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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200B – Income: MAGI Categories Page |140

Effective Month: July 2025

• If paid monthly, count the last monthly payment as income, • If paid as a lump-sum at the end of the contract period, average the income over the contract period and use as a monthly amount.

200B.03.03 SPECIFIC INCOME TREATMENT – DIFFERENT FORMS OF BUSINESS Income received by an individual from a business may be • Wages as an employee, • Self-employment income, or • Unearned income.

A determination must be made as to the form of business and the individual’s relationship to the business, as discussed below.

For all of the different forms of businesses discussed below, refer to 200B.03.03A/B for using federal tax return verification to determine net earnings from self-employment and/or wages or unearned income from partnerships or corporations.

SOLE PROPRIETORSHIP Owned by one individual. Owner has sole control & responsibility of the business. Owner receives all profits. Owner is self-employed. Example – no self-employment – A parent applying for his child is an electrician working for a construction company. He has materials provided and receives a regular paycheck with taxes withheld. The electrician is not self-employed. He is an employee of the construction company with wages. Rely on standard wage verification discussed in 200B.04, Verification of MAGI Income, to verify wages. Example – self-employed – A parent applying for his child is an electrician who solicits his own work, works on jobs for more than one person or business, provides his own tools and is paid when the job is finished with no taxes withheld. The electrician is self-employed. Verify wages by requesting federal tax returns. NOTE: the electrician’s net earnings from self-employment are his gross receipts less his expenses as reported on his federal tax return, regardless of the amount he may have withdrawn from his business during the tax year.