12/30/2024
Summary:
- Reasonable compatibility threshold is updated to 30%.
- Clarifies when to use the reasonable compatibility calculation.
- Reasonable compatibility calculator is updated.
Reasonable Compatibility
Effective 06/01/2024, reasonable compatibility threshold is 30%.
Reasonable compatibility is a test to determine if the amount of reported income is reasonably compatible with income verified electronically or from other sources at application or redetermination. When reported income is less than the standard and the income verification obtained electronically is more than the income standard, perform the reasonable compatibility calculation to determine if additional verification or information is needed.
Income is reasonably compatible when the reported income is below the income standard, the electronically verified income is above the income standard, and the amounts are within 30% of each other. If the difference between the reported and verified income is more than 30%, the two are not reasonably compatible, and a VCL is needed to request an explanation.
Reasonable Compatibility Calculation
IES determines reasonable compatibility of reported income at application and redetermination when electronic sources of income are available through clearances. Reasonable compatibility is not needed when the income is verified by pay stubs, employer statements, or other acceptable forms of verification.
Perform a reasonable compatibility calculation when an income tax return is used as proof of income.
If the reported income is greater than the income standard for the individual's household size, the individual is not eligible due to excess income.
Use the chart below to determine when to use reasonable compatibility, whether to use reported income, and when to send a request for additional information.
| Reported Income |
Income Obtained from Other Sources |
Reasonable Compatibility of Reported Income to Verified Income |
Worker Action |
| Below the Standard |
Below the Standard |
Not needed |
Use the reported income. No further proof is needed. |
| Below the Standard |
Above the Standard |
Reasonably compatible (within 30%) |
Use the reported income. No further proof is needed. |
| Below the Standard |
Above the Standard |
Not reasonably compatible (greater than 30%) |
Contact the customer for an explanation and additional verification if appropriate. |
| Above the Standard |
Below the Standard |
Not needed |
Use the reported income. No further proof is needed. |
| Above the Standard |
Above the Standard |
Not needed |
Use the reported income. No further proof is needed. |
To view the reasonable compatibility calculation in IES, run eligibility then click on the reasonable compatibility tab in the EDG summary. A reasonable compatibility calculator (pdf) is available to calculate manually when needed.
To determine if the difference between the reported income and the income from another source is within 30%, follow the steps below.
- Determine the percentage of the Federal Poverty Level (FPL) for the reported income.
- Determine the percentage of the FPL of the income from another source.
- Subtract the lower result from the higher result from steps 1 & 2 to determine if they are within 30% of each other.
For the income reported on the application, use the income averaged amount (see PM 15-04-02 for FHP and PM 15-04-03 for AABD). Use common rounding to determine each percentage amount.
To determine the percentage of FPL of the reported income or the income from another source, divide the income by 100% of the FPL for the household size.
See WAG 02-07-05 for examples of when to use reasonable compatibility.
MANUAL REVISIONS
[signed copy on file]
Dulce M. Quintero
Secretary-Designate, Illinois Department of Human Services
Elizabeth Whitehorn
Director, Illinois Department of Healthcare and Family Services
