What does MAGI stand for concerning income counting and determining household size?

MAGI stands for Modified Adjusted Gross Income, and it plays a crucial role in determining eligibility for various assistance programs, including Medicaid and subsidies for health insurance under the Affordable Care Act.

Modified Adjusted Gross Income is calculated by taking the Adjusted Gross Income (AGI) and adding certain deductions back into the income, such as tax-exempt interest and foreign earned income. This measure provides a more accurate reflection of financial capability, taking into account specific exclusions that might artificially lower someone's income.

Understanding MAGI is essential for assessors when evaluating an individual's or family's household size and income for program eligibility. The precise definition and components of MAGI ensure that it accurately captures the financial situation of applicants, allowing for fairer access to health coverage and other benefits based on their true economic status.