This is an archived document and does not contain the most current information for this topic. Use this document for reference only.

Medical Assistance for Families with Children and Adults

2.2.3.5 Income Verification (Archive)

All countable income must be verified for Medical Assistance for Families with Children and Adults (MA-FCA).

The applicant or enrollee must attest to current monthly household income at application, renewal or when reporting a change.
The applicant or enrollee’s attested income, adjustments and exceptions are verified using available electronic sources.
Income is considered verified if:
- The attested income and the electronic data both indicate income is below the applicable MA income limit or
- The attested income is at or below the MA income limit and the electronic data indicates income above the MA limit, but they are reasonably compatible.
If the information cannot be verified by available electronic sources, the person must provide acceptable proof within 10 days of the request by the county, tribal or state servicing agency. Acceptable proof is paper proof.
The county, tribal or state servicing agency must assist clients in obtaining verification. When neither the person nor the county, tribal or state servicing are able to obtain outside verification, a reasonable explanation of the discrepancy may be accepted in circumstances where paper proof is not available such as when the source of income has stopped.

MA-FCA eligibility for enrollees cooperating and attempting to obtain verification is not closed, except for when proofs are required to complete a renewal.

An individual who reports having no income is not required to provide verification or an explanation, unless electronic sources or other information the agency has indicate there is inconsistent information. At application, information from electronic data sources that indicate a person has a source of income, such as wages from a job, is inconsistent information when the person has reported no income from that source. Inconsistent information about income at application must be resolved before MA is approved. See EPM 1.3.2.4 MHCP Inconsistent Information for the full policy.

Income

A wide variety of paper documentation is acceptable proof of financial eligibility. Common proof includes, but is not limited to, the following:

Pay stub or earnings statement
Employer statement
Tax records
Copy of check
Business financial records
Bank statement
Interest or dividend statement
Award letter
Proof of alimony
Receipt or statement of rent you receive
Proof of asset sale (Capital Gain or Loss)
Proof or record of other taxable income
Proof of lump sum income
Other proof

Federal Income Tax Adjustments

Adjustments that appear on lines 23 through 35 on IRS Form 1040 or lines 16 through 19 on the IRS Form 1040-A are subtracted from gross taxable income to calculate the adjusted gross income. Only these specific types of adjustment are allowable. A copy of the last filed IRS Form 1040 or 1040A is acceptable verification for adjustments.

Applicants and enrollees who expect to have these adjustments for the current tax year can complete the appropriate form or worksheet listed below to determine the adjustment amount. These adjustments are a calculated or limited amount and the listed proof allows applicants to report anticipated adjustment accurately.

A wide variety of paper documentation is acceptable proof of financial eligibility. Common proof includes, but is not limited to, the following: