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Division of Welfare and Supportive Services E-130.3 Medical Assistance Manual MAGI BUDGETING 22 Jul 01 MTL 03/22 Irregular Income

record.

Households which, by contract or self-employment, receive their annual income in a period of time shorter than one year shall also have that income averaged over a 12-month period provided the income from the contract is not received on an hourly or piecework basis. These households may include some school employees, sharecroppers, farmers, and other self-employed households. This does not include migrant or seasonal farm workers.

E-130.4 Converting New Income

Use the following procedures if the household has a new source of income and there is not enough history from which a monthly amount of income can be accurately projected:

a. Determine the estimated number of hours to be worked per week,

b. Estimate weekly gross income by multiplying the weekly estimated hours by the hourly wage.

c. Determine the monthly projected gross income by multiplying the estimated weekly gross income by 4.3.

Note: If verification substantiates the use of a specific factoring method which is more accurate than multiplying weekly gross income by 4.3, use what will accurately reflect the income to be received.

E-135 APPLICATION OF MODIFIED ADJUSTED GROSS INCOME

Modified adjusted gross income consists of four types of income that are counted in determining eligibility: (see MAM E300 for list of taxable/non-taxable income types).

• Taxable income • Social Security (RSDI) benefits not included in taxable income • Tax-exempt interest • Foreign earned income

E-135.1

Allowable Deductions

MAGI budgeting rules require the use of current monthly income in the Medicaid determination and annual income used in the advance premium tax credit (APTC) determination.

Current monthly income budgeting only allows pre-tax deductions taken on a monthly basis or taken in the budget month to be included in the current monthly income budget. Deductions taken on an annual basis are not included in a current monthly income budget determination. The APTC eligibility determination is made using annual income and annual deduction amounts. The difference in budgeting methodology may cause an individual to be determined Medicaid eligible based on annual income and Medicaid ineligible based on current monthly income.

When this occurs, and the application attests annual income, the case manager should request verification of the expected annual income amount listed on the application. If the verified annual income divided by 12 makes the individual Medicaid eligible and there have