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Title 5: Centrally Administered Programs Page 66 Iowa Department of Human Services Employees’ Manual Chapter E: Healthy and Well Kids in Iowa (hawk-i) Types of Income Revised August 20, 2010 Taxes

Taxes 441 IAC 86.2(2)“a”(2) Exempt taxes (FICA, state, and federal income taxes) that are actually withheld from unearned income. The net amount of income after the taxes were withheld is counted. Some types of unearned income may be taxable but do not have taxes withheld. A deduction for this type of tax is not allowable. Tip Income 441 IAC 86.2(2)“a”(1) Count the amount of tips an applicant or enrollee anticipates receiving as earned income.

When tips are reflected on the pay stubs, count the amount shown.

When tips are not reflected on the pay stubs, ask the person to provide a signed and dated statement attesting to the amount of tips anticipated. Obtain a new statement at renewal even if the amount of tips anticipated to be received in the new enrollment period remains unchanged. Trust Payments 441 IAC 86.2(2)“a”(2) Count payments from trusts or conservatorships as unearned income. Unemployment Insurance Benefits 441 IAC 86.2(2)“a”(2) Count unemployment insurance benefits as unearned income. If unemployment benefits are reduced due to recoupment or because state or federal taxes are being withheld, the actual amount the person receives is counted.

It cannot be assumed that benefits will continue for the entire enrollment period. Only the amount of remaining benefits payable during the enrollment period is counted.

The screen print provided by the DHS IM unit will indicate when taxes are being withheld from unemployment insurance benefits. The INCTAX field shows if taxes are being withheld as follows: