Page 56

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) Appendix 8 1 TREATMENT OF INCOME FOR FAMILIES & CHILDREN COVERED GROUPS

INCOME MAGI COVERED GROUPS MEDICALLY NEEDY; 300% SSI; F&C COVERED GROUPS Difficulty of Care Payments Not counted Counted with appropriate earned income disregards Earnings Counted with no disregards Counted with appropriate earned income disregards Social Security Benefits Adult’s MAGI household Benefits received by a parent or stepparent are counted for his eligibility determination, as well as the eligibility determinations of his spouse and children in the home. Counted if anyone in the Family Unit/Budget Unit receives Social Security Benefits Child’s MAGI household If the child lives with a parent, only counted if the child is required to file a federal tax return.. Counted if anyone in the Family Unit/Budget Unit receives Child Support Received Not counted Counted – subject to $50 exclusion Child Support Paid Not deducted from income Not deducted from income Alimony Received Counted if divorce agreement was finalized prior to January 1, 2019, and the agreement has not been modified. Counted – subject to $50 exclusion if comingled with child support Alimony Paid Deducted from income if divorce agreement was finalized prior to January 1, 2019 Not deducted from income Worker’s Compensation Not counted Counted Veteran’s Benefits Not counted if they are not taxable in IRS Publication 525 Counted Scholarships, fellowships, grants and awards used for educational purposes Not counted Not counted Student Loan Debt Effective January 1, 2019, student loan debt forgiven due to death or disability of student is not counted as income Not applicable Foreign Income (whether or not excluded from taxes) Counted Counted Interest Counted Counted Lump Sums Income in month of receipt Income in month of receipt Lottery & Gambling Winnings Lottery and gambling winnings of $80,000 or greater, received in a single payout, are counted in the month received and over a period of up to 120 months. Income in month of receipt for other HH members. Income in month of receipt Gifts, inheritances, life insurance proceeds Not counted Counted as lump sum in month of receipt Parsonage allowance Not counted Counted