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Chapter: 1800 Income Program: MSSI, SFP 8 1840.0000 SSI-Related Medicaid, State Funded Programs Income is cash received at regular intervals from any source such as wages, benefits, contributions, and rentals. Income means all income, earned as well as unearned, from any source unless specifically excluded in this chapter. 1840.0100 INCOME CONCEPTS (MSSI, SFP) This section contains a discussion of the following income concepts:

1. earned and unearned income, 2. infrequent or irregular income, 3. availability of income, 4. diversion of income, 5. third party payments, 6. deeming of income, and 7. verification of income. 1840.0101 Earned and Unearned Income (MSSI, SFP) Income is classified into two categories for budgeting purposes: earned income and unearned income. All non-exempt income must be verified at application and review unless otherwise specified.

Exempt income is income (earned or unearned) that is excluded from consideration when determining eligibility or patient responsibility. Accept the individual’s statement for amount and type of exempt income, unless information is questionable or verification is required.

Earned income is the receipt of wages, salary, commission, or profit from an individual's performance of work or services, or a self-employment enterprise.

Unearned income is income for which there is no performance of work or services. Unearned income may include:

1. retirement, disability payments, unemployment/workers' compensation, etc.; 2. annuities, pensions, and other regular payments; 3. alimony and support payments; 4. dividends, interest, and royalties; 5. proceeds of life insurance policies; 6. prizes and awards; 7. gifts and inheritances; and 8. SSA, SSD, and SSI. 1840.0102 Deductions from Gross Income (MSSI, SFP) Some deductions withheld from gross income must be included as income. Examples of these deductions include:

1. premiums for Supplemental Medical Insurance (SMI/Medicare) from a Title II (Social Security) benefit, 2. premiums for health insurance or hospitalization, 3. premiums for life insurance, 4. federal and state income taxes, 5. Social Security taxes, 6. optional deductions, 7. a garnished or seized payment, 8. guardianship fees, and