Ch. 7-MAGI Income And Deductions Flashcards
What income counts in a MAGI household?
All income is countable, unless specifically excluded by the law from taxation
What type of income is there?
There is countable earned income such as wages, salaries, tips commissions, and profits from self-employment.
There is countable unearned income. Examples would be UIB, SSA, pensions, rental income, annuities, taxable, and earned in-kind.
And then there is excluded income excluded income would be some examples. Child support payments, but veterans benefits, workers comp, employment and training programs. Excluded income would not be counted when working with MAGI money for household.
What deductions are allowed?
There are very few deductions allowed. Some examples are moving expenses, student loan interest, school tuition and fees, spousal support with a divorce or separation occurred on or before December 31, 2018 note no childcare expenses are allowed.
Whose income counts when applying for medical?
First income counts, you must first determine the household composition. Each person can have a different income based on how their household is counted.
Is a tax dependent, who earned money but is not filing a tax return; should that person’s income be counted in the household income?
The income of a tax dependent/non-filer is not counted in the tax filers household, unless the tax dependent or non-filer expects to be required to file a tax return
Are we allowed to inform customers of their responsibility and filing taxes or IRS rules?
No, that is not our responsibility. They must consult a tax expert. We do not look at whether they are required to do a tax return by IRS or not.
When do we require verification for income?
We verify income at application, renewal and at any time changes reported
How do we verify income?
We will verify income through the HUB. If we are unable to receive reports from the HUB, we will try to verify through other internal systems before requesting verification from the customer.
What is ex-parte?
Ex-parte It is where a worker will use all data systems available to us before sending a VCL the customer for verification means.
What is a requirement for MAGI Medi-Cal from customers?
They must supply verification and identification of citizenship and identity, and they must apply for unconditionally available income that is still a requirement. Example might be UIB, SDI, VA benefits, Social Security benefits.
How do you determine if income of a tax dependent, or non-filed filer counts in the tax filers MAGI household?
Income of a tax dependent/non-filer of any age who are claimed by their parents is counted in their own MAGI household only if they are expected to be required to file a tax return
Example: mom claims daughter is dependent. Mom makes $2000 a month daughter makes 1000 that is 3000 a month for both people, the 3000 will be counted in the household of mom and the household of the daughter because daughter is filing taxes as well
Are non-citizen required to apply for unconditionally available income?
No. Only legal citizens
