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Title 8: Medicaid Page 92 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Income Policies for MAGI-Related Coverage… Revised April 11, 2025 MAGI-Related Budgeting Procedures… Rounding Procedures The following rounding procedures apply when determining countable MAGI income.  In any calculation of income, drop to the nearest cent.  When the monthly countable income is converted to a percentage of the federal poverty level and the resulting percentage is not a whole number, the federal poverty level percentage is always rounded up to the nearest percentage if the remainder is greater than zero. Shared Living Arrangements When an applicant or member shares living arrangements with another family or person, funds combined to meet mutual obligations for shelter and other basic needs are not income. Funds made available to the applicant or member exclusively for the applicant’s or member’s needs are considered income except any cash support provided to the claimed dependent by the tax-filer. Flattening Income When point-in-time income is not a good indicator of future income due to fluctuations in income or expenses, adjust the monthly self-attested income to a flattened/annualized amount. This would include any countable income such as self-employment, wages, etc. Handle fluctuating income and expenses as follows:  Annual income shall be prorated over 12 months.  Income that fluctuates, such as income that is seasonal, shall be flattened by averaging the anticipated annual amount over 12 months.  Self-employment income may be annualized using the flattening income process.  In order to use an anticipated tax expense for self-employment to determine MAGI countable income, the applicant/participant will need to provide verification of the anticipated expense.