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2810.10.00 TIPS The number of tips reported by the employee is included as earned income. Many times, an employer will include on the pay stub of the employee an amount the employer must report to the IRS for tax purposes. This is an allocated amount which may or may not be considered as the amount earned or received by the employee. The tip amount reported by the employee can be accepted unless questioned. In some instances, the employee reports actual tips to the employer. In this instance, the employer can verify actual tips earned. The individual should keep records daily if the tips are not reported to the employer, so this information can be used for verification. NOTE: Worker should be aware that when the hourly wage is less than the minimum wage, the possibility of tips may exist. 2810.15.00 SHELTERED WORKSHOP EARNINGS Any payments from a sheltered workshop are included as earned income. A sheltered workshop is a special workshop offering limited employment experience for the mentally or physically handicapped. Refer to IHCPPM 3455.15.10.05. 2810.20.00 EARNINGS OF CHILDREN (MED 1) All the earned income of a child under age 14 is disregarded.6 2810.25.00 EARNINGS (EARNED AND UNEARNED) OF CHILDREN OR TAX DEPENDENTS (MED 3) NOTE: The current policy reflects general information confirmed at time of review from the irs.gov website and is not intended to be given as tax advice to Medicaid applicants. Please direct applicants/members to review the irs.gov website for accurate and current tax-filing rules. Household income does not include the MAGI-based income (earned or unearned) of a child who is included in the household of his or her natural, adopted or stepparent, whether a tax return is filed. However, if such child or tax dependent is required to file a tax return pursuant to the Internal Revenue Code for the taxable year, the child’s or tax dependent’s MAGI-based income will be included in the calculation of household income for eligibility purposes. The Internal Revenue Service website at https://www.irs.gov presents instructions, schedules, and tables that provide minimum amounts for when a child or tax dependent must file a tax return based upon earned income per IRS rules (please note that the DFR must accept self-