PM 15-04-02

New InformationUpdated with policy memo, Modified Adjusted Gross Income (MAGI) Budgeting for Medical.

Information in WAG 08-01-00 also applies to Assist, Moms and Babies, and Family Health Spenddown unless noted otherwise in this chapter.

Verify income at application, reapplication, and whenever information indicates income has changed.

When you find out that an adult or a child age 16 or older has lost employment, enter code 651 EE in Item 80 of Form 552. This includes a person included as a food stamp component member. Enter in the PERSONS column the 4-digit date that represents the calendar month in which the client will receive their last paycheck. Enter the code even if the person is still employed at another job or another person in the case is still employed. Update the code when appropriate.

Example: A client calls on 07/28/02 and reports that she is no longer employed. The client will receive her last paycheck on 08/01/02. Enter code 651 EE in Item 80 with the 4-digit date of 08/02 under the PERSONS column.

Do not verify income at each REDE if proof is already in the case record and the income does not change from month to month. Verify income which changes from month to month (e.g., earned income).

When figuring the amount of income, drop "cents" from each amount to figure the total amount.

Example 1: Ms. B works and is paid weekly. She provides the following paystubs:

Date Received Gross Amount
04/03 $100.56
04/10 136.74
04/17 159.29
04/24 167.35

To determine Ms. B's gross income, add $100, $136, $159, and $167; for a total of $562.

If Ms. B provides verification that she pays day care of $50.50 per week, use $50 per week in determining the day care income disregard.

Ms. B's 1/3 earned income disregard under Family Assist and FamilyCare/All Kids Assist would be $177 ($562 - $30 divided by 3 = $177.33).

Example 2: Ms. D provides the following pay stubs for February (cents have been dropped)

Date Received Gross Amount
02/01 $135
02/08 155
02/15 85
02/22 175
TOTAL $550

 To determine Ms. D's average weekly income, take her total gross income of $550 (dropping cents) and divide by the number of pays in the month (4). The result is her average weekly income of $137 ($550 ÷ 4 = 137.50. The cents have been dropped).

To determine her gross countable income for February, take her average weekly income ($137) and multiply by 4.3. The result is her gross countable income for February of $589 (cents are dropped).

Example 3: Mr. E provides the following paystubs for March:

Date Received Gross Amount
03/01 $124
03/08 165
03/15 115
03/22 175
03/29 135
TOTAL $714

Mr. E's average weekly income is $142 ($714 ÷ 5 = 142.80. Drop the 80¢). His countable gross income is $610 ($142 X 4.3 = $610.60. Drop the 60¢).

Example 4: Ms. F receives workers' compensation of $237.50 every 2 weeks.

Her average bi-weekly income is $237 (drop the 50¢). Her countable gross income per month is $509 ($237 X 2.15 = $509.55. Drop the 55¢).