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Manual Title Virginia Medical Assistance Eligibility Chapter M04 Page Revision Date July 2024 Subchapter Subject Page ending with Page M04 MODIFIED ADJUSTED GROSS INCOME (MAGI) M0440.100 16 g. Effective January 1, 2019, alimony received is not countable. Alimony received prior to January 1, 2019, is countable. An individual whose divorce decree was finalized prior to January 1, 2019, has the option with the IRS to adopt the new IRS alimony rule by modifying the divorce agreement. If an individual whose divorce decree was finalized prior to January 1, 2019, does not want alimony received on or after January 1, 2019 to be countable for the MAGI income determination, the individual must provide a copy of the modified divorce agreement to the eligibility worker. h. An amount received as a lump sum is counted only in the month received i. Lottery and gambling winnings of $80,000 or greater, which are received in a single payout, are counted not only in the month received, but over a period of up to 120 months. Lottery winnings paid out in installments would be treated the same as other types of recurring income. Winnings less than $80,000 are counted in the month received; • Winnings of $80,000 but less than $90,000 are counted as income over two months, with an equal amount counted in each month; and • For every additional $10,000 one month is added to the period over which total winnings are divided, in equal installments, and counted as income. The maximum period of time over which winnings may be counted is 120 months, which would apply for winnings of $1,260,000 and above. The requirement to count qualified lottery and gambling winnings in household income over multiple months applies only to the individuals receiving the winnings. The determination of household income for other members of the individual’s household are not affected. Thus, for example, the total amount of qualified lottery or gambling winnings of a spouse or parent continues to count only in the month received in determining the eligibility of the other spouse and children. If the winner wishes to claim an “undue medical or financial hardship” exemption to counting the income after the first month, send the request to DMASEvaluation@dmas.virginia.gov. Military pay based upon age or years of service (other types of military pay are also counted and excluded; see M0720.290) j. Census income. k. RecognizeB5 Initiative and Incentive Payments issued to educators for their ongoing efforts to improve Virginia’s early childcare and education structure are counted. l. Unemployment Compensation is counted as unearned income. Exception: Additional benefits of $600 per week paid under the under the Federal Pandemic Unemployment Compensation program are not counted. See M0440.100 B.2.n. 2. Income That is Not Counted a. Child support received is not counted as income (it is not taxable income). b. Workers Compensation is not counted.

c. When a child or other dependent is included in a parent or stepparent’s household, the individual’s income is not countable as household income unless they are required to file taxes because the tax-filing threshold is met. Any Social Security benefits the individual may have do not count in determining whether the tax filing threshold is met.