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West Virginia Income Maintenance Manual Chapter 4

West Virginia Income Maintenance Manual Page 162 Chapter 4 Income

• Determine gross monthly income: $2,700. • Determine MAGI household size: Four. • Determine 100% FPL for the household size of four: $2,050. • Divide gross monthly income by 100% of the FPL for the household size: $2,700/$2,050 = 1.3170. • Move decimal point two places to the right: 1.3170 = 131.70% FPL. • Compare 140.55% FPL to the income threshold for each coverage group. • The 5% FPL disregard is not required because the applicant is eligible for a MAGI Medicaid coverage group. Ginger’s MAGI household income is below the Medicaid income standard for children age one to five. Therefore, Ginger will be eligible for Medicaid. 4.7.5 SPECIAL SITUATIONS 4.7.5.A Income from Self-Employment When a member of the MAGI household IG receives self-employment income, the instructions below must be used to arrive at the gross profit, which is used to calculate countable income. Countable income is determined by subtracting allowable business expenses from the gross income. 4.7.5.A.1 Determining Gross Income The method used to determine monthly gross income from self-employment varies with the nature of the enterprise. It is necessary to determine which of the following types of self- employment applies to the client's situation. Once the pattern of self-employment is determined, the instructions below are used to determine how the income is counted.

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Page 634

Official source

West Virginia Income Maintenance Manual Chapter 4

West Virginia Income Maintenance Manual Page 162 Chapter 4 Income

• Determine gross monthly income: $2,700. • Determine MAGI household size: Four. • Determine 100% FPL for the household size of four: $2,050. • Divide gross monthly income by 100% of the FPL for the household size: $2,700/$2,050 = 1.3170. • Move decimal point two places to the right: 1.3170 = 131.70% FPL. • Compare 140.55% FPL to the income threshold for each coverage group. • The 5% FPL disregard is not required because the applicant is eligible for a MAGI Medicaid coverage group. Ginger’s MAGI household income is below the Medicaid income standard for children age one to five. Therefore, Ginger will be eligible for Medicaid. 4.7.5 SPECIAL SITUATIONS 4.7.5.A Income from Self-Employment When a member of the MAGI household IG receives self-employment income, the instructions below must be used to arrive at the gross profit, which is used to calculate countable income. Countable income is determined by subtracting allowable business expenses from the gross income. 4.7.5.A.1 Determining Gross Income The method used to determine monthly gross income from self-employment varies with the nature of the enterprise. It is necessary to determine which of the following types of self- employment applies to the client's situation. Once the pattern of self-employment is determined, the instructions below are used to determine how the income is counted.