The following Unearned Income Types are counted under MAGI Budgeting.
Includes Tier 1, Tier 2 and any supplemental annuity benefits.
Note: Although Tier 1 benefits are not taxable, they are considered the same as nontaxable SSA benefits and are counted under MAGI.
Compensation for the use of property, such as copyrighted works, patented inventions, or natural resources.
Royalties received as an investment dividend or from a lease agreement (i.e., royalties paid to the owner of a mine, oil well, etc.) are considered unearned income, unless the payment represents net earnings from self-employment.
SSA benefits refer to these three types of benefits that the Social Security Administration pays: Retirement, Survivors, and Disability Insurance (RSDI).
Note: In some situations the SSA income of a child or tax dependent of another person in the EDG is not counted. Refer to PM 15-06-01-h to determine if the child or tax dependent's income is counted.
State or local tax refunds are taxable if the person claimed the tax as an itemized deduction in the prior year.
If the person claimed the standard deduction on their federal tax return last year, the state tax refund is not taxable.
Illinois Department of Human ServicesJB Pritzker, Governor · Dulce Quintero, Secretary
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