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West Virginia Income Maintenance Manual Chapter 4

West Virginia Income Maintenance Manual Page 156 Chapter 4 Income

based income for the month of August. Hazel’s household income for succeeding months will be higher when the lump-sum approach is used. 4.7.2.C Step 3 – Required Additions Add the following income sources to the income determined in Step 2: • Foreign earned income and housing costs as defined in 26 USC §911. • Any interest received that would normally be excluded from taxes. • The portion of the individual’s Title II Social Security benefits typically excluded from taxation, as described in 26 USC §86(d). • Self-employment/farming income, after accounting for depreciation and operating losses. In cases where the business or farm operated at a loss, the Worker must subtract the amount of the loss from the income calculation. See the methodology established in Section 4.7 for calculating self-employment income. • For individuals who expect to be claimed as a tax dependent by a grandparent, another relative, or another individual who is not a parent or stepparent, their household income includes cash support provided by the person claiming them as a tax dependent, if over $50 per month. • Lump-sum income must be included, but it must only be counted in the month that it is received. 4.7.3 MAGI-BASED INCOME DISREGARD The only allowable income disregard is an amount equivalent to five percentage points of 100% of the Federal Poverty Level (FPL) for the applicable MAGI household size. The 5% FPL disregard is not applied to every MAGI eligibility determination and should not be used to determine the MAGI coverage group for which an individual may be eligible. The 5% FPL disregard will be applied to the highest MAGI income limit for which an individual may be determined eligible. 4.7.3.A MAGI-Based Income Disregard Examples