https://ca.db101.org/ca/programs/health_coverage/medi_cal/program2a.htm
There are many Medi-Cal programs, and each has unique rules.
For Income-based Medi-Cal, Full-scope, No Share of cost, No asset limit :
“All earned and unearned income is counted based on IRS rules for adjusted gross income.
No income is disregarded.”
http://laborcenter.berkeley.edu/modified-adjusted-gross-income-under-the-affordable-care-act/
Modified Adjusted Gross Income (MAGI)
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 Medi-Cal.
https://ca.db101.org/glossary_item.aspx?item-id=7067
Speak with your Medi-Cal eligibility worker and tax advisor for assistance in determining your MAGI.