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Effective: December 1, 2006 |
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21.10ar1 - Determining Gross Income - MinnesotaCare (Archive) |
Archived: April 1, 2009 |
There are specific directions to determine the gross countable income for each health care program.
MinnesotaCare (MCRE) determines the gross income for the household. This section provides rules for determining the MCRE household gross annual countable income.
Determining Countable Income - Steps 1 through 6.
Step 7 - Non-Self Employment Wages.
Determining Countable Income - Steps 1 through 6
Follow these steps to determine gross countable annual income for a MCRE household.
Note: Include dollars and cents to compute the total annual income. Truncate the end result.
1. Determine whose income must be counted as part of the MCRE household. See Deeming of Assets and Income and Household Composition.
2. Determine if any income is unavailable or excluded. Do not count unavailable or excluded income in the household gross income total.
3. Determine if appropriate verification of income has been received.
4. Determine annual net self-employment income for self-employed clients and add that total to the total household countable income.
n The net self-employment income is calculated by deducting allowable business expenses.
n The net self-employment income is considered the gross countable income for that business.
5. Determine the gross countable income of and add that total to the total household countable income.
n For unearned income use gross income before deductions.
n For people receiving who do not yet have a new job, annualize the UI amount to determine eligibility and premium amount, regardless of when the UI is scheduled to end. Advise the client to report any changes such as beginning employment.
Example:
Lisa reports on her application she has been receiving UI of $150 a week. She also reports she began a job working 30 hours a week at $6 per hour.
Action:
Do not include the UI payment in computing Lisa’s annual income. The UI will end due to her employment.
Example:
Arthur applies for MinnesotaCare in July. He is receiving UI of $150 per week. He has 16 weeks remaining on his claim. He has no other income and has not yet found a job.
Action:
Annualize Arthur’s UI and count it as unearned income when determining his gross annual counted income.
6. Determine the gross countable income of other specific types of income and add those totals to the total household countable income.
Step 7 - Non-Self Employment Wages
Determine the gross countable income for non-self employed wages and add the total amounts to the total household countable income. In general, use gross wages before any payroll deductions.
l When using current wage verification instead of tax forms, use the information on the application and wage verification to determine the amount of current countable income.
1. Determine how often each source of countable income is received.
m Base the determination on the last 30 days of earnings.
Note: You may use a longer period if the client submits more than 30 days of wage verification, but do not require more than 30 days.
m If the amount of the income varies, determine an average amount.
Note: If there has been an ongoing change in the amount, use the most current information to project annual income.
Example:
Mr. and Mrs. B are both employed. Mr. B earns a salary of $1,500 per month. Mrs. B earns $5.50 per hour. Her hours vary and she is paid weekly. She enclosed the seven pay checks she has received so far with the application. She expects to continue working similar hours at the same pay.
Action:
Total the gross wages from the seven checks she submitted and divide by seven to arrive at an average weekly amount.
2. Multiply each source of projected average income by the following factor to determine an annual amount:
m Weekly income: 52.
m Biweekly income: 26.
m Semi-monthly income: 24.
m Monthly income: 12.
Example:
Ron applies for MCRE in July. He is receiving UI of $150 per week. He has 16 weeks remaining on his claim. He has no other income and has not yet found a job.
Action:
Base eligibility and premium amount on projected annual income of $7800 ($150 x 52). Advise Ron to report any changes.
l When using tax forms as verification of income, base the determination of income on the amount reported on the tax forms and the W-2s.
n Enter the Adjusted Gross Income (AGI) from the tax forms on the MinnesotaCare Income Worksheet (DHS-3352). Follow instructions on this worksheet.
n If the amounts on the tax forms do not agree with the amounts on the W-2 forms, document the reason for the discrepancy and enter the change as needed on the ”Adjustments to Income” section of DHS-3352.
n Determine if there is countable income not included on the tax forms which must added to the gross countable income.
Note: Some types of non-taxable unearned income may not be reflected. Use the information on the application to determine the amount of unearned income to count.
To determine the annual amount that must be added in the ”Unearned Income” section of the DHS-3352 for ongoing income, multiply the expected amount by the appropriate factor:
m Weekly income: 52.
m Biweekly income: 26.
m Semi-monthly income: 24.
m Monthly income: 12.
Adjust the projected annual income for any known changes.
l Reduce projected annual income for clients who anticipate losing a source of income or an income reduction.
Example:
Loren applies for MCRE in March. He is employed full time but expects to take a leave of absence from May 1 until August 1, during which he will receive no pay. He expects to resume his employment on August 1.
Action:
Calculate annual countable income based on the number of months he intends to work in the next 12 months. If Loren did not have a tentative return date, use zero income beginning with the month in which his leave of absence begins.
l Increase projected annual income for clients who expect to gain a source of income or receive more income from the same source, such as starting a new job, or increasing their hours of employment or hourly wages.
Example:
Mr. A reports has been unemployed for several years, but not receiving UI. He just started a job working 30 hours per week at $6 per hour. He will be paid biweekly.
Action:
Base his annual countable income on the projected wage information he provided. His annual countable income is 30 X $6 = $360. $360 X 26 = $9360.
Example:
Jen applies for MCRE in April, while she is on maternity leave from her job. She currently has no income. She expects to return to work in the third week of June and receive her first weekly $400 pay check at the end of that week.
Action:
Calculate Jen's annual income using $0 income for the four weeks of May and the first two weeks of June. Begin counting income as of the third week of June. Her annual countable income is $400 x (52 – 6) = $18,400.