MAGI Defined

MAGI Defined A. MAGI and household income are defined in section 36B(d)(2)(A) and(B) of the Internal Revenue Code (IRC). The treatment of income is based on IRS tax rules, except for specified exceptions. B. Modified adjust gross income, as amended by the ACA, has the literal meaning of income that is: 1. Decreased by allowable tax deductions that include trade and business deductions, losses from the sale or exchange of property, deductions attributable to rents or royalties, and deductions for alimony paid. Generally, the same adjustments to income allowable under IRS rules are allowable deductions from countable income for Medicaid and CHIP purposes. 2. Increased by the amount of interest received or accrued that is exempt from tax and foreign earned income that is excludable as taxable income.