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Manual Title Chapter Page Revision Date Virginia Medical Assistance Eligibility M04 January 2025 Subchapter Subject Page ending with Page M04 MODIFIED ADJUSTED GROSS INCOME (MAGI) M0440.100 16a

d. Veterans benefits which are not taxable in IRS Publication 525 are not counted: • Education, training, and subsistence allowances, • Disability compensation and pension payments for disabilities paid either to veterans or their families, • Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death, • Grants for homes designed for wheelchair living and motor vehicles for veterans who lost their sight or the use of their limbs, • Interest on insurance dividends left on deposit with the VA, • Benefits under a dependent-care assistance program, • The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001, or • Payments made under the VA's compensated work therapy program. e. For divorce agreements finalized on or after January 1, 2019, no deduction is allowed for alimony paid. For divorce agreements finalized prior to January 1, 2019, alimony paid to a separated or former spouse outside the home is deducted from countable income. f. Interest paid on student loans is deducted from countable income. g. Gifts, inheritances, and proceeds from life insurance are not counted. h. A parsonage allowance is not counted. i. Scholarships, awards, or fellowship grants used for education purposes and not for living expenses are not counted. j. Student loans Effective January 1, 2019, student loan debt forgiven due to death or disability of student is not counted as income. Amounts that an employer paid in 2020 for an employee’s student loan principal and interest are not counted in the employee’s MAGI. k. Difficulty of Care Payments, which include (1) payments designated by the payer as compensation for providing additional care that is required for a physically, mentally or emotionally disabled qualified foster care individual living in the provider’s home and (2) payments to care providers (including parents providing personal care to a child) who provide care under a Medicaid home and-community-based Waiver to an individual in the care provider’s home. The care provider’s home is the residence in which the care provider resides and regularly performs the routines of the care provider’s life. If the care provider moves into an individual’s home to care for that individual and performs the routines of the care provider’s life in that residence, it is considered the care provider’s home. l. General Welfare Payments for Indian Tribes are not countable To qualify under the general welfare exclusion, the payments must be made pursuant to a governmental program for the promotion of the general welfare based on need and not represent compensation for services (See https://www.irs.gov/pub/irs- drop/n-12-75.pdf) m. Kinship Guardianship Payments are not income. These payments are a stipend paid to a relative caregiver who has assumed custody of a child as an alternative to that child remaining in foster care. n. Under the Federal Pandemic Unemployment Compensation Program, eligible individuals who are collecting certain Unemployment Compensation, including regular unemployment compensation, will receive an additional $600 in federal benefits per week for weeks of unemployment ending on or before July 31, 2020. The $600 weekly Pandemic Unemployment Compensation payments (monthly equivalent of $2,580) are not counted as income.