Income Definitions

Unconditionally Available Income

Unconditionally available income is income that is potentially available to the client if they claim and accept it. The applicant or recipient must, as a condition of MC eligibility:

• Apply for all unconditionally available income, and
• Cooperate with the Eligibility Worker (EW) in providing any necessary verification.

Unconditionally available income types include:

• Disability insurance Benefits.
• Veterans benefits.
• RSDI benefits.
• Other income that is available to the client if they apply for it.
• Unemployment insurance benefits.
• PERS payoff, if client is no longer in PERS employment.

Note: Applicants/recipients are not required to apply for early retirement funds or benefits as doing so would require their agreeing to a reduced benefit.

Public Assistance benefits (i.e. CalWORKs, SSI/SSP) are not considered unconditionally available income.

The undistributed balance of an annuity account is not considered unconditionally available.

Non-Cooperation

Individuals that refuse to apply for and accept unconditionally available income are ineligible for MC. Only their eligibility will be affected; the rest of the MFBU can still be eligible if all other eligibility criteria are met.

Available Income

Income which is actually available to meet the current needs of the MFBU must be considered in the budgeting computations.

Income is considered available in the month it is received. It is considered to be received on the day it becomes available for use by the individual.

Exception: Income apportioned over a period of time is not considered available income.

Unavailable Income

Income which is NOT available to meet the current needs of an MFBU must not be used in the budget computation.

Exception: 
Garnishments are considered available income. 
Federal and state taxes which are withheld monthly from pensions, annuities, and from other types of deferred income must NOT be considered unavailable income. Count the gross amount of pension benefits as unearned income.

Unavailable income includes, but is not limited to:

Contributions

The portion of a contribution that is from a person who is living in the household:

• With no legal responsibility to support (for example, an unrelated adult male, adult child, a non-family member, or excluded child) AND,
• Used to meet that person's share of housing, utilities, food and other household costs. If actual costs are unavailable, the generic income-in-kind values will be budgeted in CalSAWS. 

Board & Care

Unavailable income includes the portion of monthly income of a Medically Needy person who is residing in a licensed board and care facility which is:

• Paid to the facility for residential care and support, AND
• In excess of the appropriate Maintenance Need Level for individuals living in the home.

The amount allowed is only what the client is actually paying the licensed board and care facility. If the cost equals or exceeds the total income, then:

• Documentation must be clear as to how the cost is being met and what amount the client actually pays.
• Do not allow that portion of charges that is paid by someone else (relatives, friends, and so on)

ExampleExample

Advance Earnings

An advance or reimbursement from an employer to cover expenses which are necessary for job performance, to the extent that it does not exceed the actual out-of-pocket costs of the employee, is unavailable income.

Overpayment Adjustments

Amounts deducted from a client's benefit payment by a public or private agency for the purpose of collecting a previous overpayment of the benefit is treated as unavailable income.

Such benefits include:

• Entitlement payments.
• Payments due to a recipient’s impairment, disability, or unemployment.
• Retirement, pension or annuity rights.

Exempt Income

Irregular or Infrequent

Unearned Income

The first $60 of sporadic unearned income per calendar quarter is exempt if either of the following conditions are met:

• The income is received not more than twice per quarter, OR
• The income cannot be reasonably anticipated.

Earned Income

Earned income not exceeding $30 per calendar quarter is exempt if either of the following conditions are met:

• The income is received not more than twice per quarter.
• The income cannot be reasonably anticipated.

Temporary Census Income

All wages paid to an individual by the Census Bureau for temporary employment related to current or future census activities.

Interest

Interest income from any source, including the client's checking or savings account can usually be estimated and anticipated. However, EWs can exempt the first $60 of interest which is not received more than twice per quarter.

Use the following chart to determine the treatment of certain interest payments:

Treatment of Interest Payments

If the interest is...	Then...
Paid monthly (any amount)	Include in budget as unearned income.
Less than $60 per quarter and received quarterly	Exempt the entire interest payment as “Irregular or Infrequent” income.
More than $60 per quarter and received quarterly	Exempt the first $60 of interest as “Irregular or Infrequent” income. Divide the remainder by 3 and include in the monthly budget as unearned income.

Student Income

Earned income, including earnings from WIA after the initial six months' exemption has expired, of an AFDC-MN or MI child is exempt if the child is either:

• A full-time student (as defined by the school he/she attends) or
• A part-time student with a school schedule that is equal to at least one-half of a full-time curriculum, and who is not employed full-time.

School attendance is defined as enrollment and attendance in a school, college, university, or in a course of technical or vocational training designed to fit the child for gainful employment. It includes participation in the Job Corps program under the Economic Opportunity Act.

Part-time employment is defined as less than 173 hours per month.

Note: A student, 18-21 years old, applying for or receiving MC on their own behalf, is considered an adult and the student exemption is NOT applicable.

Child Under 14 Years

Earnings of a child under 14 are exempt.

Earned Income Tax Credit

Any Earned Income Tax Credit (EITC) received is exempt, whether received as an advance payment or as a tax refund. Interest and dividend payments from EITC are exempt as income.

Property Tax Refunds

Refunds or rebates of taxes on real property are exempt.

Child/Spousal Support Disregard

The first $50 of each month's child/spousal support, either provided voluntarily or by court order, which is received in the current month and/or paid by the absent parent in the month due, are exempt.

Note: This will allow individuals to keep $50 from each month's child/spousal support payment in situations where the absent parent is paying timely, but the custodial parent receives a lump sum due to administrative procedures (e.g., the Family Support Division, garnishments, etc.)

Only one $50 disregard is allowed from the total child support payments received by the MFBU, even though child support is being received from more than one absent parent.

Public Assistance Grants

The following public assistance grants are exempt:

• CalWORKs (including CWES payments received while eligible for CalWORKs)
• CalWORKs Immediate Need Payments
• Refugee Cash Assistance (RCA)
• Entrant Cash Assistance (ECA)
• Resettlement and Match Grants from a Voluntary Agency (VOLAG)
• King v McMahon or Ball v Swoap payments ($100 per month compensatory payment when State Hearing Decision is not timely)
• SSI/SSP
• SSI/SSP Special Circumstances payments
• SSI/SSP Emergency Loan payments
• General Assistance payments
• Cash Value of Food Stamps
• Retroactive Court Ordered payments (for example, WRL v McMahon, Lowry v Obledo).

Social Services Payments

Payments received for social services under Title XX of the Social Security Act, whether provided
in-kind or as a direct payment to the individual for purchase of designated services, are exempt. This includes, but is not limited to:

• In-Home Supportive Services (IHSS)
• Child care
• Training and rehabilitation services

Needs-Based Assistance

Payments furnished by the state or any similar political jurisdiction, which meet all the following criteria, are exempt:

• Regularly on a periodic basis at least once a quarter or made to a specific group or class of individuals in similar situations, and
• In cash or any negotiable instrument, and
• In an amount based on the need of the individual.

Exempted by Public Law

Payments made pursuant to public law which are specifically exempted from consideration in eligibility determinations, including:

• Home Energy Assistance
• Disaster Assistance
• Payments Distributed Under the Maine Indian Claims Settlement Act of 1980

Payments from the following (and similar sources) are exempt:

• Short-Doyle Funds
• Regional Centers for the Developmentally Disabled
• Probation Departments
• Cash Assistance Program for Immigrants (CAPI).

Federal Housing Assistance

Federal Housing Assistance payments are exempt and may be in the form of rent subsidies, loans, or partial house payments under the:

• U.S. Housing Act of 1937
• National Housing Act
• Title V of the Housing Act of 1949
• Housing and Urban Development Act of 1965.

Training Expenses

Payments for training expenses paid to individuals participating in the Department of Rehabilitation training programs are exempt.

Foster Care Payments

Payments from any source received by a foster parent for the care of a foster child are exempt, except for:

• Payments made to a foster parent when a foster child is temporarily absent from the foster home for a month or more.
• Payments made to ensure availability of a room or rooms for foster children.

Adoptive Assistance Payments

Adoptive Assistance Program (AAP) payments are exempt.

Loans, Grants, Scholarships, and Fellowships

Title III Loans

Loans made under Title III of the Federal Economic Opportunity Act, Special Program to Combat Poverty in Rural Areas are exempt.

Title IV Student Assistance

Educational loans and grants awarded to graduates or undergraduates under Title IV of the Higher Education Act, are exempt as income, including the following student assistance programs:

• PELL Grants (formerly Basic Educational Opportunity Grants (BEOG)
• Federal Supplemental Educational Opportunity Grants (SEOG)
• Perkins Loans (formerly National Direct Student Loans)
• Stafford Loans (formerly called the Federally Insured Student Loan Program; includes subsidized and unsubsidized loans; the latter are also called Federal Unsubsidized Loans.)
• California State Scholarships (Cal Grant A)
• College Opportunity Grants (Cal Grant B)
• Occupational, Educational Training Grants (Cal Grant C)
• College Work Study
• Federal Parent Loan for Undergraduate Students (PLUS) Loans
• Federal Direct Loan Demonstration Program (phase in program, commencing in 1994; will replace Stafford Loan Program)
• Federal Supplemental Loans for Students
• Byrd Honors Scholarships
• Income Contingent Direct Loan Demonstration Program
• Special Programs for Students whose Families are Engaged in Migrant and Seasonal Farm Work (CAMP)
• Bureau of Indian Affairs Educational Assistance
• Upward Bound
• Presidential Access Scholarships
• National Student Savings Demonstration Program
• Federal Consolidation Loans
• Paul Douglas Teacher Scholarship Program
• Special Child Care for Disadvantaged
• Model Program Community Partnership and Counseling Grants

Other

Other loans, grants, scholarships, or fellowships awarded to undergraduate or graduate students, are exempt if:

• The award specifically limits the use of the funds for purposes other than current living needs, and
• The funds would not be available if used for any purpose other than the one specified.

Victims of Violent Crimes Program

Victims Compensation payments made by ANY state are considered exempt property for nine (9) months following the month of receipt.

Clients who report the receipt of a Victim Compensation Program payment must provide verification of the source of the payment.

Relocation Assistance

Exempt payments made by a public agency to a person who has been relocated due to:

• Redevelopment
• Urban renewal
• Freeway construction
• Any other public development involving demolition or condemnation of existing housing.

Interest earned on unspent relocation assistance payments is counted as unearned income.

Indian Claims

The following payments to Indians and to Alaskan natives are exempt:

• Payments made under Public Law 90-507 (these payments are considered personal property rather than income)
• Per capita payments made under Section 6 of Public Law 87-775 and 92-254
• Per capita payments distributed pursuant to any judgment of the Indian Claims Commission or the Court of Laws in favor of any Indian Tribe
• Payments made to Alaskan Natives under the Alaskan Native Claims Settlement Act

Note: Income obtained from stock investments under the Alaskan Native Claims Settlement Act is not exempt.

Income derived from lands held in trust and distributed by the federal government to members of the following Indian tribes are exempt. There is no limit to the amount of income which may be exempted.

• Bad River Bank of the Lake Superior Tribe of Chippewa Indians of Wisconsin
• Blackfeet Tribe, Blackfeet, Montana
• Cherokee Nation of Oklahoma, Oklahoma
• Cheyenne River Sioux Tribe, Cheyenne River, South Dakota
• Crow Creek Sioux Tribe, Crow Creek, South Dakota
• Lower Brule Sioux Tribe, Lower Brule, South Dakota
• Devil's Lake Sioux Tribe, Fort Totten, North Dakota
• Fort Belknap Indian Community, Port Belknap, Montana
• Assinboine and Sioux Tribes, Fort Peck, Montana
• Lac Courte Oreilles Band of Lake Superior Chippewa Indians, Lac Courte and Oreilles, Wisconsin
• Keweenaw Bay Indian Community, L'Anse, Michigan
• Minnesota Chippewa Tribe, White Earth, Minnesota
• Navajo Tribe, Navajo, New Mexico
• Oglala Sioux Tribe, Pine Ridge, South Dakota
• Rosebud Sioux Tribe, Rosebud, South Dakota
• Shoshone-Bannock Tribe, Fort Hall, Idaho
• Standing Rock Sioux Tribe, Standing Rock, North and South Dakota
• Seminole Indians, Florida
• Pueblos of Zia and Jemez, New Mexico
• Stockbridge Munsee Indian Community, Wisconsin
• Burns Indian Colony, Oregon

Income derived from lands held in trust and distributed by the federal government to members of any other Indian tribe not listed above are exempt, up to $2,000 of income per year. Amounts over $2,000 shall be counted as unearned income.

VISTA Payments

Payments made under the Domestic Volunteer Services Act of 1973, to VISTA volunteers are exempt.

WIA Payments

Workforce Incentive Act (WIA) (replaced the former Job Training Partnership Act [JTPA]) payments, which include Job Corps, SPEDY and Targeted Assistance, must be treated as follows:

Adults

Payments to adults specifically identified as incentive payments or training allowances must be considered exempt, as long as such reimbursements do not exceed actual training expenses.

• If these payments exceed actual training expenses, treat the difference as unearned income.
• Earnings under WIA are treated as Nonexempt Earned Income.

Children

All WIA earnings of a child are exempt for up to six months per calendar year.

The child's WIA earnings may continue to be exempt after the six month's exemption if the child is either:

• A full-time student, or
• A half-time student and the child is not employed full-time.

Other WIA payments made to a child are exempt at all times.

Verification/Information

Contact the WIA office for information concerning the program in which the client is participating to determine if criteria is met to exempt all or a portion of the income.

Job Corps In-Kind Income

Job Corps in-kind income must be treated as follows:

• If the individual is receiving a Job Corps training allowance (unearned income), then any in-kind income received is considered unearned income-in-kind.
• If the individual is in the work portion of the program and receiving earned income, then the in-kind income is considered earned income-in-kind.

Executive Volunteers

Exempt payments for supportive services or reimbursement of out-of-pocket expenses made to individuals serving in:

• Service Corps of Retired Executives (SCORE), or
• Active Corps of Executives (ACE).

Senior Citizen Volunteers

Exempt compensation received by individuals who are 60 years of age or older or for volunteer services performed under the:

• Retired Senior Volunteer Program
• Foster Grandparents Program
• Older Americans Assistance Act of 1965 “other payments”

  • Note: Compensation from the Older Americans Assistance Act of 1965 that is categorized as “free or reduced price meals” is countable for Non-MAGI. Compensation categorized as “wages” (earned or unearned) is countable for Non-MAGI and MAGI.

If there is a question concerning the funding source, contact the agency paying the individual for further information or clarification.

Senior Citizens Rent Assistance

Rebates issued according to the Senior Citizen's Property Tax Assistance Law to a renter who is 62 or older, blind or disabled is exempt income in the month received. If not used, it becomes property on the first of the following month. The amount of the rebate is based on the renter's household income.

Victims of National Socialist Persecution

Payments received from the Federal Republic of Germany as reparations from the National Socialist (Nazi) Party are exempt.

Verify that the payment is a reparation payment. Some individuals receive other pensions or monies from Germany that are NOT exempt.

Japanese-American and Aleutian Restitution/Reparation/Redress Payments

Restitution/reparation/redress payments made to Japanese-Americans and to Aleuts (or if deceased, to their survivors) who were interned or relocated during World War II are exempt. Interest resulting from these funds is counted as unearned income in the month the interest is posted. Verification is required.

The exemption includes any Japanese Reparation payments made by the Canadian government.

Austrian Social Insurance Payments

Payments made according to the Austrian General Social Insurance Act (GSIA), paragraphs 500-506, are exempt. Paragraphs 500-506 authorize payments to persons who suffered a loss resulting from imprisonment, flight from Austria, or other reasons related to political, religious or ethnic persecution, during the period from March 1933 through May 1945.

Note: Austrian social insurance payments received for other reasons are not exempt.

Interest

Interest accrued from retained Austrian GSIA payments is exempt.

Verification

To exempt an Austrian GSIA payment, the client must provide:

• A copy of the check or check stub showing an Austrian pension payor, and
• An award letter from an Austrian pension insurance agency which includes the following or equivalent language, “the regulations which give preferential treatment for persons who suffered because of political or religious reasons or reasons of origin were applied (Section 500FF ASVG)”, or
• If the client is unable to provide an award letter with the above language, obtain an SC 101 from the client stating that he/she was imprisoned or unemployed in, or forced to flee from Austria during the period 1933-1945 because of political or religious reasons, and that the Austrian check represents compensation according to Section 500FF ASVG of the GSIA

Veterans' Aid and Attendance - Not In Long Term Care (LTC)

Veteran's Aid and Attendance (A&A) benefits paid to veterans who are NOT residing in LTC must NOT be treated as income. A&A payments are considered to be a “third party payment” for in-home care and are exempt as a reimbursement. A&A benefits paid to veterans who are not in LTC are not counted when determining the Share of Cost.

Note: A&A payments which are retained after the month of receipt are considered property.

Post 9/11 GI Bill Books and Supplies Stipend

Under the provisions of the Post 9/11 GI Bill, the annual books and supplies stipend of $1,000 is paid directly to the veteran based on enrolled units. If the client is eligible for Aged Blind and Disabled Medically Needy program (ABD MN), this income is exempt.

Agent Orange

Payments made to veterans who have illnesses resulting from their exposure to Agent Orange are exempt.

• Verification is required.
• Interest resulting from these funds is exempt.

Disaster Assistance

Disaster assistance payments are exempt. Additionally, any interest earned from such payments is exempt. If the exempt funds have been combined with non-exempt funds, interest accruing on the account(s) must be prorated for the Non-MAGI MC budget.

Susan Walker v. Bayer Corporation Payments

Susan Walker v. Bayer Corporation payments are a result of a class action lawsuit and are paid to individuals who received contaminated blood products in the process of medical treatments and are exempt.

• Verification is required.
• Interest resulting from these funds is nonexempt unearned income

Quilling v. Belshe Payments

Quilling v. Belshe payments were distributed between July 1, 1992 - June 30, 1994.

Quilling v. Belshe payments are reimbursements (not income) and are treated as property.

Interest resulting from these funds is nonexempt unearned income.

Compensation in Accordance with the National Defense Authorization Act of 1997

Payments made in accordance with the National Defense Authorization Act of 1997 to individuals captured and interned by North Vietnam is exempt as income in the month of receipt. Interest earned from these funds is counted as unearned income in the month the interest is posted.

These payments may be made in the form of a check from “The Lost Army Commando Trust Fund” and the recipient should also have a letter from the Office of the Assistant Secretary of Defense that identifies the payment as having been made in accordance with the National Defense Act of 1997.

Ricky Ray Hemophilia Relief Fund Act Payments

This act provides for compassionate payments with regards to individuals with blood-clotting disorders such as hemophilia and those who contracted the human immunodeficiency virus due to contaminated blood products in the process of medical treatment.

Payments made from this fund are exempt as income in the month of receipt. Interest earned from these funds is counted as unearned income in the month the interest is posted.

Gifts to Children With Life-Threatening Conditions

In-kind gifts of any amount or cash gifts up to $2,000 in a calendar year are exempt as income in the month of receipt if given by a tax-exempt organization to a child under 18 who has a life-threatening condition. For purposes of this exemption, a child under 18 is a child who has not yet reached his/her 18th birthday at the time of gift issuance. Interest income from unspent proceeds from gifts to children with life-threatening conditions is counted as unearned income.

To verify the life-threatening condition, clients statement is sufficient. If the information is questionable the EW may request verbal or written corroboration from a physician.

To verify if the organization making the gift meets the requirements of a tax-exempt organization, the EW must obtain a copy of the organization’s IRS 501(c) exemption certification.

Radiation Exposure Compensation Payments

The Radiation Exposure Compensation Act of 1990 provides payments to some individuals who were exposed to radiation during nuclear testing in Nevada.

Payments from this fund are treated as exempt lump-sum income in the month of receipt. Interest income from these payments is counted as unearned income in the month the interest is posted.

Compensation for Participating in Clinical Trials

The first $2,000 per year of compensation received by the client and/or his/her spouse for participating in clinical trials must not be counted as income and property.

Note: Any compensation over $2,000 per year should be treated as unearned income. Interest income earned from these payments is counted as unearned income in the month the interest is posted.

The trial must meet ALL three criteria in order for the income to be exempt:

• It must be reviewed and approved by an Institutional Review Board (IRB)
• It must involve research and testing of medical treatments
• It must target a rare disease or condition

Verification

Individuals participating in the trial will receive an informed consent form which provides most of the information needed to determine whether the income exclusion applies. The informed consent form must be requested from the clinical trial participant. If the participant does not have the informed consent form, instruct him or her to obtain a copy from the clinical trial administrator.

Some clinical trial participants may submit an official letter from the administrator of the clinical trial which provides all the relevant information of the informed consent in a summarized format. This letter can be used in lieu of the informed consent form.

If the informed consent form is unavailable, request any of the following information from the clinical trial participant:

• Name and location of the clinical trial,
• Name of disease or condition, or
• Name, phone, and address of the clinical trial administrator.

Use the information provided by the participant to locate the clinical trial in the http://clinicaltrials.gov website, a registry of federally and privately supported clinical trials conducted in the United States and around the world. It provides information about a trial's purpose, who may participate, locations, and phone numbers.

If the clinical trial appears in the website, assume it is IRB approved. All clinical trials in the United States, involving human subjects, must meet federal regulations by having an IRB review and approve the research.

Once it is established that clinical trial is approved by IRB, look for the following details in the clinical trial information to determine if the clinical trial meets the other two exclusion requirements:

• Name of the condition, and
• Type of clinical trial, which is usually listed under the primary purpose, the title, or stated in the purpose summary.

In-Home Care Payments

Wages paid to a household member is exempt income and property when both of the following conditions are met:

• The caregiver is being paid for providing the in-home care to his/her spouse or minor child (i.e., under 21) living in the home, and
• The spouse or minor child is receiving those in-home services through any federal, state or local government program.

IHSS Plus Waiver Payments

The IHSS Plus Waiver program is a federal waiver that provides in-home services to federally funded full scope MC recipients that were previously provided through the IHSS Residual program.

Payments made under the waiver are exempt as income for all MC programs. The exempt payments include:

• Caretaker wages paid to a parent for providing in-home services to a minor child under age 21
• Wages paid to a spouse who provides in-home services to his/her spouse
• Restaurant meal allowances made to the IHSS Plus Waiver recipient
• Advance payments made to the IHSS Plus Waiver recipient to pay the caregiver directly

Medicare Set-Aside Accounts

A Medicare Set-Aside Account (MSA) is a financial agreement that allocates a portion of a workers compensation settlement to pay for future medical services related to the workers compensation injury, illness or disease.

MSA funds are considered unavailable income for Non-MAGI.

Interest and Dividend Income

Exempt

Interest and dividend income received from the following sources are excluded income and not counted in the Non-MAGI MC eligibility determination:

• Achieving a Better Life Experience (ABLE) Accounts,
• Burial Funds/Burial Spaces/Prepaid Burial Contracts,
• State annuities for certain veterans,
• Payments to veterans' children with certain birth defects,
• Ricky Ray Hemophilia relief fund payments,
• Radiation Exposure Compensation Trust Fund (RECTF) payments,
• Corporation for National and Community Service (CNCS) (Formerly ACTION) program payments,
• Energy Employees Occupational Illness Compensation Program (EEOICP) payments, 
• Life insurance, 
• Payments to repair/replace lost, damaged, or stolen resources,
• Individual Development Accounts (IDAs) TANF funded/demonstration project,
•  Low-Income Energy Assistance,
• Filipino Veterans Equity Compensation Fund (FVECF) payments,
• German Social Insurance payments under ZRBG (Ghetto Pensions Law),
• Japanese-American and Aleutian Restitution payments,
• Payments to victims of Nazi persecution,
• Netherlands WUV payments to victims of persecution, 
• Department of Defense (DOD) payments to certain persons captured and interned by North Vietnam.

Non-exempt

Interest or dividends paid to an individual are typically counted as unearned income unless specified otherwise in this section.

 

Young Child and Foster Youth Tax Credits (FYTC)

FYTC is a expansion of the Earned Income Tax Credit. It is exempt as income whether received as a tax refund or an advance payment.

Guaranteed Income Payment Program

Disaster relief or emergency assistance incomes are permanently exempt and not to be included in the property determination. If the monies are not related to disaster relief or emergency assistance but are Guaranteed Income payments received on or after 10/1/2022 from projects and pilots that are funded by the CA Guaranteed Income Pilot Program they are to be treated as exempt income and an exempt resource for 12 months for Non-MAGI eligibility. The source of these funds must be verified in order to apply the exemption.

Non-exempt Income

Nonexempt income includes:

• Wages (including amounts designated for meals provided by the employer or business), salaries, bonuses, and commissions from an employer or business.
  • Businesses that employ eight or more individuals in positions that normally receive tips are to allocate eight percent of the gross receipts of the restaurant as tip income. This eight percent amount is to be disregarded.
  • Tips ARE to be counted when actually received.
  • The client must attempt to get a statement from the employer verifying the actual amount of tips received. If the employer cannot or will not provide this information, the client's sworn statement will be accepted.
• Earnings under Title I of the Elementary and Secondary Education Act.
• Earnings of an adult under the Workforce Incentive Act (WIA).

  • Note: Payments to adults specifically identified as incentive payments or training allowances are considered exempt, as long as such reimbursements do not exceed actual training expenses. If payments exceed actual training expenses, treat the difference as unearned income.

• Training incentive payments and work allowances under ongoing manpower programs other than WIA.
• Payments under the Economic Opportunity Act.
• Income received for providing In Home Supportive Services.
• Net income from real or personal property including:
  • Room and board. (Use 10% of gross income as net income.)
  • Room rent requiring daily work on the part of the recipient. (Use 10% of gross income as net income.)
  • Business enterprises. (Use self-employment procedures.)
  • Sale of livestock, produce, dairy products, or other items. (Use self-employment procedures.)
  • Interest income received on unspent proceeds from the sale of a home.
• Earned Income In-Kind
• Temporary Worker's Compensation (TWC) or Temporary Disability Indemnity (TDI) payments when:
  • Received by an AFDC-MN/MI recipient whose income is counted in the MC budget, and
  • The individual continues to be employed by the employer for whom they were working when the injury incurred.
    • Note: TWC and TDI become unearned income when:
      • The person was notified in writing by the employer that they will no longer be able to offer employment to that person or that employment was being terminated, or 
      • The person notified the employer that the person does not intend to resume employment with that employer, or 
      • There is other evidence indicating that the employer-employee relationship no longer exists, or 
      • The TWC/TDI becomes Permanent Worker's Compensation.
• State Disability Insurance (SDI) Benefits are counted as earned income for AFDC-MN/MI individuals only. Eligibility for the work related disregards must be explored. This includes the $90 Work Related Expenses (WRE), and dependent care. If the client is eligible for any of these disregards, they must be allowed as deductions to the SDI income.
• SDI is considered unearned income for ABD Individuals.
• When there is both an AFDC-MN/MI person and an ABD-MN person in the MFBU, the EW must look at the of the individual who is receiving the benefit to determine how to treat the SDI.
• Retirement, Survivors, and Disability Insurance (RSDI) payments from the Social Security Administration.
• Interest earned on unspent payments of retroactive Supplemental Security Income (SSI), and Retirement, Survivors, and Disability Income (RSDI) payments.
• Interest earned on unspent restitution payments for misused benefits.
• Interest earned on unspent victims' compensation payments.
• Annuities; an amount received at regular intervals (usually monthly or quarterly) based upon an initial investment by the recipient. ExampleExampleThe client invests $8,986.00 with a brokerage firm. In return she will receive $70.81 per month for the remainder of her life. This amount ($70.81) is considered unearned income.
• Pensions and Retirement Payments. The gross amount of monthly unearned income must be budgeted. There is no deduction allowed for federal or state taxes.
  • Veteran's payments, including:
  • Pensions based on need (The flat $90 pension benefits of a single veteran or their surviving spouse in LTC is exempt income.)
  • Compensation payments
  • Educational assistance, except for the veteran's contribution to the Veterans' Educational Assistance Plan.
  • The monthly housing allowance paid under the Post 9/11 GI Bill.
  • Aid and Attendance (A&A) payments to individuals residing in LTC facilities.

  • Exception: A&A payments to a veteran NOT residing in LTC are exempt.

    • The entire A&A payment to a veteran in LTC who has a spouse and/or minor child(ren) at home is exempt.
    • Only the first $90 of an A&A payment to a veteran in LTC who does NOT have a spouse and/or minor child(ren) at home is exempt.

Related Topics

Non-MAGI MC Income

Self-Employed Income