Income In Kind

Income In-kind is any support or maintenance received from a person other than a responsible relative specifically for:

  • Housing
  • Utilities
  • Food

If the client pays any portion of item it is not considered income in-kind.
Income In-kind may be earned or unearned and is subject to all appropriate income exemptions and deductions.

Treatment of Income In-Kind

For earned or unearned income in-kind, use the actual cost or net market value of the item, or value per chart, whichever is less.

If the item of need is shared with individuals who are not in the MFBU and who are not responsible for members of the MFBU, then the value of the item to MFBU member is their share of actual cost or net market value of item, or value per chart whichever is less.

ExampleExample

Adult client and her sister share an apartment and their parents pay the rent. Total rent is $600
and client's share is $300.The actual cost to client is $139 and this amount is compared to the chart value of $300.00.

Use $139.00 in budget computation as it is the lesser amount.

Exceptions

Income in-kind is not to be considered as income in the following situations:

  • When board and lodging is received during a temporary absence from the home of one month or less
  • When income in-kind is received from a parent and:
    • The child has applied for Minor Consent Services
    • The unmarried minor parent’s child is a part of the MFBU for which the SOC is being determined
    • The child is an unborn, unless the mother (over 21) is receiving income in kind and then there would be income in kind to the unborn.
    • The child (age 20 or under) is living in the home.
  • When income in kind is received as a loan, the loan agreement is verified in writing, and the provider agreement is on file in the case record.

For CalSAWS system entries for Unearned Income In-Kind [Refer to Job Aid: Medi-Cal Income In-Kind-Unearned.]

Related Topics

Non-MAGI MC Income