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Title 8: Medicaid Page 48 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Non-MAGI-Related In-Kind Income Revised April 11, 2025 In-Kind Unearned Income

Mr. T received a gift of a boat with a value of $1,000. The boat may be sold or converted to cash that may then be used to obtain food or shelter. It will not be an excluded resource in the month following receipt. Therefore, the receipt of the boat is in-kind unearned income. The boat’s market value of $1,000 is considered as unearned income to Mr. T. The income exclusion for infrequent or irregular income may apply to in-kind income. See Infrequent or Irregular Income. An SSI recipient’s in-kind unearned income that is not in the form of food or shelter is reflected on the SDX as unearned income type “S” (other income). In-Kind Support and Maintenance (ISM) Legal reference: 20 CFR 416.1130, 20 CFR 416.1132-416.1133 In-kind support and maintenance is in-kind unearned income in the form of shelter. Shelter includes:  Room rent and mortgage payments.  Real property taxes.  Heating fuel, gas, electricity, water, and sewage.  Garbage collection service. ISM is valued according to either the value of one-third reduction (VTR) or presumed maximum value (PMV) rule. The VTR rule applies only when a client lives in another person’s household. Note: Food expenses are omitted from ISM calculations. Food expenses would not be included in the actual calculation; they will only be considered in determining whether to apply the VTR or PMV rule. Determining the Client’s Living Arrangement To determine which rule to use, first establish if the client is living in the client’s own household or in the household of another. See Living in Another Person’s Household. If a client is living in the household of another, then decide if the person is paying a pro rata share. See Paying a Pro Rata Share.