Glossary

Total annual income of everybody living in a household, including most earned and unearned income. MAGI is used to help determine eligibility for income-based Medicaid and for subsidies that help households pay for individual health coverage on Healthcare.gov.

MAGI includes:

• Wages, salaries, tips, and other earned income
• Taxable interest, dividends, business income, and capital gains
• Social Security Disability Insurance (SSDI) benefits and Social Security retirement benefits of people who file taxes
• Unemployment compensation; and
• Most other types of taxable income.

MAGI does not include:

• Supplemental Security Income (SSI), WorkFirst New Jersey, NJ SNAP, and veterans' disability benefits
• Workers' compensation
• Earned income that is placed in a 401(k) plan or Individual Retirement Account (IRA) (Income placed in Roth versions of these accounts is included in MAGI.)
• Pre-tax deductions from a paycheck, including contributions to health savings accounts (HSAs) and flexible spending accounts (FSAs)
• Child support received; and
• Most other types of non-taxable income.

Get more information about what is included in Modified Adjusted Gross Income.