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Income Modifications to MAGI 100 We must make some additional modifications to MAGI to determine Medicaid/CHIP eligibility:  Lump sum payments. Taxable lump sum payments (e.g., prizes, back pay, insurance settlements, etc.) are generally only counted in the month received with the following exception: – Exception: lottery and gambling winnings received on or after January 1, 2018, that exceed $80,000 are counted over a longer period of time, up to 120 months*  Educational scholarships, awards or fellowships used for educational purposes are subtracted. Note: Most scholarships are not taxable, so they will not typically be included in taxable income and therefore will not need to be subtracted; however, if taxable, they are not counted in MAGI-based income  American Indian/Alaska Native specified income is subtracted.  Cash Support. For individuals who expect to be claimed as a tax dependent by a relative, or another taxpayer who is not a parent, household income may include cash support (exceeding nominal amounts) provided by the person claiming the individual as a tax dependent Non-taxable lump sum payments (e.g., disaster relief payments or tax refunds, etc.) are not counted in MAGI calculations Comparing Results to Eligibility Levels Determining Household Income Constructing a Household Purpose *See SHO #19-003 for details on the formula for determining this period State Policy Option