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b. Net earnings from self-employment 2. Unearned income, which includes all income that is not earned. NOTE: Some income types may be earned or unearned depending on circumstances. AVAILABLE INCOME: All income, even if it is excluded per policy, must be entered on the appropriate screen. Consider income available both when: 1. Actually available, and 2. The client has a legal interest in and the legal authority to make the income available As a condition of eligibility, clients must apply for all countable income they may be eligible or entitled to receive. If they fail to pursue countable income they are entitled to, the amount they would have received is countable. If the amount the client would receive cannot be determined, close or deny the case due to insufficient income information to determine financial eligibility. COUNTING INCOME: Income that is NOT expected to be received monthly, such as quarterly interest payments, is prorated over the period intended to cover. Do not count or prorate periodic payments until the first payment is received after Medicaid application. Income received on a monthly or more frequent basis will be budgeted according to methods outlined in CMA 601-1 Prospective Budgeting. VERIFYING INCOME: ACA: Verify self-attested income using PEV. PEV is used to verify initial month of application and ongoing eligibility. If data sources indicate an inconsistency, follow the PEV inconsistency process. If a data source is not able to verify income i.e self employment, royalties, 1099 income), further information may be required. ABD & Family Medically Needy: Income must be verified at application and when a change is reported. The client’s written or verbal statement alone is not sufficient; collateral proof is required. ABD & Family Medically Needy: The client is primarily responsible to provide income verification; however, eligibility staff will help the client obtain verification, as necessary. UNEARNED INCOME VERIFICATION: Verify unearned income with any of the following sources: