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INCOME TYPE DESCRIPTION

Division of Welfare and Supportive Services E-30017 Medical Assistance Manual TYPES OF EARNED AND UNEARNED INCOME 17 Sep 01 MTL 05/17 FEDERAL TAX REFUNDS

1. Excluded in Financial

2. Excluded in Patient Liability

3. Non-Taxable Funds received December 31, 2009 or later, either as an advance or as a refund regardless of the tax year involved are excluded for a period of 12 months.

Verification: (not all inclusive)

- Copy of check - Copy of client’s tax forms

FOSTER CARE PAYMENTS See income type “Assistance Based on Need” GAMBLING WINNINGS

1. Unearned

2. Excluded in Financial (Conditional)

3. Counted in Patient Liability

4. Taxable

Income received from gambling winnings.

Depending on the circumstance and/or amount of income received, the individual may not be required to claim the income on their taxes. If the individual reports this type of income on their application, then the income is counted in the MAGI budgeting.

NON-MAGI: Evaluate gambling winnings under irregular and infrequent income rules. If not irregular or infrequent count in financial.

MAGI: Gambling winnings are taxable income.

Verification:

- Client statement - Statement from casino paying proceeds

GENERAL ASSISTANCE

See income type “Assistance Based on Need”

GIFTS GIVEN AWAY BY THE HOUSEHOLD (GIFTOR)

1. Taxable/Non-Taxable

2. $14,000 Annual allowance per Giftee

Any gift of money or property given away by the giftor to an individual, either directly or indirectly, where an equal exchange (in Money or Fair Market Value) is not received in return. This may include money given for special occasions (e.g., Christmas, birthdays, anniversary, etc.)

Gifts are evaluated per recipient. Each individual gift made is compared to the annual allowance. Gifts made that are $14,000 or less is non-taxable. A gift that exceeds the annual allowance of $14,000 is taxable and countable in the annualized income of the giftor.