Income And Income Deduction Sources - California

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Income And Income Deduction Sources - California

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Income and Income Deduction Sources

Income Source Employee compensation: (Wages, salary, tips, bonuses, awards, and fringe benefits) Interest income: (Taxable and non-taxable) Ordinary dividends:
Taxable refunds, offsets:
Alimony received:
Business income: (Sole proprietorship)
Capital gains: (Sale of non-business assets)
Other gains: (Sale of assets used in trade or business) IRA distributions:
Pension & Annuities:

MAGI: Medicaid/CHIP Count 1040 line 7
Count 1040 line 8a & 8b* Count 1040 line 9a Count 1040 line 10 Count 1040 line 11 Count 1040 Line 12 (Sch. C or C-EZ) Count 1040 Line 13 (Sch. D) Count 1040 Line 14 (Form 4797) Count 1040 line 15b Count 1040 line 16b

Non-MAGI: Medicaid Count 1040 line 7
Count 1040 line 8a and 8b Count 1040 line 9a Not counted
Count 1040 line 11 Count 1040 Line 12 (Sch. C or C-EZ) Not counted as income Treated as conversion of assets/property Not counted as income Treated as conversion of assets/property Count 1040 line 15b Count 1040 line 16b

MAGI: Exchange Count 1040 line 7
Count 1040 Line 8a and 8b* Count 1040 Line 9a Count 1040 line 10 Count 1040 line 11 Count 1040 Line 12 (Sch. C or C-EZ) Count 1040 Line 13 (Sch. D) Count 1040 Line 14 (Form 4797) Count 1040 line 15b Count 1040 line 16b

• Note: MAGI includes counting both taxable and non-taxable interest income, IRC, Section 36B(d)(2)(B)(ii)

DHCS, Draft - September 5, 2013 (CalHEERS)

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Income and Income Deduction Sources

Income Source Rental real estate: (AI/AN exemptions, page 6) Royalties: (AI/AN exemptions, page 6) Partnerships:
S-Corporations:
Trusts: (AI/AN exemptions, page 6) Farm income: (AI/AN exemptions, page 6) Unemployment compensation: Social Security benefits: (Taxable and non-taxable)

MAGI: Medicaid/CHIP Count 1040 line 17 (Sch. E) Count 1040 Line 17 (Sch. E) Count 1040 Line 17 (Sch. E) Count 1040 Line 17 (Sch. E) Count 1040 line 17 (Sch. E) Count 1040 line 18 (Sch. F) Count 1040 line 19 Count 1040 line 20a*

Non-MAGI: Medicaid Count 1040 line 17 (Sch. E) Count 1040 line 17 (Sch. E) Count 1040 line 17 (Sch. E) Count 1040 line 17 (Sch. E) Count 1040 line 17 (Sch. E) Count 1040 line 18 (Sch. E) Count 1040 line 19 Count 1040 line 20a

MAGI: Exchange Count 1040 line 17 (Sch. E) Count 1040 Line 17 (Sch. E) Count 1040 Line 17 (Sch. E) Count 1040 Line 17 (Sch. E) Count 1040 Line 17 (Sch. E) Count 1040 Line 18 (Sch. F) Count 1040 line 19 Count 1040 line 20a*

Other income: (Gambling winnings, gifts, prizes, cancellation of debt, jury duty pay, foreign earned income)

Count 1040 line 21 Might consider some sources as lump sum (gambling, prizes, cancellation of debt)

Note: Some programs exempt disability payments Count 1040 line 21

Count 1040e 21

* Note: Public Law No. 112-56, Section 401, signed November 21, 2011, amends Section 36B(d)(2)(B) of the IRC to modify the calculation of MAGI to include counting Social Security benefits which are not taxed. This treatment applies to all Insurance Affordability Programs. This is noted in the pre-amble of the Final Eligibility Rule, page 17153.

DHCS, Draft - September 5, 2013 (CalHEERS)

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Income Source

Income and Income Deduction Sources
MAGI: Medicaid/CHIP Non-MAGI: Medicaid

MAGI: Exchange

Tax exempt foreign earned income:
Veteran’s disability benefits:
Veteran’s pension benefit: Veteran’s education benefit:
Child support received:
Worker’s compensation Railroad retirement benefits: SSI benefits
Welfare benefits and other public assistance payments: (Payments based on need, victims of crime, disaster relief) Foster Care and Adoption Assistance payments:
Military allowances: (BAH/BAS) Holocaust victims restitution

Count non-taxable foreign earnings identified on Form 2555 1040 line 21 Not counted
Not counted Not counted
Not counted
Not counted Count Not counted
Not counted

Count non-taxable foreign earnings identified on Form 2555 1040 line 21 Count Exempt aid & attendance Count Various treatments (VEAP, MGIB, 911 MGIB) Count Income deductions apply Count Count Not counted. Note: Lump sum retroactive payments are exempt. ACWDL 09-61 provides instructions. Not counted

Count non-taxable foreign earnings identified on Form 2555 1040 line 21 Not counted
Not counted Not counted
Not counted
Not counted Count Not counted
Not counted

Generally not counted Count payment to maintain a room for emergency foster care. Not counted

Generally not counted Count payment to maintain a room for emergency foster care. Count

Generally not counted Count payment to maintain a room for emergency foster care Not counted

Not counted

Not counted

Not counted

DHCS, Draft - September 5, 2013 (CalHEERS)

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Income Source Lump sum income: (Gambling winnings, prizes, cancellation of debt, surviving spouse receives salary or wages from decedent’s employer)
Lump sum income: (Retroactive Social Security and Railroad Retirement benefits)
Education scholarships, awards, fellowship grants: (AI/AN exemptions, page 6) AI/AN exemptions: See list page 6

Income and Income Deduction Sources

MAGI: Medicaid/CHIP Count in month received 1040 line 21

Non-MAGI: Medicaid Count in month received

MAGI: Exchange Count as annual income 1040 line 21

Count in month received 1040 Line 20a

Count Railroad Retirement benefits in the month received. 1040 Line 20a

Count as annual income 1040 line 20a

Count if used for living expenses

Note: Lump sum retroactive Social Security benefits are exempt. ACWDL 09-62 provides instructions. Count if used for living expenses

Not counted

Income not counted

Income not counted

Income counted

DHCS, Draft - September 5, 2013 (CalHEERS)

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Income and Income Deduction Sources

Income Deduction Source Educator expenses: Business expenses of reservists, performing artists, etc.: Health Savings Account:
Moving expenses:
Deductible part of selfemployment tax: Self-employed SEP, Simple, and qualified deduction: Self-employed health insurance deduction: Penalty on early withdrawal of savings: Alimony paid: Child support paid: IRA deduction: Student loan interest: Tuition and fees:
Domestic production activities:

MAGI: Medicaid/CHIP 1040 line 23 1040 line 24 Form 2106/2061 EZ
1040 line 25 Form 8889 1040 line 26 Form 3903 1040 line 27 Form SE 1040 line 28
1040 line 29
1040 line 30
1040 line 31a Not deducted 1040 line 32 1040 line 33 1040 line 34 Form 8917 1040 line 35 Form 8903

Non-MAGI: Medicaid Not deducted Not deducted
Not deducted
Not deducted
Not deducted
Not deducted
Deducted
Not deducted
Deducted Deducted Not deducted Not deducted Deducted
Not deducted

MAGI: Exchange 1040 line 23 1040 line 24 Form 2106/2061 EZ
1040 line 25 Form 8889 1040 line 26 Form 3903 1040 line 27 Form SE 1040 line 28
1040 line 29
1040 line 30
1040 line 31a Not deducted 1040 line 32 1040 line 33 1040 line 34 Form 8917 1040 line 35 Form 8903

DHCS, Draft - September 5, 2013 (CalHEERS)

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Income and Income Deduction Sources
American Indian/Alaska Native Exemptions (435.603 (e)(3):
• Distributions from Alaska Native Corporations and Settlement Trusts • Distributions from any property held in trust, subject to federal restrictions, located within the most recent
boundaries of a prior Federal reservation, or otherwise under the supervision of the Secretary of the Interior • Distributions and payments from rents, leases, rights of way, royalties, usage rights, or natural resource extraction
and harvest from: o Rights of ownership or possession in any lands located within the most recent boundaries of a prior Federal reservation, or otherwise under the supervision of the Secretary of the Interior o Federally protected rights regarding off-reservation hunting, fishing, gathering, or usage of natural resources
• Distributions resulting from real property ownership interests related to natural resources and improvements: o Located on or near a reservation or within the most recent boundaries of a prior Federal reservation; or o Resulting from the exercise of federally-protected rights relating to such real property ownership interests
• Payments resulting from ownership interest in or usage rights to items that have a unique religious, spiritual, traditional, or cultural significance or rights that support subsistence or a traditional lifestyle according to applicable Tribal Law or custom
• Student financial aid provided under the Bureau of Indian Affairs education programs

DHCS, Draft - September 5, 2013 (CalHEERS)

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