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E-130 Division of Welfare and Supportive Services MAGI BUDGETING Medical Assistance Manual BEST ESTIMATE OF INCOME 22 Jul 01 MTL 03/22
of the current monthly income.
If the client provides any additional verification of income or a change in income is discovered by the agency between the date of application and the date of processing the income change will be evaluated in the best estimate calculation.
If the client reports new employment or a new benefit, without a pay history, a projection of income based on hourly rate, hours worked and pay frequency will be used to determine ongoing monthly income.
It is acceptable to exclude a check from the best estimate when the check does not provide a clear representation of a household’s current circumstances (e.g. one check provided is abnormal due to excess sick leave).
E-130.1 Converting Income to Monthly Amounts
If income is not received monthly, convert it to monthly amounts using one of the following methods (not all inclusive):
a. Multiply weekly income by 4.3.
b. Add amounts received semi-monthly (twice a month).
c. Multiply bi-weekly (amounts received every other week) by 2.15.
d. Divide annual income by 12.
e. Divide semi-annual income by 6.
f. Divide quarterly income by 3.
g. Divide bi-monthly income by 2.
E-130.2 Unpredictable Income
Irregular and unpredictable income is exempt. Consider income irregular and unpredictable if both of the following conditions apply:
a. the anticipated income will be less than or equal to $30 in a calendar quarter, and
b. the income is received too infrequently or too irregularly to be reasonably anticipated.
E-130.3 Irregular Income
When converting and projecting earnings, do not include bonuses, holiday pay, commissions and/or overtime, unless it is received on a regular basis or the holiday pay is received in lieu of regular pay (i.e., vacation pay). If bonuses, overtime, commission, etc., is received once a month, convert the regular earnings and then add the monthly overtime, bonus, commission, etc., to the total converted amount of earnings. Ensure the budgeting method is documented in the case