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and received SSI and Medicaid or disability payments for the month before attaining age 65.

C. The BWE exclusion applies to earned income only and in the order discussed in Rule 5.1.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Part 104 Chapter 6: Unearned Income – General Provisions

Rule 6.1: Definition of Unearned Income.

A. Unearned income is all income that is not earned income.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 6.2: When to Count Unearned Income.

A. Unearned income is counted as income in the earliest month it is:

1. Received by the individual;

2. Credited to the individual’s account; or

3. Set aside for the individual’s use.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 6.3: Unearned Income Exclusions.

A. An exclusion is an amount of income that does not count in determining eligibility and payment amount.

1. Except for the $50/$20 general exclusion, no other unused unearned income exclusion may be applied to earned income.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 6.4: Expenses Incurred to Obtain Unearned Income.

A. The amount of unearned income which must be counted in determining eligibility for Medicaid is the gross amount due the client; however, the gross amount of unearned income may be reduced by certain expenses that are an essential factor in obtaining a particular payment(s).

B. Unearned income does not include that part of a payment that is for an essential expense incurred in getting the payment. For example: