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Example 3: 04/01 - Sammy is disabled and is receiving SSDI; he is on MA D is has an HCBS waiver. His only resource is a bank account with a $1,000 balance. 04/02 - Sammys mother created a GoFundMe account with him listed as the beneficiary to assist with his daily living. The account raised $30,000. 04/10 - He cashes in the GoFundMe account and deposits it into his bank account leaving a bank balance of $31,000. Sammy gives his children $30,000. Adequate consideration was not received resulting in a transfer of property penalty. Eligibility: • 05/01 – A transfer of property penalty is imposed 05/01 ongoing (MED 3) Funds received through crowdfunding platforms may be excluded from gross income and MAGI calculation if they qualify as a personal gift.8

Funds are considered non-taxable gifts when they are provided without expectation of receiving goods, services, or any other benefit in return (e.g., medical expenses, funeral costs, or personal disasters). Funds are considered taxable if contributors expect to receive services, goods, or another benefit; campaign is for a business, startup, or capital contribution; or funds are provided by an employer for an employee. Funds are typically considered as income in the month funds are disbursed and available to the beneficiary. Remaining funds should be excluded for ongoing months. Funds contributed to launch a business, create a product, or as part of reward-based crowdfunding (i.e., Kickstarter) are generally considered taxable business income and normal business expense deductions may apply.9 If there are any questions, please send them to PAL for review. 2615.10.00 BANK AND OTHER ACCOUNTS Bank accounts refer to funds in a bank, credit union, savings and loan association, or any other financial institution that are usually payable on demand. Bank accounts may be solely or jointly owned. Joint ownership exists when the right to liquidate the account is shared by more than one individual. This section provides information on: • Checking and savings accounts