Always begin by looking at the income as a whole. If total attested household income is NOT reasonably compatible with EOI, you must look at each income separately.
EXAMPLE: Marilee and Jacob are married with two children both over age one (1). They attested their combined income is $2900.00 per month. EOI shows their combined income as $3250.00 per month
When the income is entered in the Reasonable Compatibility Calculator (Appendix B) it shows that their statement of combined income is below the MHK income guideline of $3201 for a household of 4.
Reasonable Compatibility Calculation Sheet (revised 04-01-2018) |
Date: |
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Budget Month: |
|
Head of Household Name: |
Marilee |
DCN: |
|
Household Size: |
4 |
Program: |
MHK 1-18 |
Income Standard for Household Size of Selected Program |
3201 |
Monthly Self-Attested Household Modified Adjusted Gross Income (MAGI) |
2900.00 |
Monthly Electronically Obtained Income (EOI) |
3250.00 |
| |
|
Are self-attested income and EOI both above the income standard for the selected program? |
NO |
If YES, household is ineligible for selected program. Stop here, determine if eligibility exists for any other program. If so, update program and income standard to desired program. If not, reject case or start adverse action. |
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If NO, continue to the next question below. |
|
| |
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Are self-attested income and EOI both below the income standard for the selected program? |
NO |
If YES, income is reasonably compatible. Accept applicant/participant attestation of income and do not request further clarification of income. |
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If NO and one income is above the income standard and one is below the income standard, compare income sources using the chart below. |
|
| |
|
Income Standard for household size of selected program: |
3201 |
| |
|
Self-Attested Household MAGI: |
2900.00 |
Electronically-Obtained Income (EOI) converted to a monthly amount: |
3250.00 |
| |
|
|
Percentage Difference
(Self-Attested amount minus EOI amount) divided by self-attested amount:
|
12.07% |
Is the difference more than 10%? |
YES |
If YES, the income is not reasonably compatible. Request clarification of income. |
|
If NO, the income is reasonably compatible. Accept client attestation of income. |
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The difference in the two (2) incomes is 12.07%.
Their combined income is not reasonably compatible.
Because there are two (2) incomes it must be determined if one or both incomes are not reasonably compatible.
Separate the two incomes and enter each one in the Reasonable Compatibility Calculator. You will ONLY look at the percentage at the bottom of the calculator. Is each individual’s income at or below 10%? If so, the income for that person is reasonably compatible.
After entering each individual income, send a Request for Information (IM-31A) asking for verification of income that is not reasonably compatible. Once you receive that verification, determine if it is reasonably compatible with their original statement.
EXAMPLE (cont’d): The application shows that Marilee’s income is $500 per month. EOI shows her income as $515 per month. The difference in her attestation and the EOI is 3%. Marilee’s statement of income is reasonably compatible. No further verification is necessary.
The application shows that Jacob’s income is $2400 per month. EOI shows his income as $2735 per month. The difference in his attestation and the EOI is 13.96%. Jacob’s statement of income is NOT reasonably compatible. Request verification for Jacob’s income.
Marilee:
Self-Attested Household MAGI: |
500.00 |
Electronically Obtained Income (EOI) converted to a monthly amount: |
515.00 |
| |
|
|
Percentage Difference
(Self-Attested amount minus EOI amount) divided by self-attested amount:
|
3.00% |
Is the difference more than 10%? |
NO |
If YES, the income is not reasonably compatible. Request clarification of income. |
|
If NO, the income is reasonably compatible. Accept client attestation of income. |
|
Jacob:
Self-Attested Household MAGI: |
2400.00 |
Electronically Obtained Income (EOI) converted to a monthly amount: |
2735.00 |
| |
|
|
Percentage Difference
(Self-Attested amount minus EOI amount) divided by self-attested amount:
|
13.96% |
Is the difference more than 10%? |
YES |
If YES, the income is not reasonably compatible. Request clarification of income. |
|
If NO, the income is reasonably compatible. Accept client attestation of income. |
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