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Title 8: Medicaid Page 31 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Types of Non-MAGI-Related Income Revised April 11, 2025 Insurance Insurance (Cont.) • Funeral-related expenses, such as clothing to wear to the funeral or food for relatives.

• Burial plot.

• Interment.

If death benefits are received in more than one month, assume that the funds first received are the first spent on the deceased’s last illness and burial. Note: Amounts not spent in the month of receipt become countable resources in the next month.

Mr. B receives death benefits of $1,000 in April and $1,000 in May. Funeral expenses are $1,500. $500 is counted as income in May. Interest Income 20 CFR 416.1103, 20 CFR 416.1121(c), and 20 CFR 416.1124(c)(9) Interest earned on countable resources is excluded income when determining eligibility. Interest earned on excluded resources is excluded income except for the following, which are countable unearned income:  Interest earned on unspent tax refunds related to an Earned Income Tax Credit or a Child Tax Credit.

 Interest earned on gifts to children under age 18 who have a life-threatening condition. The gift must be from an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 and be exempt from taxation under Section 501(a).

 Interest earned on the proceeds from the sale of the homestead that was excluded for up to three months when the client intends to purchase another home.

 Interest earned on unspent relocation assistance payments.

 Interest earned by SSI or Social Security Disability benefits that are excluded from resources for nine months after receipt.

 Interest earned on unspent victim’s compensation payments.