The CAO must consider profit from self-employment as gross income when deciding on an individual’s eligibility for Medical Assistance (MA). To figure out profit, the CAO must subtract the costs of getting the income from the total amount received.
55 Pa. Code § 181.92 55 Pa. Code § 181.272
For SSI-related, TANF-related and GA-related MA, the CAO must allow an individual to take the following deductions from profit:
Personal deduction.
For MAGI-related MA, the CAO must allow an individual to take the following disregards and deductions from profit (if applicable):
Tax Deductions- all self-employment deductions allowable by the IRS can be deducted from the individual's gross income
5 % Income Disregard
The individual must cooperate in getting proof of their total receipts from self-employment and their costs of doing business.
Types of proof include, but are not limited to, the following:
Written statements from tenants, roomers, boarders, or roomer/boarders;
Business records.
Tax returns from the year before.
Self-employment form for MAWD (see Chapter 316, Section 316.22, Employment)
Updated July 16, 2024, Replacing August 31, 2018