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Title 8: Medicaid Page 22 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Types of Non-MAGI-Related Income Revised April 11, 2025 Expenses of Obtaining Income Expenses of Obtaining Income (Cont.) When a client receives payment for damages in connection with an accident settlement, subtract legal fees, unmet medical expenses that will not be reimbursed, and other essential expenses connected with the accident.

When a client receives a retroactive check from a benefit program such as Social Security, subtract legal fees connected with the claim.

Deduct essential expenses from the first and subsequent payments received until the expenses are completely offset.

A guardianship or conservatorship fee is an essential expense only if the presence of a guardian is a requirement for receiving the income. Guardianship fees are never an essential expense for obtaining Social Security or SSI benefits because the Social Security Administration never requires appointment of a legal guardian. Experience Works Income 20 CFR 416.1124(b) Exclude assistance, except wages or salaries, provided under the Experience Works program (formerly Green Thumb). Count wages and salaries as earned income. Experience Works is funded through Chapter 35 of Title 42 U.S. Code, Programs for Older Americans. Note: Refer to NJA0094, Income for the process to enter this type of income in ELIAS. Federal Department of Labor Payments 20 CFR 416.1103 and 20 CFR 416.1104 Exclude cash or in-kind support service payments made by the U.S. Department of Labor payments. Support services are payments such as child care, transportation, medical care, and meals. Count cash or in-kind financial payments made by the U.S. Department of Labor payments for training. Financial payments include payments for tuition, on-the-job training, stipends, and work experience.