Programs |
Manual Section |
MAGI programs |
The customer’s business did not make any profits for the year. The customer gives proof that the business had a loss of $2,400 for the year. The $2,400 is divided by 12 to get the monthly amount of loss. The average monthly loss is $200. This amount is subtracted from the budget group’s countable income when determining income eligibility.
The customer’s business did not make any profits for the year. The customer gives proof that the business had a loss of $1800 for the year. The $1800 is divided by 12 to obtain the monthly amount of loss. The average monthly loss is $150. The income from this business is counted as $0 when determining the budget group’s countable income eligibility for the month.
The customer provided two Schedule C Tax forms as proof of income for the business the customer and spouse share. Both the customer and spouse filed taxes as joint owners of the business. Since both customers run the business, they are co-owners and each filed taxes for their part. Income from the business would be counted for each member when determining the budget group’s countable income.
The customer and her family were part of the Adopt-A-Road program for years while she was in high school. Last year she moved into an apartment with her friends but had trouble finding work. She decided to use her experience as a volunteer and collect cans and other materials she could sell. She does keep regular hours and considers this her job. When she filed taxes, she used Form 1040 and had to attach a Schedule 1 for ‘Other Income’. Even though she did not have a formal business, her self-employment income is countable, and the tax forms may be used as proof.
The customer started a business in early September last year. The customer started making money right away and the businesses income has stayed the same ever since. He and his family applied for Medical Assistance in March of this year. The customer explained that the tax forms are the only proof they could give, but that they expected this income to stay about the same month to month. We would use the customer’s tax forms to calculate his monthly income from the previous year. By dividing the income and expenses claimed on his tax forms by the number of months (September through December) he was in business.
The customer and spouse have a mortgage on their farm. The customer is now applying for ALTCS. They give tax documents for the farm as proof of income. The mortgage payments are entered as an expense on the tax documents. For ALTCS, and other Non-MAGI programs, the interest paid on the mortgage is deducted from the income. Payment of the loan principal is not deducted from the income when determining the budget group’s countable income.
The customer owns and operates a small cafe. The business has a mortgage for the land and the building. The customer applies for Medical Assistance in the Adult program. The customer gives tax forms as proof of income. The mortgage is entered as an expense. For Adult and MAGI programs, the full amount of the expense paid for the mortgage is allowed. Both principal and interest are deducted from the income when determining the budget group’s countable income.
The customer is self-employed. The customer gives taxes for last year as proof of income. When applying, the customer provided a letter explaining that this income is less than last year. The letter says that the income is about the same every month. The customer is asked to provide proof of the last 30 days of income and expenses for the business. This proof will be used when determining her budget group’s countable income for the month.