Family and Children's Medicaid MA-3300 Income

X. NON-COUNTABLE INCOME

A. Non-Countable Earned Income

Do not count the following income received by a member of the budget unit:

1. Income of a child under age 21 in the budget unit who is participating in WIA (Workforce Investment Act). This applies to individuals under 21 receiving under eligibility regulations in MA-3230, Eligibility Regulations Individual Under Age 21. It does not apply to an a/b receiving as a caretaker or a pregnant woman.

2. Payments for supportive services or reimbursement of out-of-pocket expenses made to a/b volunteers serving as/in:

a. Foster grandparents,

b. Senior health aides,

c. Senior companions,

d. Services Corps of Retired Executives (SCORE),

e. Active Corps of Executives (ACE),

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(X.A.2.)

f. Retired Senior Volunteer Program (RSVP),

g. Action Cooperative Volunteer Program (ACVP),

h. University Year for Action Program (UYA),

i. Volunteers in Service to America (VISTA),

j. Other programs under Titles I, II, and III of Public Law 93-113.

3. Earned income of a child under age 21 who is a full-time student, or who is a part-time student but is not employed full-time. This exclusion does not apply to individuals receiving M-PW and FPW.

a. A full-time student has a school schedule equal to at least one-half of a full-time curriculum as defined by the institution or school program.

b. A student may attend a school, college or university or be in a vocational/technical curriculum.

c. Consider a child regularly attending school in months when he is not attending because of vacation, illness, convalescence, or family emergency if he plans to return to school. Document the record.

4. Income that is unpredictable, i.e. unplanned and arising only from time to time. Examples are occasional yard work, sporadic babysitting, winnings from gambling or bingo, etc.

5. Foster Care Board payments equal to or below the state maximum rates for recipients who serve as foster parents.

6. All Tax refunds, including Earned Income Tax Credit (EITC), whether received in advance or from a refund from the IRS, are excluded as countable income for 12 calendar months beginning the month of receipt. EITC should be easily identifiable on the a/b or financially responsible person’s wage stub. This applies to NC State EITC or Federal EITC. Refer to MA-3320, Resources.

7. Census Bureau wages for temporary employment related to census activities.

B. Non-Countable Unearned Income

Do not count the following unearned income received by a member of the budget unit:

1. Relocation payments

2. Food Stamps

3. Food (vegetables, dairy products, and meat) grown by or given to a member of the household. If homegrown produce is sold, count as earned income.

4. Child Nutrition Act and National School Lunch Act benefits.

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(X.B.)

5. Assistance from other agencies and organizations. This includes assistance provided in cash or in kind under any governmental, civic, or charitable organization whose purpose is for rehabilitation, special training, educational opportunities, or social services. No duplication must exist. This includes:

a. VR incentive payments for training, education, and allowance for dependents.

b. Grants for tuition

c. Chore services under Title XX (countable income to the chore provider)

d. Work First payments

6. Educational Assistance

a. All financial assistance received by undergraduate/graduate students for educational purposes made under Title IV of the Social Security Act, such as the Higher Education Act of 1965 (HEA) or Bureau of Indian Affairs (BIA) student assistance programs is excluded from income and resources regardless of use.

Examples: Federal Pell Grants; Presidential Access Scholarships (currently unfunded); Federal Supplemental Education Opportunity Grants; Robert C. Byrd Honors Scholarship Program; Federal Family Education Loan Program: Federal Stafford Loans, Federal Supplemental Loans for Students (SLS), Federal PLUS Loans, Federal Consolidations Loans, Unsubsidized Stafford Loans for Middle-Income Borrower; Federal Work-Study; Federal Direct Loans; and Federal Perkins Loans.

b. For educational loans, grants, or scholarships not authorized under Title IV of the Higher Education Act or Bureau of Indian Affairs student assistance programs, the portion actually used for tuition, books, fees, equipment, special clothing needs, required school insurance or child care services necessary for school attendance.

Examples: Veterans Educational Assistance Program (G.I. Bill), civic, honorary and fraternal club scholarships or loans; sports scholarships; or scholarships granted from private donations to the college, etc., except for any portion used or designated for maintenance.

7. Title VII of the Older Americans Act of 1965 benefits

8. Experimental Housing Allowance Program (EHAP) benefit

9. In-kind shelter and utility contributions paid directly to the supplier. Shelter, utilities, or household furnishings made available to the a/b at no cost.

10. Food/clothing contributions.

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(X.B.)

11. Payments received through Work Force Investment Act (WIA) or TANF designated to assist employed a/b’s with work-related expenses. Exclude these payments even though the a/b received work-related expenses.

12. Housing improvement grants approved by the N.C. Commission of Indian Affairs or funds distributed per capita or held in trust for Indian tribe members under P.L. 92-254, P.L. 93-134, or P.L. 94-540.

13. Payments to Indian tribe members as permitted under P.L. 94-114. See XI. AA, Gaming Proceeds for the Eastern Band of Cherokee Nation, for treatment of gaming proceeds.

14. Payments made by Medicare to a home renal dialysis patient as medical benefits

15. Supplemental Security Income (SSI)

16. Benefits received by an a/b who is a representative payee for another individual who is incompetent or incapable of handling his affairs. Such benefits must be accounted for separate from the a/b’s own income/resources.

17. Special one-time payments such as energy, weatherization assistance, disaster assistance, or Work First emergency assistance.

Disaster assistance includes the following Farm Service Agency payments: Crop Loss Disaster Assistance, Market Loss Disaster Assistance, and Emergency Conservation Assistance. However, a payment from insurance for damaged crops is considered a lump sum payment. See XI.T. for treatment of lump sums.

18. The value of the U.S. Department of Agriculture donated foods (surplus commodities)

19. Payments made under the Alaska Native Claims Settlement Act, P.L. 92-203

20. Any payment received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970

21. HUD Section 8 payments regardless of whether the payment is made to the a/b or the vendor

22. HUD Community Development Block Grant funds received to finance the renovation of a privately owned residence.

23. AmeriCorps stipends or child care assistance

24. Adoption assistance

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(X.B.)

25. Incentive payments made to an a/b participating in a vocational rehabilitation program. Such payments are excluded as long as a training plan is in effect. Verify and document with Vocational Rehabilitation when the training ends and the a/b becomes employed. Includes payments received from the Work Adjustment Program through the Division of Services for the Blind.

26. Title XX funds received to pay for services rendered by another individual or agency

27. The first $50 of child/spousal support or military allotment paid to the budget unit for PLA cases

28. Loans and Promissory notes

Money received as a loan (other than educational loans) by the a/b is not countable income if there is an agreed upon timetable and plan for repayment. Refer to MA-3320, Resources, for treatment as a resource.

29. Refunds of income taxes including Earned Income Tax Credit (EITC) refunds. Any amount received as a refund of taxes paid is excluded from countable income for 12 calendar months beginning the month of receipt. Refer to MA-3320, Resources, for treatment as a resource.

30. Income deemed to a Work First budget unit.

NOTE: There are few situations in which income is deemed to a Work First b.u. One is income deemed from an alien sponsor to a Work First assistance unit member. The other is income deemed from the spouse of a child in a Work First assistance unit.

32 Supportive services received under Work Force Investment Act (WIA) or TANF (i.e., childcare, transportation, meals, and other reasonable expenses)

33. Reimbursement for transportation expenses for use of the a/b’s own vehicle which is used to obtain medical care or treatment.

34. Japanese Restitution Payments

35. German Reparation Payments

36. Aleutian Restitution Payments

37. Agent Orange Settlement Payments, including Spina Bifida payments to a child of a Vietnam or Korean-war veteran.

38. Lump sum payments that meet criteria listed in XII.T.2.

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(X.B.)

39. Reverse Mortgage Payments - A reverse mortgage is an agreement in which a lending company makes regular payments to a homeowner during a specific period of time. The amount of the payment is determined by the amount of equity the homeowner has in his home.

The homeowner is allowed to remain in his home until his death or until a negotiated future date. At that time, the home is sold and the lender is repaid. Any proceeds remaining at the first of the month following receipt are a countable resource. Refer to MA-3320, Resources, for treatment as a resource.

40. Radiation Exposure Compensation Trust Fund Payments

Payments which provide compensation for injuries and deaths resulting from exposure to radiation from nuclear testing and uranium mining.

41. Susan Walker v. Bayer Corporation, et al Class Settlement Payments

Payments to hemophiliacs who contracted the HIV virus from contaminated blood products.

If the payments are placed in an account that earns interest, the interest may be countable. Follow procedures at XII.L. to calculate interest income.

42. “Project Challenge” Earnings

The individual has been found guilty of a crime and ordered to pay restitution, court costs and other expenses. The individual works in the public arena (not community service) but never receives the pay.

43. Department of Defense Payments to Certain Persons Captured and Interned by North Vietnam

Certain individuals (and their surviving spouses and children if the individuals are deceased) who were captured and interned by North Vietnam may receive payments from the Department of Defense. The amount payable for each captured individual is a one-time payment of $40,000. If the individual’s confinement exceeded 20 years, the payment may include an additional $2,000 per year, not to exceed $50,000. These payments are excluded from income. However, interest earned on unspent payments is countable income and resources.

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(X.B.)

44. Ricky Ray Hemophilia Relief Fund

Payments to individuals who contracted HIV in one of the following ways: (A) a hemophiliac who was treated with anti-hemophilic factor between July 1, 1982 and December 31, 1987, (B) The spouse or former spouse of the individual described in (a) who contracted HIV; or (C) A child of a person described in (a) or (b) who contracted HIV prenatally from his or her mother (as a result of the pregnancy, delivery or breast-feeding).

These payments are not considered as income or resources in determining eligibility.

45. Individual Development Accounts (IDAs)

IDAs are special bank accounts designed to help an individual save for education, purchase a home or start a business.

a. TANF Funded IDA

The individual's contributions are matched with funds from the state TANF program. Earnings that an individual deposits in a TANF funded IDA are countable income. Any interest accruing on such an account, on either the individual's contributions or the matching funds, is not counted as income.

b. IDA - Demonstration Project

The earnings deposited by an individual are matched with money from special funds called "demonstration project" money. Earnings that an individual deposits in this type of IDA are not excluded from income. Funds retained in a demonstration project IDA are countable resources. However, any matching funds retained in the IDA are excluded from income and resources. Interest earned on the individual's contribution is countable unearned income when received and becomes a countable resource the month after the month of receipt. Exclude interest earned on the matching funds from both income and resources.

c. Verify from documents provided to the individual by the sponsoring agency or by contact directly with the agency.







For questions or clarification on any of the policy contained in these manuals, please contact your local county office.