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INCOME TYPE DESCRIPTION

Division of Welfare and Supportive Services E-30011 Medical Assistance Manual TYPES OF EARNED AND UNEARNED INCOME 16 Jan 01 MTL 01/16

CLERGY HOUSING

1. Earned (if self-employed)

2. Counted in Financial

3. Counted in Patient Liability

4. Taxable (if self-employed)

Include the rental value of the home or the housing allowance as earnings from self-employment on Schedule SE (Form 1040), Self-Employment Tax, if the individual is subject to self-employment tax.

Verification:

- Copy of ledger sheets receipts and/or income tax records

- Schedule SE (form 1040)

Note: The rental value of a home (including utilities) or a designated housing allowance is not counted as income if the individual is not self- employed. The exclusion cannot be more than reasonable pay for services and the home or allowance must be provided as compensation for services as an ordained, licensed, or commissioned minister.

COMMUNITY SPOUSE MONTHLY INCOME ALLOWANCE

1. Unearned

2. Counted in Financial

3. Non-Taxable Income allocated to the community spouse for maintenance as required by the spousal impoverishment provisions. The case manager must advise the community spouse how this additional income allowance will affect other public assistance benefits such as SSI, QMB or SNAP.

Verification: (not all inclusive)

- Patient liability deduction amount from institutionalized spouse’s case

COMPENSATION FOR INJURY OR SICKNESS

1. Unearned

2. Counted in Financial

3. Non-Taxable (Conditional) Any assignment of a liability to make periodic payments as damages or as compensation on account of personal injury or sickness.

If the employee paid the entire cost of the accident or health plan, do not include any amounts received from the plan for personal injury as income.

MAGI – Payments received for damages as Qualified assignments are non-taxable. Any portion of the payment that is not for damages, including punitive damages, is taxable.