CREATFX STUDIO

If the amount of income is expected to change, document in case comments the reason for the difference in income

If the amount of income is expected to change, document in case comments the reason for the difference in income

Document the amount of net countable income and the calculations used to arrive at countable income. See Section E-3120, Self-Employment, and Section E-6000, Self-Employment Income, for allowable expenses/deductions. Itemize these expenses/deductions and document them in case comments.

If the farmland is not part of the applicant’s/recipient’s homestead, verify that the income is at least 6 percent of the equity value to ensure the farmland is exempt.

Note: If the farm qualifies as the applicant’s/recipient’s business, it can be excluded regardless of the value or the rate of return (see Section F-4300, Resources Essential to Self-Support).

If the applicant/recipient fails to file a timely tax return, projected income must be determined based on the income and expenses from the previous six months

  • Income tax return
  • Receipts, payments and statements from other knowledgeable sources (for example, a county agent or a co-op)

If the applicant/recipient fails to file a timely tax return, projected income must be determined based on the income and expenses from the previous six months

  • type of self-employment income;
  • most recent income tax return; and
  • amount of gross income and expenses from the previous months (if income tax return is not available or earnings are expected to be significantly different).

If staff is determining earnings using the applicant’s/recipient’s tax return, identify if the earnings are anticipated to change significantly. Continue to use the earnings determined from the income tax return for the following six months or until the next income tax return is filed.

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If staff is determining earnings using the applicant’s/recipient’s IRS Schedule C form, staff will be directed to the Schedule C page in TIERS to enter the applicable fields from the applicant’s/recipient’s IRS Schedule C form. TIERS will calculate the monthly expense amount automatically.

Document in case comments the amount of net countable income and the calculations used to arrive at countable income if not using a tax return, an IRS Schedule C form, or an IRS Schedule F form.

Verify gross earnings and expenses for the past six months. (See Section E-5000, Variable Income, and Section E-6000, Self-Employment Income, regarding the averaging of earned income every six months. For treatment in the eligibility budget, see Section G-2200, Variable Income, and for treatment in the co-payment budget, see Section H-3400, How to Budget at Reviews. Note the income tax return exception.)

If the applicant/recipient fails to file a timely tax return, projected income must be determined based on the income and expenses from the previous six months

  • Sources for verification include:
  • most recent year’s income tax return;
  • IRS Schedule C, Form 1040- Profit or Loss from Business;
  • IRS Schedule F, Form 1040- Profit or Loss from Farming; and
  • receipts maintained by the applicant/recipient

Note: Reconciliation must be done when a new tax return, an IRS Schedule C form, or an IRS Schedule F form is used for projecting the recipient’s income or a change in the recipient’s income is noted at the six-month review.

Hint: If the applicant/recipient cannot provide income records (income tax receipts, etc.), have the applicant/recipient provide a written self-declaration of projected income, or use Form H1049, Client’s Statement of Self-Employment Income. Use that statement to project income for one month. Explain to the applicant/recipient the information needed to establish the applicant’s/recipient’s true income; set a one-month special review to obtain the necessary information. Use the information gathered at the special review to project the applicant’s/recipient’s earnings for six months.

If, according to SOLQ/WTPY, the difference between the RSDI gross and net benefit amounts is greater than the Medicare Part B premium, document the amount of and reason for the difference (e.g., overpayment, child support, etc.).

For reviews, if the recipient’s statement agrees with the conversion amount and there is no indication that the RSDI benefit has changed, no further verification is needed.

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