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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |74 Effective Month: July 2025 estimating rental income for the future. Regardless of whether the most recent tax return is available, also request other records (bills, receipts, etc.) to establish gross rental income and allowable expenses for the period involved. Verification of the amount of rental income and dates received, and of the amount of allowable expenses and the dates paid must be documented in the file. Copies of all record (bills, receipts, etc.) used in computing the amount of net rental income must be in the file. If the individual has no tax return or other records, obtain the individual’s signed statement of the reason no records are available and providing his allegation of gross rental income and allowable expenses for the period involved. Use an individual’s amortization schedule to determine interest expense. If a schedule is not available, divide the yearly interest by twelve to determine monthly interest. Estimating Future Rental Income When projecting future rental income, use the documentation obtained from the prior year as discussed above to estimate anticipated income and expenses for the current tax year. For future periods, deduct only those expenses which are predictable, i.e., those which recur regularly and can be estimated with a reasonable degree of accuracy. Examples of predictable expenses include interest payments, property taxes, insurance premiums and utilities. Do not project variable or unpredictable expenses. Consider variable expenses after they have been paid when payment can be documented. Examples of variable expenses include repairs and advertising costs. 200A.07.18 DIVIDENDS AND INTEREST Dividends and interest are returns on capital investments such as stocks, bonds or savings accounts. Dividends and interest are unearned income at the earliest of the following: • The month they are credited to an individual’s account and are available for use. • The month they are set aside for the individual’s use. • The month they are received by the individual. Account service fees or penalties for early withdrawal do not reduce the amount of interest or dividend income.