Medicaid Policy
Medicaid Policy
Previous Policy (413-3 was previously found in 401-2 until November 1, 2021)
For Non-MAGI-based programs, countable income is gross income minus exempt income, allowable disregards, deductions, and earned income expenses, if applicable. The various programs allow different exemptions, disregards, deductions and expenses. This means "countable income" to decide eligibility for one program can be different than the "countable income" used to decide eligibility for another program.
Sometimes, a individual may incur expenses in an attempt to make certain types of income available. For example, an individual may have legal fees to try to receive insurance payments. Deduct expenses the individual must pay to make the income available before determining the gross income received by the individual. Such expenses may include court costs, lawyers' fees, liens, etc., that are taken out before the individual receives the income.
Do not deduct taxes, court-ordered support payments, garnishments for debts, insurance premiums, employee contributions to retirement funds, medical savings accounts, or flexible accounts for medical or child care expenses, etc., taken out of income before an individual receives the income. Do not deduct expenses such as checking account fees from income being directly deposited to an account. Do not deduct expenses such as transportation costs to get to work, FICA tax or other payroll deductions.
(See 431-1 for health insurance deductions and 431-2 for impairment-related work expense deductions for the disabled. See 415-3 and 419-1 for deferred income.)
See 440-2 for income for MAGI programs.