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Chapter: 2400 Budgeting Income Program: MSSI, SFP 37 2440.0301 Disregards and Vendor Payments (MSSI, SFP) Any expense that is paid in full by a vendor payment cannot be allowed as an expense under income disregard policy. 2440.0321 Earned Income Disregards (MSSI, SFP) This policy applies to MEDS-AD, MN, QMB, SLMB, QI-1, WD, Protected Medicaid, EMA and OSS.

The earned income disregard is only applied to earned income. The amount of the disregard is $65 plus one half of the remaining earned income. The amount of the disregard remains $65 plus one half of the remaining earned income when an individual and his spouse both have earned income. 2440.0322 Standard Disregard (MSSI) This policy applies to MEDS-AD, MN, QMB, SLMB, QI-1, WD, Protected Medicaid and EMA.

A $20 per month standard disregard applies to any type (earned or unearned) of income other than income which is provided on the basis of need. The amount of the disregard is not increased for a couple, regardless of whether one or both individuals have income. If there is only earned income then apply the entire amount of the disregard to the earned income. If there is only unearned income then apply the entire amount of the disregard to the unearned income. If there is both earned and unearned income then apply the disregard first toward the unearned income and apply any amount of the disregard remaining toward the earned income. This is done due to the effect of the earned income disregard. (Refer to passage 2440.0321 for policy on the earned income disregard.) 2440.0363 Student Earned Income Disregard (MSSI) An amount of an eligible student’s earned income may be disregarded. Refer to Appendix A-9 for the amounts. To qualify for this exclusion, the individual must be:

1. under the age of 22; and 2. a student regularly attending a school, college, university, or a course of vocational training designed to prepare them for gainful employment; and 3. disabled according to federal criteria. 2440.0367 Work Expenses of the Blind (MSSI, SFP) The following policy applies to MEDS-AD (if the blind person has been determined disabled), MN, QMB, SLMB, QI1, WD, Protected Medicaid, Emergency Medicaid to Noncitizens and OSS.

An individual eligible on the basis of blindness and who is working, may have the amount of his ordinary and necessary work related expenses deducted. If a blind individual has a spouse who is also eligible on the basis of blindness and both are working, then the amounts of ordinary and necessary work related expenses for each may be deducted. Though there is no limit on the dollar amount of expenses to be deducted, the amount must be reasonable and not exceed the amount of each individual's respective earnings from work in the month involved.

This exclusion does not apply to a blind individual who is 65 or older unless the individual was receiving Medicaid assistance on the basis of blindness in the month before the individual became 65. 2440.0368 Type of Work Expenses of the Blind (MSSI, SFP) The following policy applies to MEDS-AD, MN, QMB, SLMB, WD, Protected Medicaid, EMA and OSS.