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ABD and Family Medicaid: Count payments received from excluded CFDs. Deduct contract-related costs from gross income to determine countable net income. Prorate the net countable income over the period intended to cover. NOTE: Allowable contract-related costs include escrow fees, property taxes and insurance. Count the full payment (interest earned and principal) when the contract for deed is an excluded resource.

Exclude the full payment received from a countable CFD. The payment on principal is excluded because it is simply a resource changing form (from CFD to cash), and interest on countable assets is excluded. The unscheduled portion of an early contract for deed payment made on an excluded CFD is income in the month of receipt and a resource thereafter. An early payment received on a countable CFD is considered resource in the month of receipt and thereafter. Scheduled balloon payments are prorated over the period intended to cover.

CONTRIBUTIONS: Count contributions that can be prospected and cannot be excluded as either a valid loan or irregular/infrequent income. See Gifts later in this section.

DIVIDEND AND ROYALTY INCOME: Countable.

NOTE: See section CMA 501-2 Native American Income for royalties from Indian lands, oil, gas, and timber. Royalties received as part of a trade or business, or as the result of an individual’s work being published are countable earned income. All other royalties are countable unearned income. Income production costs, including production and/or severance taxes, can be deducted from unearned royalties. However, income taxes or windfall profit taxes withheld cannot be deducted. Expenses can only be deducted from earned royalties when the income is derived from a current self-employment business.

Dividend and royalty income is counted when received; recurrent payments may be averaged to prospect future payments.

EDUCATIONAL INCOME: Scholarships, grants, and similar educational assistance are excluded for ACA Medicaid when they are directly related to attendance at an institution of higher education. Any portion not used for educational purposes (such as room, board, transportation, or other non‑education expenses) is countable income. Loans, including student loans, are fully excluded for ACA Medicaid.