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8 TITLE 16 HEALTH AND SAFETY DELAWARE ADMINISTRATIVE CODE Royalties are payments to the holder of a copyright or patent. Royalties earned by an individual in connection with any publication of his or her work (for example, a manuscript, magazine article, artwork, etc.) are earned income. Royalties may also be paid to the owner of a mine, oil well, timber tract, or other resource, for extraction of a product, including proceeds from the direct sale of the product. Royalty compensation may be expressed as a percentage of receipts from using the property or as an amount per unit produced. Some documents verifying royalty payments will provide both a gross and a net payment amount. When the difference between the gross and the net figures is due to income taxes withheld or windfall profit tax deductions, use the gross figure when determining income. When the difference between the gross and net figures represents a production or severance tax (most oil royalties will be reduced by this tax), use the net figure when determining income. 20210.5 Payments in Foreign Currency The U.S. dollar value of a payment made in foreign currency, less expenses, is income. 20210.6 Black Lung Benefits Black Lung benefits are paid to miners and their survivors under the provisions of the Federal Mine Safety and Health Act (FMSHA). They are unearned income. Benefits under Part B of the FMSHA are paid by the Social Security Administration and benefits under Part C of the FMSHA are paid by the Department of Labor. In general, Part B benefits are paid on the third of the month while Part C benefits are paid on the fifteenth of the month. Both Part B and C benefits may be reduced by offsets and liens. Countable income will be the amount paid after application of an offset (such as workers compensation or work deductions) but before the collection of any garnishments or overpayments. 20210.7 Veterans Affairs Payments The Department of Veteran Affairs has numerous programs which make payments to veterans and their families. 20210.7.1 VA Pensions Pension payments are unearned income based on a combination of service and a nonservice-connected disability or death. All VA pension payments (except those resulting from Aid and Attendance or Housebound Allowance, paid on the basis of a Medal of Honor or paid under a special act of Congress) are based on need and do not receive the $20 general income exclusion. The Veterans' Benefits Act of 1992 (Public Law 101-508) enacted October 1, 1992, limits VA Improved Pensions for a veteran and a surviving spouse (with no children) residing in Medicaid nursing facilities. The VA Improved Pension is limited to $90 a month and is not counted as income in the eligibility or post-eligibility process. There is not interaction between the reduced pension and the personal needs allowance. If the veteran has income from other sources that is considered countable for the purposes of post-eligibility, perform the post-eligibility calculations to determine the amount of the veteran's liability to his or her cost of care. 20210.7.2 VA Compensation Benefits Compensation payments are unearned income based on service-connected disability or death. Compensation payments made to a veteran, spouse, child or widow(er) are non-needs based and do receive the $20 general income exclusion. Compensation payments to a surviving parent of a veteran are based on need and as such do not receive the $20 general income exclusion. 20210.7.3 VA Aid and Attendance and Housebound Allowance VA pays an allowance to veterans, spouses of disabled veterans and surviving spouses who are in regular need of the aid and attendance of another person or who are housebound. These allowances do not meet the definition of income because they are assistance for medical and social services. The payments are not included in the post eligibility calculation. Aid and Attendance payments may be used for whatever purpose the veteran wishes without penalty. The veteran is free to make this income available to the community spouse. 20210.7.4 VA Clothing Allowance A clothing allowance is not income and is not included in the post eligibility calculation. 20210.7.5 VA Payment Adjustment for Unusual Medical Expenses Unreimbursed expenses which exceed 5% of the maximum annual VA payment rate are considered unusual. Effective 7/1/94, payments for unusual medical expenses do not meet the definition of income and are not included in the post eligibility calculation. The veteran is required to use these payments for medical expenses. 20210.8 Child Support Support payments are considered unearned income to the child. One-third of the support payment is excluded as income in the eligibility determination. The entire support payment is included in the post eligibility calculation. 20210.9 Alimony Alimony is an allowance made by a court from the funds of one spouse to the other spouse in connection with a suit for separation or divorce. Alimony is unearned income. 20210.10 Prizes