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Title 8: Medicaid Page 19 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Types of Non-MAGI-Related Income Revised April 11, 2025 Earned Income Earned Income Credit P.L. 101-508 Exclude a federal or state earned income credit whether received as a part of earned income included with regular paychecks or as a lump sum included with the income tax refund. Also see 8-D, Resources. Educational Assistance 20 CFR 416.1124“c”(3) Exclude the following educational assistance except for any part the recipient uses for general living expenses (food or shelter):

 Any impairment-related expenses necessary for school.

 Any portion of a grant, scholarship, fellowship, or gift received by or for a recipient to pay for tuition, transportation to and from school, books, or fees at any educational institution. Exclude only the amounts billed by the institution. Count any excess funds as income and prorate them over the period of intended use.

Any portion of such educational assistance that is not used to pay current tuition, fees, or other necessary educational expenses but will be used for paying this type of educational expense at a future date is excluded from income in the month of receipt. This exclusion does not apply to any portion set aside or actually used for food or shelter. Count as income any portion of grants, scholarships, fellowships, and gifts that is excluded from resources because it is set aside to pay for tuition, fees, or other necessary educational expenses but is used for some other purpose. The funds are income in the month that they are spent or in the month when the person no longer intends to use the funds to pay tuition, fees, or other necessary educational expenses.  If funds are not spent after the ninth month, they are countable resources as of the tenth month following the month of receipt.

 Veterans educational benefits such as:

• Any VA educational grants or scholarships for tuition, transportation to and from school, books, and fees at any educational institution.