MEMORANDUM

DISCUSSION:

This memorandum introduces policy clarification for allowing income deductions when calculating MAGI-based income for MO HealthNet for Families programs.

There are two categories of deductions allowed:

• Pre-tax deductions
• Taken out of income before the income is taxed.
• Verification is required.
• Other Allowable Income Tax Deductions
• Adjustments made to the gross income to allow for certain expenses after income tax has been paid.
• Verification is required.

When an individual fails to return verification of deductions claimed, determine eligibility without allowing the deductions. Do not deny or close benefits for the failure to return income deduction verification.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

PL/ks