Countable vs. Non-Countable Income

The types of countable and non-countable income used to determine eligibility for Modified Adjusted Gross Income (MAGI) Medicaid (MA). Dependents’ income should only be counted if the dependent is required to file taxes.

Countable Income

Wages, Salaries, tips, bonuses, awards

Income derived from gifts/inheritances

Interest income (taxable and non-taxable)

Farm income

Ordinary dividends

Alimony / Spousal support

Business income

Capital gains

IRA distributions

Pension and annuities

Unemployment compensation

Social Security beneifits (taxable and non-taxable)

Railroad retirement

Gambling winnings

Jury duty payments

Foreign earned income

Rental income 

Lump sum income (Retro Social Security/Railroad Retirement)

State agency payments received for child care

Waiverpayments issues to individual care providers received for a non-household member (related or unrelated)

Oil leases/mineral rights

Partnerships/S-Corporations

Any remaining portion of a lump sum payment awarded for wrongful death, personal injury, damaged, or loss of property not excluded for tax purposes

Trust income


Non-Countable Income

SSI benefits

Social security benefits of dependents

TANF (KTAP) benefits

Veteran’s disability benefits

Veteran’s pension benefits

Vetran’s education benefits

Military allowances

Employer reimbursement for mileage, meals, etc.

Earned income tax credits

Worker’s compensation

Employer contributions to certain pretax benefits funded by an employee’s elective salary reduction, such as amounts for a flexible spending account or contributions to a retirement account.

Fringe benefits provided on a pretax basis by an employer.

Child suppoet received

Foster care and adoption assistance payments

Education scholarships, awards, fellowship grants

Loans 

Federal Work Study income

Wages of minors

Gifts and inheritances

Waiver payments issues to individual care providers received for a household member (related or unrelated)

Black lung benefits

Cash rebates from a dealer or manufacturer

Refugee cash assistance

Native American benefits and payments

Income from a sponsor for a sponsored immigrant

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