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INCOME TYPE DESCRIPTION

E-30010 Division of Welfare and Supportive Services TYPES OF EARNED AND UNEARNED INCOME Medical Assistance Manual

16 Jan 01 MTL 01/16 CHILD SUPPORT (Cont’d)

Child support arrears paid to the parent after the child turns 18 shall be considered income to the parent. Verification: (not all inclusive) - Copy of court order or check - Client’s statement

CIVIL SERVICE ANNUITIES (CSA)

1. Unearned

2. Counted in Financial

3. Counted in Patient Liability

4. Taxable If the client has been a federal government employee or is the widow/widower or dependent child (under 18) of a deceased federal employee, Civil Service retirement or disability may be available. Cost-of-living increases usually occur effective March, reflected on April checks.

Verification: (not all inclusive)

- Copy of award letter - Copy of disallowance letter CLERGY INCOME

1. Unearned

2. Counted in Financial

3. Counted in Patient Liability

4. Taxable

Offerings and fees received for marriages, baptisms, funerals, masses, etc. in addition to salary, is counted as income. Offerings made directly to the religious institution are non-taxable to the client and not counted as income. Members of a religious organization that give their outside earnings to the organization must still include the earnings in their income.

Verification: (not all inclusive) - Copy of paycheck stubs - Copy of ledger sheets receipts and/or income tax records (if self-employed) - Schedule SE (Form 1040 if self- employed)

Ministerial Business Expenses as an Employee: The employee must itemize deductions on Schedule A (Form 1040) to claim allowable deductions for ministerial trade or business expenses incurred while working as an employee. Employees must also file Form 2106, Employee Business Expenses (or Form 2106-EZ, Unreimbursed Employee Business Expenses).