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Title 8: Medicaid Page 47 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Non-MAGI-Related In-Kind Income Revised April 11, 2025 In-Kind Earned Income

1. Mr. A receives a monthly wage of $500 to manage an apartment complex and also is provided an apartment to live in at no cost. The apartment that Mr. A lives in would otherwise rent for $300 per month. Mr. A receives a noncash item in the form of shelter (free rent) and therefore, receives in-kind income. Because Mr. A receives this in-kind income in place of wages, it is considered earned income. The market value of Mr. A’s in-kind earned income ($300) is considered in the same manner as if Mr. A had been paid $300 in the form of cash (i.e., if applicable for the coverage group, $65 plus one-half is deducted). Mr. A’s total earned income is $800 ($500 + $300). 2. Mr. B is an employee of an auto dealer. In lieu of wages, Mr. B is given a car worth $4,000. Mr. B has no other car. Because the car he receives is an excluded resource in the month following the month of receipt, the value of the car is not considered as income to Mr. B. In-Kind Unearned Income Legal reference: 20 CFR 416.1123 In-kind unearned income is in-kind income that a person receives that is not in place of wages or self-employment monies. In-kind unearned income can be either:  Food or shelter. See In-Kind Support and Maintenance (ISM).  Any item that can be sold or converted to buy food or shelter. Count the full market value of in-kind unearned income that is not in the form of food or shelter in the same way as unearned cash income. Market value is how much money the item can be sold for, not the retail purchase price. Accept the recipient’s estimate of the market value of the gift, unless you have reason to doubt the estimate. Exception: If a client receives a noncash item (not food or shelter) and that item will be a partially or totally excluded resource in the month after the month it was received, do not consider it as income.