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Manual Title Chapter Page Revision Date Virginia Medical Assistance Eligibility M04 October 2018 Subchapter Subject Page ending with Page M04 MODIFIED ADJUSTED GROSS INCOME (MAGI) M0440.100 17

Business expenses are expenses directly related to producing goods or services and without which the goods or services could not be produced. Allowable business expenses include, but are not limited to, the following: • payments on the interest of the purchase price of, and loans for, capital assets such as real property, equipment, machinery and other goods of a durable nature; • insurance premiums; • legal fees; • expenses for routine maintenance and repairs; • advertising costs; • bookkeeping costs. • depreciation and capital losses. If the losses exceed income, the resulting negative dollar amount offsets other countable income. Expenses that are not deducted for MAGI purposes include the following: payments on the principal of the purchase price of, and loans for, capital assets, such as real property, equipment, machinery and other goods of a durable nature; the principal and interest on loans for capital improvements of real property; net losses from previous periods; federal, state, and local taxes; personal expenses, entertainment expenses, and personal transportation; and money set aside for retirement purposes. 4. Private Accident/Health Plan Benefits Private accident, health plan, and disability benefits are benefits paid from a plan provided by an employer or purchased by the individual. Social Security benefits and Supplemental Security Income (SSI) are not private benefits. Benefits received for personal injury or sickness through an accident or health plan that is paid for by an employer are countable income. If the individual pays the entire cost of the accident or health plan, benefits received from the plan are NOT income. If both the employer and the individual pay for the plan, only the benefits received through the employer’s payments are income. 5. American Indian-Alaska Native Payments In addition, the following payments to American Indian/Alaska Natives are not counted as income: a. distributions received from the Alaska Native Corporations and Settlement Trusts (Public Law 100-241), b. distributions from any property held in trust, subject to Federal restrictions, located within the most recent boundaries of a prior Federal reservation, or otherwise under the Supervision of the Interior,