415-1 Determination of Income

Effective: May 1, 2012

Previous Policy

Determine income eligibility for the CHIP program by establishing a “best estimate” of all income expected to be received during the 12-month certification period with one exception.  At renewal, the client opted to use their Adjusted Gross Income (AGI) provided through the Utah State Tax Commission interface. (See section 704-9.)  Base the best estimate on the applicant's reasonable expectations and knowledge of current, past, and expected future circumstances. In determining the best estimate, use the techniques of anticipating, averaging or annualizing income to determine an appropriate monthly amount. See Sec. 415-3.  

1. Annualize all income whether it is received on a regular basis, seasonally, under contract, by commission, or received at irregular intervals throughout the year.

1. Stable Income Example - Troy works for a pet store 30 hours per week and is paid weekly $9.50/hour. He also works at a grocery store 20 hours per week and is paid every other Friday at $10 hour.

• Best estimate Pet Store = $9.50/hr x 30 hrs x 52 wks = $14,820/12 months = $1235/month

• Best estimate Grocery Store = $10/hr x 40 hrs x 26 wks = $10,400/12 months = $866.67/month

• Total countable income: $1235 + $866.67 = $2101.67/month

2. Seasonal Worker Example - For the past 5 years, John has worked as a ski instructor for 6 months of the year at $1000/month. He also works for a landscaping company during the other 6 months and earns $2000/month wages.

• Best estimate Ski Instructor = 6 months x $1000/month = $6000/12 months = $500/month

• Best estimate Landscaping = 6 months x $2000/month = $12,000/12 months = $1000/month

• Total countable income:  $500 + $1000 = $1500/month

3. Unemployment Example - Jack was laid off and is now receiving unemployment. His weekly checks are $350 and he has 15 weeks of unemployment remaining as of the first day of the application month.

• Best estimate Unemployment = $350/week x 15 weeks = $5250/12 months = $437.50/month

• Total countable income $437.50/month.

4. Sporadic or Contract Income Example - Mary, Bob and their sons, Joe and James apply for medical. Mary teaches school and is paid $2500 for 9 months of the year.  Bob works at Wal-Mart and makes $1500/month.

• Best estimate Mary = $2500/month x 9 months = $22,500/12 months = $1875/month

• Best estimate Bob = $1500/month

• Total countable income: $1875 + $1500 = $3375/month

2. Terminated income. Do not count terminated income that was received before the application month. Count terminated income if the applicant will receive their last payment in or after the application month.  Figure a monthly amount by dividing the total terminated income by 12 months.                                                                                                                                    

1. Example a

Jane applied on March 27.  She lost her job at Bee Industries on March 25 and will receive her last check on April 10 for $600 gross.  In March Jane received $1500 in gross wages.  Total Jane’s March and April earnings, $600 + $1500 = $2100.

• Best estimate of terminated income: $2100/12 months = $175/month

2. Example b

Fred and his wife Betty applied on October 25.  Fred received $2,000 in severance pay on October 10.

• Best estimate of terminated income: $2000/12 months = $166.67/month