WAC 182-509-0370 MAGI income -- How self-employment income is counted.
Effective January 9, 2014.
For purposes of determining eligibility for modified adjusted gross income (MAGI)–based Washington apple health (WAH) (see WAC 182-509-0300):
- If the person has worked long enough at the business to file a federal tax return for the previous year and it represents his or her current income, the agency determines self-employment income by using the income and deductions claimed on the previous year's tax return.
- If the person has not worked long enough at the business to file a federal tax return in the previous year, the agency permits a determination of monthly self-employment income by:
- Adding together gross self-employment income and any profit made from selling business property or equipment over the period of time the business has been in operation within the last year;
- Subtracting business expenses and income deduction expenses allowed by the Internal Revenue Service that the person would be entitled to if they were filing a full year return; and
- Averaging the income to come up with a monthly amount based on the period of time the business has been in operation within the last year.
- If the person's current income does not represent his or her projected income as evidenced by clear indications of future changes in income, the agency permits the person to estimate a monthly amount by averaging income over a representative period of time.