Hi I’m sorry for all these questions I’m not sure if your name is Hal or Al…
I have another very important question about how magi is calculated.
my son has a traditional IRA for 2021 with the sole purpose of bringing down his income so that he could qualify for New Jersey family care Medicaid health insurance which is why we also thought he had to be independent because I don’t know if him being able to be claimed independent even if he’s not will screw up his eligibility.
New Jersey family care uses Magi - modified adjusted gross income. I thought that meant that it would be his income minus the IRA deduction which brings him to about $17,000 and you cannot make more than 18,000. Most of his income is from the scholarship. Without the IRA he’s about 23,000. But the cut off is 18,000 so we thought the IRA would bring him down.
But New Jersey family care Medicaid uses modified adjusted gross income- When I look it up it says to get that number which is not on the income tax form only the adjusted gross income is you need to take your adjusted gross income and you have to add back the IRA which means he won’t qualify!! There is a legal service in northern New Jersey and they have the only article that I read that said in fact you deduct the IRA to get the modified adjusted gross income to see if you are eligible for New Jersey family care. When I read about modified adjusted gross income it is very confusing but most of it looks like you have to add back the IRA can you please tell me if this is the case?? Some articles talk about how modified adjusted gross income is used to determine if you can do a Roth IRA or whatever that means but it clearly states in most of the articles that you have to add back an IRA and the only reason for taking out the IRA was to lower his income so he would qualify for New Jersey family care Medicaid.
Can you please tell me if the modified adjusted gross income subtract the IRA or you have to add it back in? That would make everything moot - His father has in my New Jersey family care and they’re going to get dropped so he has to apply on his own and that was the whole reason for him being independent if he was eligible - now the other issue a bigger issue is his income they don’t let you take out the scholarship but we thought the IRA could be deducted to get modified adjusted gross income and I’m reading now most articles say the opposite you have to add it back in and one article from a legal service that was specifically writing about modified adjusted gross income for a qualification for Medicaid New Jersey family care said you deduct it … The New Jersey family care Medicaid website says it follows the modified adjusted gross income as per the tax laws. That makes me think that the legal service is incorrect because all the other articles like Google so you have to add back in the IRA which will make him in eligible. Can you please clarify thank you so much!
