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Manual Title Chapter Page Revision Date Virginia Medical Assistance Eligibility M04 July 2025 Subchapter Subject Page ending with Page M04 MODIFIED ADJUSTED GROSS INCOME (MAGI) M0440.100 15

The reported income of a child must be verified regardless of whether or not the attested income is above or below the tax-filing threshold amount.

If an income calculation must be made, use the information in subchapter M0710 for estimating income, subchapter M0720 for sources of earned income, and subchapter M0730 for sources of unearned income with the exceptions in B. below. The sources of income listed in this section are organized in table form in M04, Appendix 8. B. MAGI Income Rules 1. Income That is a. Gross earned income is counted. There are no earned income disregards. Counted

b. Earnings and unearned income, including Social Security benefits, of everyone in the household are counted, except the income of • a tax dependent of any age regardless of relation to the tax-filer who is not required to file taxes because the tax filing threshold is not met or • a child under 19 in a non-filer household who is living with a parent or parents For children and tax dependents, Social Security income only counts toward the total household income if the child or tax dependent is required to file their own federal tax return. Tax dependents claimed by someone other than a parent have their MAGI household determined using non-filer rules. For these individuals, income excluded from the tax-filer's household income may still be included in the tax- dependent's household income. c. Income of a tax dependent or of a child under 19 in a non-filer household living with a parent or parents the individual’s income is not countable as household income unless the tax dependent is required to file taxes because the tax-filing threshold is met. Any Social Security benefits received by the dependent individual may have do not count in determining whether the tax filing threshold is met. Effective, January 1, 2024, the Tax Filing Threshold for MAGI income counting purposes for individuals under 65 is $1,300 in unearned income and $14,600 in earned income. Social Security benefits do not count as unearned income in determining whether the tax filing threshold is met. If the dependent is married, 65 or over or blind, please see 2024 Publication 501 (irs.gov)

d. Interest, including tax-exempt interest, is counted.

e. Foreign income is counted. f. Stepparent income is counted