1805.030.00 Modified Adjusted Gross Income (MAGI) Methodology

1805.030.15.10 Reasonable Compatibility (RC) With More Than One Income in the Household

IM-30 April 3, 2023; IM-09 January 25, 2019

To determine RC for households with more than one income:

  1. Combine all of the self-attested income amounts in the MAGI household
  2. Combine all of the electronically obtained income (EOI) in the MAGI household
  3. Compare both amounts to the program threshold
    1. If they are both under the program threshold, the income is reasonably compatible.
    2. If they are not both under the program threshold, but are within 10%, the income is reasonably compatible. Refer to Appendix B – Reasonable Compatibility Calculator.

Example: Marilee and Jacob have applied for their two children. Jacob self-attested to $1500 in wages and Marilee self-attested to $1400 in wages. The combined income is $2900.00 per month. Jacob’s EOI shows $1700 and Marilee’s shows $1550, or $3250 combined. Their income is RC because the combined self-attested income and the combined EOI are both under the Title XIX program threshold.

If the combined MAGI household income is not RC, complete an RC determination using income of the individual participants:

  1. Determine the self-attested income amount of the first participant
  2. Determine the EOI amount of the same participant
  3. Determine if the incomes are within 10% of each other (refer to Appendix B – Reasonable Compatibility Calculator)
    1. If the incomes are within 10%, the income is RC.
    2. If the incomes are not within 10%, contact the participant for more information.
  4. Repeat steps 1-3 for each participant with income

Example: Marcy and Joe apply for AEG and self-attest income of $2000, which is under the Title XIX program threshold for their household size. The combined EOI for both is $2400 which is over the threshold. The amounts are also not within 10%. However, Marcy’s self-attested amount is $1000 and her EOI shows $1074 which is within 10% of her self-attested, so her income is RC. Joe’s self-attested is $1000, but his EOI shows $1326, which is not within 10% of his self-attested. Clarification is needed for Joe’s income.