- ALL FAMILY SUPPORT DIVISION OFFICES
- JULIE GIBSON, DIRECTOR
- ADOPTION SUBSIDY PAYMENTS FOR MODIFIED ADJUSTED GROSS INCOME (MAGI) BUDGET
- MANUAL REVISION #13:
The purpose of this memorandum is to introduce the addition of policy regarding Adoption Subsidy and/or Adoption Assistance Payments in MAGI budgeting.
Adoption Subsidy/Assistance Payments are not taxable income and therefore excluded in the MAGI budget. Enter Adoption Subsidy/Assistance Payments under the adopted child(ren).
EXCEPTION: If the subsidy payment exceeds the amount the family spends to support the adopted child(ren) the income is taxable and should be included in the MAGI budget. This situation may occur if the Adoption Subsidy/Assistance Payment is the family's sole source of income. If the Adoption Subsidy/Assistance Payment is the family's sole source of income and over the tax filer threshold, enter the income under the adoptive parent(s).
- Review this memorandum with appropriate staff.