Revision 13-2; Effective June 1, 2013

 

This section covers income that is exempt in both the eligibility and co-payment budgets.

Although it is necessary to look into the source and amount of all income, not all income is budgeted when determining eligibility and co-payment. Under federal requirements, some income is exempt from the eligibility budget and the budget to determine co-payment.

For the eligibility budget and co-payment budgets, if income meets certain criteria, document and verify if necessary, but do not budget:

  • exempt income in this section; and
  • things that are not income (see Section E-1700), such as:
    • medical care and services;
    • certain social services;
    • receipts from the sale of a resource;
    • miscellaneous items, such as income tax refunds;
    • proceeds of a loan;
    • wage-related payments;
    • mandatory payroll deductions; and
    • cafeteria plans.

 

E-2100 Income Exempt Under Federal Laws

Revision 09-4; Effective December 1, 2009

 

Many federal statutes, in addition to the Social Security Act, provide exemptions for payments from certain sources. If the income in this section meets certain criteria, exempt the income from the eligibility budget and the budget to determine co-payment.

 

E-2110 Food

Revision 09-4; Effective December 1, 2009

 

Do not count in the eligibility budget or the budget to determine co-payment any receipts for the following:

  • Value of SNAP food benefits (formerly known as food stamps) under the Food and Nutrition Act of 2008 (7 U.S.C. §2017(b)).
  • Value of federally donated foods distributed under Section 32 of Public Law 74-320 (49 Stat. 774) or Section 416 of the Agriculture Act of 1949 (63 Stat. 1058, 7 CFR 250.6(e)(9)).
  • Value of free or reduced price food for women and children under the:
    • Child Nutrition Act of 1966, Section 11(b) of Public Law 89-642 (80 Stat. 889, 42 U.S.C. 1780(b)) and Section 17 of that Act as added by Public Law 92-433 (86 Stat. 729, 42 U.S.C. 1786); and
    • National School Lunch Act, Section 13(h)(3), as amended by Section 3 of Public Law 90-302 (82 Stat. 119, 42 U.S.C. 1761(h)(3)).
  • Services, except for wages paid to residents who assist in providing congregate services such as meals and personal care, provided a resident of an eligible housing project under a congregate services program under Section 802 of the Cranston-Gonzales National Affordable Housing Act, Public Law 101-625 (104 Stat. 4313, 42 U.S.C. 8011).

 

E-2120 Housing and Utilities

Revision 12-2; Effective June 1, 2012

 

Do not count in the eligibility budget or the budget to determine co-payment any receipt for the following:

  • Assistance to prevent fuel cut-offs and to promote energy efficiency under the Emergency Energy Conservation Services Program or the Energy Crisis Assistance Program, as authorized by Section 222(a)(5) of the Economic Opportunity Act of 1964, as amended by Section 5(d)(1) of Public Law No. 93-644 and Section 5(a)(2) of Public Law 95-568 (88 Stat. 2294, as amended, 42 U.S.C. 2809(a)(5)).
  • Home energy assistance payments or allowances under title XXVI of the Omnibus Budget Reconciliation Act of 1981, Public Law 97-35, as amended (42 U.S.C. 8624(f)).
  • Value of any assistance paid with respect to a dwelling unit under:
    • the United States Housing Act of 1937;
    • the National Housing Act;
    • Section 101 of the Housing and Urban Development Act of 1965;
    • Title V of the Housing Act of 1949; or
    • Section 202(h) of the Housing Act of 1959.
  • Payments for relocating, made to persons displaced by federal or federally assisted programs that acquire real property, under Section 216 of Public Law 91-646, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (84 Stat. 1902, 42 U.S.C. 4636).

 

E-2130 Education and Employment

Revision 09-4; Effective December 1, 2009

 

Do not count in the eligibility budget or the budget to determine co-payment any receipt for the following:

  • Grants or loans to undergraduate students made or insured under programs administered by the Secretary of Education under section 507 of the Higher Education Amendments of 1968, Public Law 90-575 (82 Stat. 1063).
  • Any wages, allowances or reimbursement for transportation and attendant care costs, unless exempted on a case-by-case basis, when received by an eligible person with a disability employed in a project under title VI of the Rehabilitation Act of 1973, as added by Title II of Public Law 95-602 (92 Stat. 2992, 29 U.S.C. 795(b)(c)).
  • Student financial assistance for attendance costs received from a program funded in whole or in part under Title IV of the Higher Education Act of 1965, as amended, or under Bureau of Indian Affairs student assistance programs, if it is made available for tuition and fees normally assessed a student carrying the same academic workload, as determined by the institution, including costs for rental or purchase of any equipment, materials or supplies required of all students in the same course of study, and an allowance for books, supplies, transportation and miscellaneous personal expenses for a student attending the institution on at least a half-time basis, as determined by the institution, under Section 14(27) of Public Law 100-50, the Higher Education Technical Amendments Act of 1987 (20 U.S.C. 1087uu).

 

E-2140 Native Americans – Exempt Income

Revision 09-4; Effective December 1, 2009

 

 

E-2141 Types of Payments Excluded Without Regard to Specific Tribes or Groups

Revision 09-4; Effective December 1, 2009

 

Do not count in the eligibility budget or the budget to determine co-payment any receipt for the following:

  • Funds held in trust by the Secretary of the Interior for an Indian tribe and distributed per capita to a member of that tribe under Public Law 98-64 (97 Stat. 365, 25 U.S.C. 117b). Funds held by Alaska Native Regional and Village Corporations (ANRVC) are not held in trust by the Secretary of the Interior and therefore ANRVC dividend distributions are not excluded from countable income under this exclusion.
  • Distributions received by an individual Alaska Native or descendant of an Alaska Native from an Alaska Native Regional and Village Corporation pursuant to the Alaska Native Claims Settlement Act, as follows: cash, including cash dividends on stock received from a Native Corporation, to the extent that it does not, in the aggregate, exceed $2,000 per individual each year; stock, including stock issued or distributed by a Native Corporation as a dividend or distribution on stock; a partnership interest; land or an interest in land, including land or an interest in land received from a Native Corporation as a dividend or distribution on stock; and an interest in a settlement trust. This exclusion is pursuant to Section 15 of the Alaska Native Claims Settlement Act Amendments of 1987, Public Law 100-241 (101 Stat. 1812, 43 U.S.C. 1626(c)), effective Feb. 3, 1988.
  • Up to $2,000 per year received by Indians that is derived from individual interests in trust or restricted lands under Section 13736 of Public Law 103-66 (107 Stat. 663, 25 U.S.C. 1408, as amended).
  • Indian judgment funds that are held in trust by the Secretary of the Interior or distributed per capita pursuant to a plan prepared by the Secretary of the Interior and not disapproved by a joint resolution of the Congress under Public Law 93-134, as amended by Section 4 of Public Law 97-458 (96 Stat. 2513, 25 U.S.C. 1408). Indian judgment funds include interest and investment income accrued while such funds are so held in trust. This treatment extends to initial purchases made with Indian judgment funds. This treatment does not apply to sales or conversions of initial purchases or to subsequent purchases.

 

E-2142 Payments to Members of Specific Indian Tribes and Groups

Revision 09-4; Effective December 1, 2009

 

Do not count in the eligibility budget or the budget to determine co-payment any receipt for the following:

  • Per capita payments to members of the Red Lake Band of Chippewa Indians from the proceeds of the sale of timber and lumber on the Red Lake Reservation under Section 3 of Public Law 85-794 (72 Stat. 958).
  • Per capita distribution payments by the Blackfeet and Gros Ventre tribal governments to members which resulted from judgment funds to the tribes under Section 4 of Public Law 92-254 (86 Stat. 65) and under Section 6 of Public Law 97-408 (96 Stat. 2036).
  • Settlement fund payments and the availability of such funds to members of the Hopi and Navajo Tribes under Section 22 of Public Law 93-531 (88 Stat. 1722), as amended by Public Law 96-305 (94 Stat. 929).
  • Judgment funds distributed per capita to, or held in trust for, members of the Sac and Fox Indian Nation, and the availability of such funds under Section 6 of Public Law 94-189 (89 Stat. 1094).
  • Judgment funds distributed per capita to, or held in trust for, members of the Grand River Band of Ottawa Indians, and the availability of such funds under Section 6 of Public Law 94-540 (90 Stat. 2504).
  • Any judgment funds distributed per capita to members of the Confederated Tribes and Bands of the Yakima Indian Nation or the Apache Tribe of the Mescalero Reservation under Section 2 of Public Law 95-433 (92 Stat. 1047, 25 U.S.C. 609c-1).
  • Any judgment funds distributed per capita or made available for programs for members of the Delaware Tribe of Indians and the absentee Delaware Tribe of Western Oklahoma under Section 8 of Public Law 96-318 (94 Stat. 971).
  • All funds and distributions to members of the Passamaquoddy Tribe, the Penobscot Nation and the Houlton Band of Maliseet Indians under the Maine Indian Claims Settlement Act, and the availability of such funds under Section 9 of Public Law 96-420 (94 Stat. 1795, 25 U.S.C. 1728(c)).
  • Any distributions of judgment funds to members of the San Carlos Apache Indian Tribe of Arizona under Section 7 of Public Law 93-134 (87 Stat. 468) and Public Law 97-95 (95 Stat. 1206).
  • Any distribution of judgment funds to members of the Wyandot Tribe of Indians of Oklahoma under Section 6 of Public Law 97-371 (96 Stat. 1814).
  • Distributions of judgment funds to members of the Shawnee Tribe of Indians (Absentee Shawnee Tribe of Oklahoma, the Eastern Shawnee Tribe of Oklahoma and the Cherokee Band of Shawnee descendants) under Section 7 of Public Law 97-372 (96 Stat. 1816).
  • Judgment funds distributed per capita or made available for programs for members of the Miami Tribe of Oklahoma and the Miami Indians of Indiana under Section 7 of Public Law 97-376 (96 Stat. 1829).
  • Distributions of judgment funds to members of the Clallam Tribe of Indians of the State of Washington (Port Gamble Indian Community, Lower Elwha Tribal Community and the Jamestown Band of Clallam Indians) under Section 6 of Public Law 97-402 (96 Stat. 2021).
  • Judgment funds distributed per capita or made available for programs for members of the Pembina Chippewa Indians (Turtle Mountain Band of Chippewa Indians, Chippewa Cree Tribe of Rocky Boy's Reservation, Minnesota Chippewa Tribe, Little Shell Band of the Chippewa Indians of Montana and the nonmember Pembina descendants) under Section 9 of Public Law 97-403 (96 Stat. 2025).
  • Per capita distributions of judgment funds to members of the Assiniboine Tribe of Fort Belknap Indian Community and the Papago Tribe of Arizona under Sections 6 and 8(d) of Public Law 97-408 (96 Stat. 2036, 2038).
  • Up to $2,000 of per capita distributions of judgment funds to members of the Confederated Tribes of the Warm Springs Reservation under Section 4 of Public Law 97-436 (96 Stat. 2284).
  • Judgment funds distributed to the Red Lake Band of Chippewa Indians under Section 3 of Public Law 98-123 (97 Stat. 816).
  • Funds distributed per capita or family interest payments for members of the Assiniboine Tribe of Fort Belknap Indian Community of Montana and the Assiniboine Tribe of the Fort Peck Indian Reservation of Montana under Section 5 of Public Law 98-124 (97 Stat. 818).
  • Distributions of judgment funds and income derived therefrom to members of the Shoalwater Bay Indian Tribe under Section 5 of Public Law 98-432 (98 Stat. 1672).
  • All distributions to heirs of certain deceased Indians under Section 8 of the Old Age Assistance Claims Settlement Act, Public Law 98-500 (98 Stat. 2319).
  • Judgment funds distributed per capita or made available for any tribal program for members of the Wyandotte Tribe of Oklahoma and the Absentee Wyandottes under Section 106 of Public Law 98-602 (98 Stat. 3151).
  • Per capita and dividend payment distributions of judgment funds to members of the Santee Sioux Tribe of Nebraska, the Flandreau Santee Sioux Tribe, the Prairie Island Sioux, Lower Sioux and Shakopee Mdewakanton Sioux Communities of Minnesota under Section 8 of Public Law 99-130 (99 Stat. 552) and Section 7 of Public Law 93-134 (87 Stat. 468), as amended by Public Law 97-458 (96 Stat. 2513; 25 U.S.C. 1407).
  • Funds distributed per capita or held in trust for members of the Chippewas of Lake Superior and the Chippewas of the Mississippi under Section 6 of Public Law 99-146 (99 Stat. 782).
  • Distributions of claims settlement funds to members of the White Earth Band of Chippewa Indians as allottees, or their heirs, under Section 16 of Public Law 99-264 (100 Stat. 70).
  • Payments or distributions of judgment funds, and the availability of any amount for such payments or distributions, to members of the Saginaw Chippewa Indian Tribe of Michigan under Section 6 of Public Law 99-346 (100 Stat. 677).
  • Judgment funds distributed per capita or held in trust for members of the Chippewas of Lake Superior and the Chippewas of the Mississippi under Section 4 of Public Law 99-377 (100 Stat. 805).
  • Judgment funds distributed to members of the Cow Creek Band of Umpqua Tribe of Indians under Section 4 of Public Law 100-139 (101 Stat. 822).
  • Per capita payments of claims settlement funds to members of the Coushatta Tribe of Louisiana under Section 2 of Public Law 100-411 (102 Stat. 1097) and Section 7 of Public Law 93-134 (87 Stat. 468), as amended by Public Law 97-458 (96 Stat. 2513; 25 U.S.C. 1407).
  • Funds distributed per capita for members of the Hoopa Valley Indian Tribe and the Yurok Indian Tribe under Sections 4, 6 and 7 of Public Law 100-580 (102 Stat. 2929, 2930, 2931) and Section 3 of Public Law 98-64 (97 Stat. 365; 25 U.S.C. 117b).
  • Judgment funds held in trust by the United States, including interest and investment income accruing on such funds, and judgment funds made available for programs or distributed to members of the Wisconsin Band of Potawatomi (Hannahville Indian Community and Forest County Potawatomi) under Section 503 of Public Law 100-581 (102 Stat. 2945).
  • All funds, assets and income from the trust fund transferred to the members of the Puyallup Tribe under Section 10 of the Puyallup Tribe of Indians Settlement Act of 1989, Public Law 101-41 (103 Stat. 88, 25 U.S.C. 1773h(c)).
  • Judgment funds distributed per capita, or held in trust, or made available for programs, for members of the Seminole Nation of Oklahoma, the Seminole Tribe of Florida, the Miccosukee Tribe of Indians of Florida and the independent Seminole Indians of Florida under Section 8 of Public Law 101-277 (104 Stat. 145).
  • Payments, funds, distributions or income derived from them to members of the Seneca Nation of New York under Section 8(b) of the Seneca Nation Settlement Act of 1990, Public Law 101-503 (104 Stat. 1297, 25 U.S.C. 1774f).
  • Per capita distributions of settlement funds under Section 102 of the Fallon Paiute Shoshone Indian Tribes Water Rights Settlement Act of 1990, Public Law 101-618 (104 Stat. 3289) and Section 7 of Public Law 93-134 (87 Stat. 468), as amended by Public Law 97-458 (96 Stat. 2513; 25 U.S.C. 1407).
  • Settlement funds, assets, income, payments or distributions from Trust Funds to members of the Catawba Indian Tribe of South Carolina under Section 11(m) of Public Law 103-116 (107 Stat. 1133).
  • Settlement funds held in trust (including interest and investment income accruing on such funds) for, and payments made to, members of the Confederated Tribes of the Colville Reservation under Section 7(b) of Public Law 103-436 (108 Stat. 4579).
  • Judgment funds distributed under Section 111 of the Michigan Indian Land Claims Settlement Act (Public Law 105-143, 111 Stat. 2665).
  • Judgment funds distributed under Section 4 of the Cowlitz Indian Tribe Distribution of Judgment Funds Act (Public Law 108-222, 118 Stat. 624).

 

E-2143 Receipts from Lands Held in Trust for Certain Tribes or Groups

Revision 09-4; Effective December 1, 2009

 

Do not count in the eligibility budget or the budget to determine co-payment any receipt for the following:

  • Receipts from land held in trust by the federal government and distributed to members of certain Indian tribes under Section 6 of Public Law 94-114 (89 Stat. 579, 25 U.S.C. 459e).
  • Receipts derived from trust lands awarded to the Pueblo of Santa Ana and distributed to members of that tribe under Section 6 of Public Law 95-498 (92 Stat. 1677).
  • Receipts derived from trust lands awarded to the Pueblo of Zia of New Mexico and distributed to members of that tribe under Section 6 of Public Law 95-499 (92 Stat. 1680).

 

E-2150 Other – Exempt Income

 

Revision 16-3; Effective September 1, 2016

 

Do not count in the eligibility budget or the budget to determine co-payment any receipt for the following:

  • Compensation provided to volunteers by the Corporation for National and Community Service (CNCS), unless determined by the CNCS to constitute the minimum wage in effect under the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) or applicable state law, pursuant to 42 U.S.C. 5044(f)(1). The Corporation merged ACTION and the Commission on National and Community Service and manages three main programs:
    • Senior Corps incorporated the Foster Grandparents, Retired and Senior Volunteer and Senior Companion Programs;
    • AmeriCorps incorporated the VISTA, National Civilian Community Corps programs and the full-time demonstration program established under the 1990 Act; and
    • Learn and Serve America, formerly known as Serve America.
  • Any assistance to an individual (other than wages or salaries) under the Older Americans Act of 1965, as amended by Section 102(h)(1) of Public Law 95-478 (92 Stat. 1515, 42 U.S.C. 3020a).
  • Amounts paid as restitution to certain individuals of Japanese ancestry and Aleuts for losses suffered as a result of evacuation, relocation and internment during World War II, under the Civil Liberties Act of 1988 and the Aleutian and Pribilof Islands Restitution Act, Sections 105(f) and 206(d) of Public Law 100-383 (50 U.S.C. App. 1989 b and c).
  • Payments made on or after Jan. 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.) under Public Law 101-201 (103 Stat. 1795) and Section 10405 of Public Law 101-239 (103 Stat. 2489).
  • Payments made under Section 6 of the Radiation Exposure Compensation Act, Public Law 101-426 (104 Stat. 925, 42 U.S.C. 2210).
  • The value of any child care provided or arranged (or any payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act, as amended by Section 8(b) of Public Law 102-586 (106 Stat. 5035).
  • Payments made to individuals because of their status as victims of Nazi persecution excluded pursuant to Section 1(a) of the Victims of Nazi Persecution Act of 1994, Public Law 103-286 (108 Stat. 1450). This provision supersedes previous provisions for the exclusion of certain payments made by the governments of Germany, Austria and the Netherlands, insofar as they are made to victims of Nazi persecution. Payments from:
    • Germany are identified with the acronym ZRBG;
    • the Netherlands are identified with the acronym WUV; and
    • Austria are identified as DIE BEGUENSTIGUNGSVORSCHRIFTEN FUER GESCHAEDIGTE AUS POLITISCHEN ODER RELIGIOESEN GRUENDEN ODER AUS GRUENDEN DER ABSTAMMUNG WURDEN ANGEWENDET (§500FF ASVG), which translates to “The regulations which give preferential treatment for persons who suffered because of political or religious reasons or reasons of origin were applied (§500ff ASVG).”
  • Any matching funds from a demonstration project authorized by the Community Opportunities, Accountability, and Training and Educational Services Act of 1998 (Public Law 105-285) and any interest earned on these matching funds in an Individual Development Account, pursuant to Section 415 of Public Law 105-285 (112 Stat. 2771).
  • Any earnings, Temporary Assistance for Needy Families matching funds and interest in an Individual Development Account, pursuant to Section 103 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104-193, 42 U.S.C. 604(h)(4)).
  • Payments made to individuals who were captured and interned by the Democratic Republic of Vietnam as a result of participation in certain military operations, pursuant to Section 606 of the Departments of Labor, Health and Human Services and Education and Related Agencies Appropriations Act of 1996 (Public Law 105-78).
  • Payments made to certain Vietnam veterans' children with spina bifida, pursuant to Section 421 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act of 1997 (Public Law 104-204, 38 U.S.C. 1805(a)).
  • Payments made to the children of women Vietnam veterans who suffer from certain birth defects, pursuant to Section 401 of the Veterans Benefits and Health Care Improvement Act of 2000 (Public Law 106-419 (38 U.S.C. 1833(c)).

 

 

E-2200 Earned Income Exemptions

Revision 10-1; Effective March 1, 2010

 

 

E-2210 Income Tax Credits

Revision 10-1; Effective March 1, 2010

 

An earned income tax credit (EITC) is a special tax credit that reduces the federal tax liability of certain low-income working taxpayers. This tax credit may or may not result in a payment to the taxpayer. EITC payments are allowed as an advance from an employer or as a refund from the Internal Revenue Service.

The child tax credit (CTC) is a special refundable federal tax credit that is available to certain low-income taxpayers with earned income. They must be parents, step-parents, grandparents or foster parents with a dependent child. This child tax credit may provide a refund to individuals even if they do not owe any tax.

Any refund of federal income taxes a person receives under Section 32 of the Internal Revenue Code (relating to EITC or CTC ) and any payment a person receives from an employer under Section 3507 of the Internal Revenue Code (relating to advance payment of an EITC) is exempt. Exempt this income from the eligibility budget and the budget to determine co-payment.

Relationship of income to resources. An unspent EITC or CTC payment is not counted as a resource for the month it is received and for the nine months following the month of receipt. After that, count any remaining funds from the EITC or CTC payment as a resource. See Section F-2260, Exclusions from Resources Provided by Other Statutes.

Example: The EITC payment is received in May. The EITC payment is not income in May. Any remaining funds from the EITC payment are a resource as of the first of March of the following year.

 

E-2220 Student Earnings

Revision 09-4; Effective December 1, 2009

 

A person who is under age 22 and regularly attending school is considered a student. A student's income is exempt from the eligibility budget and the budget to determine co-payment, up to the monthly limit but not more than the calendar year annual limit.

This exemption may apply to an eligible or ineligible:

  • person;
  • child;
  • spouse; or
  • parent.

Apply the exemption:

  • consecutively to months in which there is earned income until the maximum yearly limit is exhausted or the person is no longer a student under age 22; and
  • only to a student’s own earned income.

The limits are set by the Social Security Administration for the SSI program and published annually in the Federal Register. The monthly and yearly limits are calculated annually based on increases in the cost of living index. Under this calculation, these amounts will never be lower than the previous year's amounts. However, there may be years when no increases result from the calculation.

See "Special Income Exemption for Student" in Appendix XXXI, Budget Reference Chart, for the monthly and yearly amount limits for the exemption.

 

E-2300 Unearned Income Exemptions

Revision 09-4; Effective December 1, 2009

 

 

E-2310 Refunds of Taxes Paid on Real Property or Food

Revision 09-4; Effective December 1, 2009

 

Exempt from the eligibility budget and the budget to determine co-payment any amount received from any public agency as a return or refund of taxes paid on real property or on food purchased.

 

E-2320 Assistance Based on Need

Revision 09-4; Effective December 1, 2009

 

Exempt from the eligibility budget assistance based on need that is wholly funded by a state or one of its political subdivisions, including a recognized Indian tribe. Assistance is based on need if it is provided under a program that uses the amount of income as one factor to determine eligibility. The Temporary Assistance for Needy Families (TANF) program is an example.

E-2330 Educational Assistance

Revision 09-4; Effective December 1, 2009

 

If not totally exempt under policy in Section E-2130, Education and Employment, exempt from the eligibility budget and the budget to determine co-payment any portion of a grant, scholarship, fellowship or gift used for paying tuition, fees or other necessary educational expenses at any educational institution, including vocational or technical education. Any portion of such educational assistance that is not used to pay current tuition, fees or other necessary educational expenses, but will be used for paying this type of educational expense at a future date is excluded from income in the month of receipt. This exclusion does not apply to any portion set aside or actually used for food or shelter.

 

E-2340 Home Produce for Personal Consumption

Revision 09-4; Effective December 1, 2009

 

Exempt from the eligibility budget and the budget to determine co-payment the value of food that a person and household raise, if it is consumed by the household.

 

E-2350 Child Support Payments

Revision 13-2; Effective June 1, 2013

 

Exempt from the eligibility budget one-third of the total amount of child support payments for an eligible child.

  • If a recipient receives child support as fiduciary agent for a child, this is income to the child and not to the recipient, except to the extent that the recipient uses the monies for his/her own needs.
  • The eligibility specialist must document how the child support monies are used.

See Section E-3321, Child Support Payments

 

E-2360 Payment Treated Like Other Exemptions

Revision 10-1; Effective March 1, 2010

 

Treat the following payments based on policy in Section E-2320, Assistance Based on Need, or do not consider payments as income based on policy in Section E-1700, Things That Are Not Income:

  • Alaska longevity bonus
  • Foster care payments
  • Low income energy assistance
  • Home energy assistance
  • Federal housing assistance
  • Disaster assistance

Consider a utility allowance given under any of these to be income, unless the allowance is paid directly to the utility company and the client has no access to the allowance. Utility benefits under Section E-2120, Housing and Utilities, are exempt.

When considering disaster assistance, payments precipitated by an emergency or major disaster are not counted as income or resources when determining Medicaid eligibility.

  • A major disaster is any natural catastrophe such as a hurricane or drought, or, regardless of cause, any fire, flood or explosion, which the President determines causes damage of sufficient severity and magnitude.
  • An emergency is any occasion or instance for which the President determines that federal assistance is needed to supplant state and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe.
  • Disaster Unemployment Assistance is emergency assistance authorized under P.L. 100-107 and received by individuals who are unemployed as a result of a major disaster. Individuals receiving Disaster Unemployment Assistance are not eligible for other unemployment compensation and cannot receive both at the same time.

If precipitated by an emergency or a major disaster, do not consider the following as income:

  • Payments received under the Disaster Relief Act of 1974 (P.L. 93-288, Section 312(d)), as amended by the Disaster Relief and Emergency Assistance Amendments of 1988 (P.L. 100-707, Section 105(i)) and disaster assistance comparable to these payments provided by states, local governments and disaster assistance organizations.
  • Payments from the Federal Emergency Management Agency (FEMA), Individual and Family Grant Assistance program (IFG), grants or loans by the Small Business Administration (SBA), voluntary disaster assistance organizations, such as the Red Cross, or private insurance payments for losses due to a major disaster such as flood, wind, land movement.
  • Each payment made to farmers under the Disaster Assistance Act of 1988 (P.L. 100-387) for crop losses or failure in a disaster.
  • Income received from public and private organizations by individuals working in disaster relief efforts and funded under a National Emergency Grant by WIA, Title 1 (P.L. 105-220).
  • Disaster Unemployment Assistance.
  • Payments for flood mitigation received by a homeowner under the National Flood Insurance Act of 1968, as amended by P.L. 109-64.
  • Government payments designated for the restoration of a home damaged in a disaster.

For treatment of resources from disaster assistance, see Section F-2270, Exclusions from Resources Related to Disaster Payments.

 

E-2370 Certain Gifts

Revision 09-4; Effective December 1, 2009

 

Treat the following gifts based on policy in Section E-2320, Assistance Based on Need, or do not consider the payments as income based on policy in Section E-1700, Things That Are Not Income.

 

E-2371 Certain Gifts

Revision 09-4; Effective December 1, 2009

 

Gifts from tax-exempt organizations, such as the Make-A-Wish Foundation, to children with life-threatening conditions, as required by Public Law 105-306, effective retroactively to Oct. 28, 1996, are exempt. The exclusions apply to children under age 18. The gift must be from an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 and that is exempt from taxation under Section 501(c). Document the case record with an oral or written statement from the organization that the gift was made based on the child having a life-threatening condition. No additional medical development is necessary.

The following gifts to or for the benefit of a child described above are excluded from income:

  • Any in-kind gift not converted to cash.
  • A cash gift to the extent that the cash excluded under this provision does not exceed $2,000 in any calendar year. Cash in excess of $2,000 received in a calendar year is subject to regular income counting rules.

If an in-kind gift is converted to cash, the cash counts as income in the month converted. For purposes of this exclusion, an in-kind gift is any gift other than cash, including gifts of food or shelter.

The exclusion also applies to a deeming situation if the gift is made to a parent for the benefit of a child with a life-threatening condition.

 

E-2372 Ticket for Travel

Revision 09-4; Effective December 1, 2009

 

Do not count the value of any commercial transportation ticket that is received as a gift and is not converted to cash. See Section E-3371, Gifts of Domestic Commercial Transportation Tickets.

 

E-2380 Relocation Assistance

Revision 09-4; Effective December 1, 2009

 

Relocation assistance provided under Title II of the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 (Subchapter II, Chapter 61, Title 42 of the U.S. Code) is excluded from income.

Relocation assistance provided by a state or local government that is comparable to assistance provided under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 that is subject to the treatment required by Section 216 of that Act. State or local relocation assistance payments are excluded from countable resources for nine months after the month of receipt.

 

E-2390 Crime Victims Compensation

Revision 09-4; Effective December 1, 2009

 

Do not count in the eligibility budget or the budget to determine co-payment any payment received from a fund established by a state to aid victims of crime. Unspent payments received from a fund established by a state to aid victims of crime are excluded from resources for nine months. A person is not required to apply for benefits from a crime victims’ compensation fund.

 

E-2400 Other Income Exemptions

Revision 09-4; Effective December 1, 2009

 

 

E-2410 Hazardous Duty Pay

Revision 09-4; Effective December 1, 2009

 

Do not count hazardous duty pay of a spouse or parent absent from the home because of active military service.

Do not count in the eligibility budget or the budget to determine co-payment any receipt of unearned income for the hostile fire pay or imminent danger pay portion of military income, commonly known as combat pay.

Any unspent hostile fire pay or imminent danger pay becomes a resource if retained into the following month and not otherwise excluded.

In a deeming situation, exclude from deemed resources for the nine-month period following the month of receipt the unspent portion of any retroactive payment of:

  • hostile fire and imminent danger pay (pursuant to 37 U.S.C. 310) received by the ineligible spouse or parent from one of the uniformed services; and
  • family separation allowance (pursuant to 37 U.S.C. 427) received by the ineligible spouse or parent from one of the uniformed services as a result of deployment to or while serving in a combat zone.

 

E-2420 Excluded Burial Fund Interest

Revision 09-4; Effective December 1, 2009

 

Do not count in the eligibility budget or the budget to determine co-payment interest earned on excluded burial funds and any appreciation in the value of an excluded burial arrangement that is left to accumulate and become a part of a separately identifiable burial fund. If the burial funds increase by more than $1,500 because of contributions by client actions, the amount in excess of $1,500 is a countable resource.

 

E-2430 Certain Designated Accounts

Revision 09-4; Effective December 1, 2009

 

Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, requires the representative payees of SSI recipients under age 18 to establish designated accounts when there are retroactive payments for more than six months payable to the recipients. These designated accounts, including accrued interest or other earnings produced by the accounts, are excluded from countable resources. This exclusion was effective Aug. 22, 1996.

Do not count in the eligibility budget or the budget to determine co-payment interest or other earnings on any designated account established for SSI recipients under age 18 for retroactive benefits, as required by Public Law 104-193, effective Aug. 22, 1996.

 

E-2440 Certain Health-Related Payments

Revision 10-1; Effective March 1, 2010

 

The following payments, regardless of when received, are not counted as income and are excluded from resources:

  • Payments from the Ricky Ray Hemophilia Relief Fund.
  • Payments made from any fund established pursuant to a class settlement in the case of Susan Walker v. Bayer Corporation, as required by Public Law 105-33, effective Aug. 5, 1997.
  • Payments from the Energy Employees Occupational Illness Compensation Act (EEOICA) (Public Law 106-398, October 2000) for medical benefits and compensation.