Disregarded Income 510-03-85-30

(Revised 6/1/2015 ML #3441)

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IM 5356

 

 

The following income types are not reported on Form 1040 and are not countable income under ACA Medicaid:

1. Non-taxable income other than
   1. Non-taxable foreign earned income,
   2. Non-taxable interest or dividend income;
   3. The non-taxable portion of Social Security Benefits

2. Supplemental Security Benefits (SSI)

3. Child support income

4. Veteran’s Administration
   1. Disability Benefits
   2. Aid and attendance payments,
   3. Homebound benefits
   4. Reimbursements for unusual medical expenses

5. Temporary Assistance for Needy Families (TANF) benefit and support services payments made by the Department or another state

6. Workforce Safety and Insurance (WSI) Benefits

7. Child’s income (See section 510-03-85-13, ACA Income Methodologies regarding when to count a child’s income.)

8. Proceeds from life, accident or health insurance

9. Federal tax credits,(i.e. Child Tax credit)

10. Federal Income tax refunds and earned income tax credits

11. Gifts and Loans

12. Proceeds from inheritances

13. Tribal General Assistance Payments

14. Subsidized Guardianship Project payments

15. Educational scholarships, awards, and fellowship grants used for educational expenses do not count as income. Count only the portion of educational income that is used for living expenses or other non-educational related expenses

16. Certain distributions, payments and student financial assistance for American Indians/Alaska Natives can only be disregarded if they were initially counted as taxable income

17. Non-recurring and recurring lump sum payments of disregarded earned or unearned income
    1. Veteran’s Administration Aid and attendance payments,
    2. Veteran’s Administration Homebound benefits
    3. Veteran’s Administration Reimbursements for unusual medical expenses
    4. Veteran’s Administration Dependents Indemnity Compensation;
    5. Insurance settlements for destroyed exempt property;
    6. Death benefits
    7. Health or long-term care insurance payments;
    8. Life Insurance proceeds
    9. Accident Insurance proceeds

18. Voluntary cash contributions from others

19. Proceeds from a loan agreement, including reverse mortgages. However, if the person lending the money receives interest, the interest received is income

20. Hostile Fire Pay when an individual is on active military duty serving in a combat zone, the full amount of the person's military pay can be excluded from taxable income

21. Deposits to a joint checking account made by a non-household member

22. Money payments made by the Department, another state, or tribal entities in connection with the State LTC Subsidy program, foster care, subsidized guardianship, or the subsidized adoption program

23. Benefits received through the Low Income Home Energy Assistance Program

24. Refugee cash assistance or grant payments

25. County general assistance that may be issued on an intermittent basis to cover emergency type situations

26. Payments from the Child and Adult Food Program for meals and snacks to licensed families who provide day care in their home

27. Payments from the family subsidy program

28. Income received as a housing allowance by programs sponsored by the United States Department of Housing and Urban Development and rent supplements or utility payments provided through the Housing Assistance Program

29. Money received by Indians from the lease or sale of natural resources, and rent or lease income, resulting from the exercise of federally-protected rights on excluded Indian property, is considered an asset conversion and is therefore not considered as income (even if the money is taken out of the IIM account in the same month it was deposited into the account). This includes distributions of per capita judgment funds or property earnings held in trust for a tribe. This does not include local Tribal funds that a Tribe distributes to individuals on a per capita basis, but which have not been held in trust by the Secretary of Interior (e.g., tribally managed gaming revenues - which is countable income)

30. Income derived from sub marginal lands, conveyed to Indian tribes and held in trust by the United States, as required by Pub. L. 94-114

31. Compensation received by volunteers participating in the ACTION program as stipulated in the Domestic Volunteer Service Act of 1973, including the National Senior Volunteer Corps, including Retired Senior Volunteer Program (RSVP), Foster Grandparents, and Senior Companion Program; National Volunteer Programs to Assist Small Businesses and Promote Volunteer Services by Persons with Business Experience; Volunteers in Service to America (VISTA) (now AmeriCorps*VISTA, not to be confused with AmeriCorps, a separate program), VISTA Literary Corps and University Year for VISTA

32. Payments made to recipients under title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970

33. All income, allowances, and bonuses received as a result of participation in the Job Corps Program


34. Payments received for the repair or replacement of lost, damaged or stolen assets

35. Homestead tax credits

36. Training funds received from Vocational Rehabilitation

37. Training allowances of up to thirty dollars per week provided through a tribal native employment works program, or the Job Opportunities and Basic Skills Training program

38. Needs-based payments, support services, and relocation expenses provided through programs established under the Workforce Investment Act (WIA), and through the Job Opportunities and Basic Skills program

39. Training stipends provided to victims of domestic violence by private, charitable organizations, such as the Seeds of Hope Gift Shop, or the Abused Adult Resource Center, for attending their educational programs

40. Tax-exempt portions of payments made as a result of the Alaska Native Claims Settlement Act

41. Payments to certain United States citizens of Japanese ancestry, resident Japanese aliens, and eligible Aleuts made under the Wartime Relocation of Civilians Reparations Act

42. Agent Orange payments

43. Crime Victims Reparation payments

44. German reparation payments made to survivors of the holocaust, and reparation payments made under sections 500 through 506 of the Austrian General Social Insurance Act

45. Assistance received under the Disaster Relief and Emergency Assistance Act of 1974 or some other federal statute, because of a presidentially declared major disaster (including disaster assistance unemployment compensation), and interest earned on that assistance. Comparable assistance received from a state or local government, or from a disaster assistance organization is also excluded

46. Allowances paid to children of Vietnam veterans who are born with spina bifida, or to children of women Vietnam veterans who are born with certain covered birth defects

47. Netherlands Reparation payments based on Nazi, but not Japanese, persecution during World War II, Public Law 103-286

48. Radiation Exposure Compensation, Public Law 101-426

49. The Medicare part B premium refunded by the Social Security Administration

50. Medicare Part D premiums, copayments, and deductibles refunded by prescription drug plans

51. For periods after October 1, 2008, all wages paid by the Census Bureau for temporary employment related to census activities will be disregarded as income

52. Reimbursements from an employer, training agency, or other organization for past or future training, or volunteer related expenses are disregarded from income. Reimbursements must be specified for an identified expense, other than normal living expenses, and used for the purpose intended. Reimbursements for normal household living expenses or maintenance such as rent or mortgage, clothing or food, are a gain or benefit and are not disregarded

Examples of disregarded reimbursements include:

1. Reimbursements for job or training-related expenses such as travel, per diem, uniforms, and transportation to and from the job or training site
2. Reimbursements for out-of-pocket expenses of volunteers incurred in the course of their work

53. The first $2,000 received by an individual age 19 and over as compensation for participation in a clinical trial for rare diseases or conditions meeting the requirements of Section 1612(b)(26) of the Act. This disregard is only allowed if approved by the Medicaid Eligibility Unit and will expire on October 5, 2015

54. Monthly food coupons distributed to individuals age 55 and over from the Sisseton-Wahpeton Oyate Lake Traverse Reservation Food Distribution program

55. Payments of flat rate insurance like a hospital plan that pays a daily rate to the client for each day in the hospital. These are usually referred to as an indemnity policy

56. Any withdrawal made from a 529 plan is excluded as income if the funds are used for the intended purposes. If the funds are withdrawn and not used for their intended purpose, they become taxable income and must be counted.