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6 TITLE 16 HEALTH AND SAFETY DELAWARE ADMINISTRATIVE CODE

Excluded income is an amount which is income by definition but does not count in determining eligibility because of Federal laws. The following list gives examples of items that are defined as income but are excluded for eligibility:

1. ACTION Programs/Domestic Volunteer Services: Payments to volunteers under chapter 66 of title 42 of the U.S. Code. Domestic Volunteer Services (ACTION programs) are excluded from income and resources. Examples are Volunteers in Service to America (VISTA), Retired Senior Volunteer Program (RSVP), Foster Grandparent Program and Senior Companion Program. NOTE: Community Service employment paid as a wage or salary under chapter 35 of title 42 of the U.S. Code, Programs for Older Americans is earned income.

2. Low Income Energy Assistance.

3. Victims compensation payments from a State established fund.

4. German reparations payments.

5. Agent orange settlement payments. Impairment-related work expenses. Interest and dividend income. See Long Term Care Section for more examples of excluded income.

17300.3.2.2 What Is Not Income Some items that an individual receives are not income because they do not meet the definition of income. The following lists examples of items that are not income for SSI purposes (or QMB program):

1. Rebates and refunds of money an individual has already paid

2. Personal services

3. Certain assistance under medical or social service programs

4. Room and board received during a medical confinement

5. Income tax refunds and Earned Income Tax Credit

6. Payments by credit life or credit disability insurance

7. Proceeds of a loan

8. Bills paid by a third party

9. Receipts from the sale, exchange or replacement of a resource

10. Weatherization assistance (insulation, storm doors and windows, etc.)

11. Replacement of income already received. (If income is lost, stolen, or destroyed and the claimant receives a replacement (e.g., for a stolen Title II check), the replacement is not income.)

12. Return of erroneous payments In addition, Medicaid does not count AFDC/GA payments or payments made on behalf of foster children as income to the QMB's.

17300.3.2.3 Gross Income

Gross income is income from all sources before any disregards, exemptions, or deductions such as taxes, health insurance premiums such as Medicare, life insurance premiums, loan payments, garnishments, credit union, alimony, child support (including court ordered), union dues, etc. have been applied.

17300.3.2.4 Earned Income

Earned income is income that is received as a result of work activity. This includes wages, salaries, tips and commissions before taxes or other deductions such as pension fund, garnishment, or optional deductions such as insurance premiums or savings bonds or accounts.

A wage or salary paid under chapter 35 of title 42 of the U.S. Code, The Older Americans Act (for example, Senior Community Service Employment) is earned income. Anything provided under chapter 35 of title 42 other than a wage or salary (volunteer programs) is excluded from income. Also, payments for services performed in a sheltered workshop or work activities center program are earned income.

See the Long Term Care section for additional types of earned income.

17300.3.2.4.1 Self-Employment Income

A self-employment standard deduction is used to calculate self-employment income. The self-employment standard deduction is considered the cost to produce income. The self-employment standard deduction is a percentage that is determined annually and announced in the Cost-of-Living Adjustment (COLA) Administrative Notice each October.

To calculate self-employment income, use the gross proceeds and subtract the self- employment standard deduction. The result is the amount included in the individual’s gross income. Standard earned income deductions are then applied to the individual’s gross income.

To receive the self-employment standard deduction, the individual must provide verification that costs are incurred to produce the self-employment income. Verification can include, but is not limited to, tax records, ledgers, business records, receipts, check receipts, and business statements. The individual does not have to verify all business costs to receive the standard deduction.

If the individual does not claim or verify any costs to produce the self-employment income, the self-employment standard deduction will not be applied.