Marketplace Verification of Income Info

Marketplace Verification of Income Info
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Please see the information below regarding verification of income documents. We have received many  inquires regarding income VCL’s.

  • Acceptance of Tax Documents as Satisfying ( Verification Document) VCL requirements:
    • Generally, tax returns from a previous tax year (no more than TWO (2) years prior to year in which coverage is sought) can be used up until 3 months after the tax filing deadline for the current year. After such date, the most current filed tax return should be the record of proof. However, if the applicant can show that no return is more recent than that submitted (cannot be more than TWO (2) years prior to year in which coverage is sought); the older return should be accepted and reviewed.
      • Example: 2014 and/or 2013 (or 2012 if they did not file in 2013) tax returns can be used until July 15th, 2015. After that date, only 2014 (or 2013 if they did not file in 2014) tax returns should be used.
    • MAGI Income can be calculated from any version of the 1040 since all relevant information is contained on such form.
    • The tax form submitted as a (Verification Document)VCL must have been signed by the consumer (print or electronically) and must have been filed with the IRS.
    • Use of tax documents to validate MAGI attestations
      • The various 1040 tax documents as well as certain tax schedules (which are submitted along with the 1040 forms) when submitted as part of a VCL for income verification should be accepted unless the violate the above time provisions.
      • Please note, a VCL document that is submitted successfully by the applicant can be rejected is when the income in their application is more than 10% lower than the MAGI figure from their VCL submission. If the MAGI income attestation on the application is higher than what is represented in the document(s) submitted, it must be accepted and no further VCL is required.EX: 1) Application = $50,000/yearSchedule C Profit and loss statement shows $40,000/yearResult = accept VCL since attestation is higher than VCL submission 

        2) 2014 Application = $32,000/year

        Most recent 1040A tax filing (2012) shows calculated MAGI as $35,000

    Result = accept VCL since attestation is only $3,000 lower than VCL MAGI which is less than 10% lower than attestation