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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 425 Unstated Income

When an alternate method has been used to determine net earnings, the individual should maintain monthly records of ongoing receipts and expenditures until the federal tax return is available so that substantial variations of income can be identified and reported immediately to avoid erroneous eligibility.

E-425 Unstated Income MS Manual 07/01/20 Unstated income is incomenot reported or otherwise accounted for but known to exist because living expenses exceed the income that has been reported. An applicant, recipientor person whose income is subject to deeming may have unstated income. The amount of unstated income to be considered as unearned income in determining eligibility is the difference between the declared monthly income and the monthly living expenses.

E-426 When to Develop Unstated Income MS Manual 07/01/20 When an individual’s stated income does not appear adequate to cover living expenses, it will be necessary to develop unstated income, unless there is a reasonable explanation to account for the difference; e.g., savings have been used or bills have not been paid. If the previous year’s income tax return of an individual engaging in self-employment activity shows “0” or only a small amount of net income, living expenses and unstated income must be explored.

E-427 Development of Living Expenses MS Manual 07/01/20 When development of living expenses is required due to unstated income, it is necessary to consider the living expenses of every memberof the individual’s household. It is essential that a complete disclosure of the following be obtained: 1. Shelter or Living Quarters Cost (rents, taxes, mortgage payments, heating expenses, utility expenses, water expenses, sewer expenses, garbage collection expenses, etc.) 2. Clothing and Upkeep