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TABLE OF CONTENTS Part 104: Income ............................................................................................................................ 6 Part 104 Chapter 1: Introduction to Income – ABD Programs ................................................... 6 Rule 1.1: Income Rules. ........................................................................................................... 6 Part 104 Chapter 2: What is Income ........................................................................................... 7 Rule 2.1: Definition of Income. .............................................................................................. 7 Rule 2.2: Relationship of Income to Resources. ..................................................................... 8 Rule 2.3: Types of Income. ..................................................................................................... 8 Rule 2.4: Forms of Income. ..................................................................................................... 9 Rule 2.5: The Effect of Garnishment or Seizure. .................................................................... 9 Rule 2.6: When Income is Counted. ..................................................................................... 10 Rule 2.7: Income Determinations Involving Agents. ............................................................ 11 Rule 2.8: Income Derived from Joint Bank Accounts. ......................................................... 11 Rule 2.9: Income from Trusts and Conservatorships. ........................................................... 12 Part 104 Chapter 3: What is Not Income .................................................................................. 12 Rule 3.1: Items Not Considered Income for Medicaid Purposes. ........................................ 12 Part 104 Chapter 4: Exclusions for Earned and Unearned Income .......................................... 19 Rule 4.1: Exclusions that Apply to both Earned and Unearned Income. .............................. 19 Rule 4.2: General Income Exclusion..................................................................................... 19 Rule 4.3: Infrequent and Irregular Income Exclusion. .......................................................... 21 Rule 4.4: Plan for Achieving Self-Support (PASS) Exclusion. ............................................ 22 Part 104 Chapter 5: Earned Income Exclusions ....................................................................... 22 Rule 5.1: Applying the Exclusions. ....................................................................................... 22 Rule 5.2: Exclusion of Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) Payments. ............................................................................................................................... 23 Rule 5.3: Student Earned Income Exclusion (SEIE). ............................................................ 23 Rule 5.4: $65 Plus One-Half of Remainder Earned Income Exclusion. ............................... 24 Rule 5.5: Impairment-Related Work Expenses (IRWE) Exclusion. ..................................... 24 Rule 5.6: Blind Work Expenses (BWE) Exclusion............................................................... 24 Part 104 Chapter 6: Unearned Income – General Provisions ................................................... 25 Rule 6.1: Definition of Unearned Income. ............................................................................ 25 Rule 6.2: When to Count Unearned Income. ........................................................................ 25 Rule 6.3: Unearned Income Exclusions. ............................................................................... 25 Rule 6.4: Expenses Incurred to Obtain Unearned Income. ................................................... 25 Rule 6.5: Overpayment Recovery from Unearned Income. .................................................. 26 Rule 6.6: Garnishment or Other Withholdings. .................................................................... 27 Rule 6.7: Return of Previously Deducted Money. ................................................................ 28 Rule 6.8: Payments in Foreign Currency. ............................................................................. 29 Rule 6.9: Deemed Income. .................................................................................................... 29 Rule 6.10: Income Based on Need (IBON)........................................................................... 29 Rule 6.11: Assistance Based on Need (ABON). ................................................................... 29 Part 104 Chapter 7: Sources and Treatment of Unearned Income ........................................... 30 Rule 7.1: Annuities, Pensions, Retirement and Disability Payments.................................... 30 Rule 7.2: Title II, Retirement, Survivors and Disability Insurance (RSDI) Payments. ........ 30 Rule 7.3: Treatment of Retroactive Benefits. ........................................................................ 31