Page 9

Excluded reimbursements include, but are not limited to: 1. Exclude reimbursements provided over and above basic wages for job or training- related expenses (i.e., travel, per diem, uniforms and transportation to/from job or training site). However, these expenses, if not reimbursed, are not otherwise deductible. Exclude reimbursements to migrant workers for travel expenses. 2. Reimbursement of a volunteer’s out-of-pocket expenses incurred in their voluntary work; 3. Dependent care and medical reimbursements including VA reimbursements for unusual medical expenses; 4. Reimbursements the household receives to pay for services provided by Title 20 of the Social Security Act. 5. Renters Credit or Homeowners Credit.

RENTAL INCOME: Count as unearned income rental income and rental partnership income when the client is not materially participating in the rental operation and decision-making a minimum of 10 hours per week. Allowable expenses of producing the income (property tax, mortgage interest payment, etc. See CMA 503-1 Self-Employment Income) are deducted to determine net countable income.

SALE OF A RESOURCE: ACA: Any gain received from selling a resource is a capital gain and is taxable. All Medicaid Programs: When income from the sale of a personal resource is received in installment payments, the payments minus cost of doing business are countable income. ABD and Family Medically Needy: Exclude installment payments received on loans/contracts that are countable resources. Count the entire installment payment as income when received on an excluded sale/loan. Example: Joe sells his trailer for $1,000. He receives a down payment of $300 with the $700 balance to be paid in $100 monthly installments. If he can readily liquidate the installment contract, the $700 balance is a countable resource, and the monthly payments are excluded. If he cannot easily liquidate the installment contract (e.g., language states it cannot be sold) the contract is an excluded resource but the $300 down payment and $100 monthly payments are counted, in their entirety.

ABD and Family Medically Needy: When proceeds from the sale of a personal resource are received in ONE payment the payment is not considered income but instead a resource in the month received (the resource has simply changed forms).

See section CMA 503-1 Self-Employment Income ‘Capital Gains’ for sale of self- employment resources.