Presumptive Eligibility Policies and Procedures Handbook

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Income

To determine a household’s income, include any non-exempt income received by members of the household and deduct any acceptable expenses. See chart below for listing of the non-exempt types of income. Earned Income ‐ Income an individual receives for a certain degree of activity or work. Earned income entitles the individual to work-related deductions. Unearned Income ‐ Payments received without performing work-related activities, including benefits from other programs.

Income = earned income + unearned income + self-employment income ‐ expenses ‐ income disregard

Types of Income
Earned Income	Wages and Tips
	On-the-job training income
	Welfare-to-work income
Unearned Income	Military allotment
	Vacation pay
	Capital gains
	Interest
	Note Interest
	Dividends
	Royalties
	Award prizes
	Alimony received
	RSDI
	Unemployment compensation
	Pension/retirement
	Railroad retirement
	Annuity
	Canceled Debts
	Court Awards
	Jury duty pay
	Life estate
	Trust payments
	Gifts or contributions
Self-employment Income	Rental
	Farming/fishing
	Sales
	Construction/repair work
	Commission
	Odd jobs
	Contract/seasonal work
	Other income

Income Conversions

All income must be converted to a monthly amount. Use the following conversion factors to convert incomes to a monthly amount.

if Paid	Then Multiply
weekly	gross pay x 4.33
every other week	gross pay x 2.17
semi-monthly	gross pay x 2

NOTE: Divide yearly income by 12 for monthly income. Clients may not have the weekly/biweekly gross pay. To calculate the gross pay, multiply the hourly amount by the number of hours worked per week.

Examples

Mrs. Callahan works 30 hours per week at $7.24 per hour; she is paid weekly.

30 x $7.24 = $217.20 weekly gross earnings

The converted monthly income is

$217.20 x 4.33 = $940.48

Mr. Burns works 40 hours per week at $7.15 per hour; he is paid biweekly.

40 x $7.15 x 2 = $572.00 biweekly gross earnings

The converted monthly income is

$572.00 x 2.17 = $1241.24

Expenses

Allowable expenses include:

Alimony paid
Educational expenses/student loan interest
Moving expenses
Tuition or GI Bill (military)
Educator expenses
Expenses of reservists, performing artists, or fee-basis government officials
Health savings account
Deductible part of self-employment tax
Self-employed IRA, simple IRA, and qualified plan deductions
Self-employed health insurance
Penalty on early withdrawal of savings deduction
IRA deduction
Domestic production activities deduction
Domestic production activities deduction
Costs related to self-employment income such as labor, sales tax, stock, raw materials, rent, insurance

Disregards

Once the income has been calculated, subtract the standard income disregard, which provides the total net income. The income disregard is equal to five percentage points of the Federal Poverty Level (FPL) for the applicable household size. The table below shows the disregard amounts by household size:

Standard MAGI Disregard
Five Percentage Points of FPIL (March 2022 - Ongoing)

Family Size

Standard Income Disregard

$56.65

$76.30

$96.00

115.65

$135.30

$155.00

$174.65

$194.30

$214.00

$233.65

$253.30

$273.00

$292.65

$312.30

$332.00

Each Added person

$19.70

Once the income has been determined, identify the maximum household income for the relevant household size and applicable Medicaid program. If the income is equal to or less than the maximum household income, the individual is eligible for Short-term Medicaid, if all other eligibility criteria are met.

Income Limits

Use the charts found here to determine whether an applicant is at or below the relevant income limit.