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Title 8: Medicaid Page 93 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… Prudent person can be used to determine if the verification is sufficient. Tax expenses can be claimed by individuals whether or not they plan to file a tax return. • Allowable tax expenses include:  Car and truck expenses (for travel during workday, not commuting)  Depreciation  Employee wage and fringe benefits  Property, liability, or business interruption insurance  Interest (including mortgage paid to bank, etc.)  Legal and professional services  Rent or lease of business property or utilities  Commissions, licenses, taxes, and fees  Advertising  Contract labor  Repairs and maintenance  Certain business travel and meals  Deductible self-employment taxes  Cost of self-employed health insurance  Contributions to self-employed SEP, SIMPLE, or qualified retirement plan Give the client the opportunity to clarify why income is not a good indicator of future income. Document in WISE the reason for the call and the response. Send a request for information if no response from the client. The request should also inform the client that they may also provide verification of anticipated income. However, verification cannot be required at this point. If clarification of income is requested but not provided a non-compliance of ‘failure to provide information’ will be used to complete the negative action.