from countable MAGI-based and MAGI income. These deductions are excluded from countable MAGI-based and MAGI income before comparing the income to the applicable MAGI Income Standard to determine financial eligibility. Examples of allowable tax deductions according to the IRS include: • Educator expenses • Certain business expenses or reservists, performing artists, and fee-basis government officials • Health savings account deductions • Moving expenses for military service members • Deductible part of self-employment tax • Self-employed SEP, SIMPLE, and qualified plans • Self-employed health insurance deductions • Penalty of early withdrawal of savings • Alimony paid (if the divorce was finalized after 01/01/2019 the income is not counted for MAGI. The income is still added to the case, but should be added as a MAGI Deduction to be excluded for MAGI) • Traditional IRA contributions • Student loan interest • Tuition and fees (paid out-of-pocket, not with educational scholarships, awards, or fellowships) • Domestic production activities If an applicant has questions about whether they can claim a tax deduction, they should speak with a tax preparer/ advisor. Allowable tax deductions for MAGI are coded on the MAGI Deductions screen in ONE, after answering ‘Yes’ to the applicable question on the Expense Gatepost screen. MAGI eligibility determinations will only consider those deductions coded on the MAGI Deductions screen when determining financial eligibility for MAGI programs. Note: Some tax deductions for MAGI are also coded as expenses for other programs (i.e. self-employment expenses) and so need to be entered twice in ONE in separate places: as an expense and as a MAGI deduction. Not all allowable tax deductions are available to select from in ONE. When a deduction is reported and not available as a drop-down to select from, select “Other Allowable Tax Deduction/Expense” and enter a case note with details