- ALL FAMILY SUPPORT DIVISION OFFICES
- JULIE GIBSON, DIRECTOR
- COMPENSATION IN LIEU OF WAGES FOR MAGI
- MANUAL REVISION #15
The purpose of this memorandum is to clarify policy on budgeting compensation in lieu of wages for programs using Modified Adjusted Gross Income (MAGI) methodology in Missouri Eligibility Determination and Enrollment System (MEDES).
Per the Internal Revenue Service (IRS) publication 525 on taxable income, compensation in lieu of wages or bartering should be included in the MAGI household income.
Refer to 1805.030.20.05 Income Included Under MAGI for a definition and example of compensation in lieu of wages/bartering.
Generally, this income is reported on a Schedule C or Schedule C-EZ (Form 1040).
In MEDES use the income type compensation in lieu of wages and include in the note on the income evidence all information to support your decision.
- Review this memorandum with appropriate staff.