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Health Care Finance and Administration Section: Financial Eligibility Policy Manual Number: 010.035 Chapter: Reasonable Compatibility and Verification

Caretaker Relative Income Standard (household size of 4): $1,867 MAGI from Hub: $1,900

Hub Reasonable Compatibility Maximum: $1900 – (1900 x .10) = $1,710

Since Mr. Jones’ attested income ($1,750) is GREATER THAN the Hub Reasonable Compatibility Maximum ($1,710). Attested income and income obtained from Hub are considered reasonably compatible and no further income verification is required.

b. Reasonable Compatibility Calculation with Reported Quarterly Wage Data

Quarterly Wage Data (QWD) will be subject to the reasonable compatibility test when there is no income information available from the Hub. The individual’s attested income must still be less than the applicable category income standard, and QWD must be greater than the income standard before the Reasonable Compatibility is applied.

The reasonable compatibility test using QWD is calculated the same way as the reasonable compatibility testing using Hub data.

3. Verification

Income Type Electronic Data Source Paper Documentation Wages • IRS data from the Hub • Tennessee Department of Labor and Workforce Development (TDLWD) • Equifax/TALX data • Pay stubs • Statement from employer • Signed statement for tips • Bank deposit slip • Statement from employer identifying an item paid in-kind, the date the in-kind wages were paid, any balance due on item Self-Employment • IRS data from the Hub • Federal income tax return (Schedule SE) • Business Records • Individual’s signed statement Rental • IRS data from the Hub • Federal income tax return • Current Lease or Contract • Statement from renter including the amount and payment date of rental amount • Rent receipt indicating amount and payment date Royalty • IRS data from the Hub • Written verification from the source of the royalty income June 4, 2015 HCFA 3