Page 29

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued August 11, 2025

Page 29 of I-1530 Replacing February 17, 2025

Deleted text indicated by “” Revised/added text indicated by underscore

SELF-EMPLOYMENT EARNINGS

Count net earnings as earned income.

To determine net earnings, first determine gross earnings.

If personal and business funds are commingled in an account, withdrawals from the account for personal use are counted as net earned income. Any income withdrawn that cannot be documented specifically for business expenses shall be considered for personal use.

Count the distributive share (whether or not distributed or received) as net earned income, if the business is a partnership.

Acceptable verification of gross earnings and deductions in order of preference are:

• Applicant's income tax return for the previous calendar year (including all schedule attachments such as Schedule C, Profit or Loss from Business, necessary to determine gross earnings and allowable business expenses),

• Business records, and

• Applicant's signed statement of income and deductions, only if no other verification is available and only for the initial eligibility determination.

Yearly income and deductions (even if seasonal) from a tax return are divided equally among the months in the tax year to determine monthly income.

When the applicant's statement is used, advise the applicant that business records for income tax purposes must be maintained and presented for future determinations (renewals or reapplications).

Deduct the following business expenses allowable by the Internal Revenue Service to obtain net earned income:

• The applicant's statement concerning the amount of the following expenses may be accepted:

– advertising,