Kansas Family Medical Assistance
Manual (KFMAM)
Eligibility Policy - 12/26/2024
05000 >>> 05100
05000
05100 General Guidelines - The following general rules are applicable:
5110 - Income must be real. To be real, income must be such that its value can be defined and measured.
5110.01 - Income value must be established by objective measurement.
5110.02 - Income shall be considered available when a client has a legal interest therein and the legal ability to make it available. Earned income is available to the individual producing it and all persons for whom he is a member of their individual budget unit. Unearned income is available to the individual for whom it is intended and all persons for whom he is a member of their individual budget unit.
5110.03 - The income of all persons who are included in the individual budget unit must be considered but will not always be counted. See 5130 for additional information about when an individual may be in the IBU but not have their income included in the determination. If, in the month of application, a member of the IBU has left the home, his or her income shall not be considered as being available to the family in that month. Also see 5400.
5110.04 - A conversion of property from one form to another shall not be considered as income except for the proceeds from a contract for the sale of property.
5120 MAGI Income Threshold - The MAGI Income Threshold is the minimum income requirement that establishes if an individual is required to file taxes is set by the Internal Revenue Service (IRS) and is subject to periodic changes. The MAGI Income Threshold is used to determine when income shall be counted for certain children and tax dependents. It does not apply to non-dependent adults or to children living with non-parental caretakers.
The MAGI Income Threshold is defined annually by the IRS for the previous tax year. The current threshold amounts/limits can be located in the F-8 Kansas Medical Assistance Standards chart in the appendix of the KanCare Policy website. Individuals whose income is above the MAGI Income Threshold are required to file a Federal tax return. Whether or not they actually file a tax return has no impact on how their income is counted for medical assistance purposes.
Note: The MAGI income threshold does not apply to SSA income. SSA income is only counted for minors and tax dependents who have taxable income from earnings or interest/dividends. Otherwise, it is considered exempt.
5130 Countable Income for a Child or Tax Dependent - The countable income of a child or tax dependent may be excluded from their own IBU and other IBUs for which they are a member of according to the rules below.
5130.01 Non-Filer Budgeting Units - When the IBU is based on the non-filer rules as defined in 3120, the income of a child (under age 19) will be excluded when their income is below the MAGI Income Threshold and their parent or step-parent is in the IBU.
When these requirements are not met, all taxable income of the child is included in their own IBU and any IBU that they are a member of.
5130.02 Filer Budgeting Units - When the IBU is based on the filer rules as defined in 3110, also known as Tax Household Budgeting Units, the income of a tax dependent will be excluded when their income is below the MAGI Income Threshold and they are a tax dependent of the Primary Taxpayer. When these requirements are not met, all taxable income of the tax dependent is included in their own IBU and any IBU that they are a member of.