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MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL

INCOME TYPE DESCRIPTION

E-30018 Division of Welfare and Supportive Services TYPES OF EARNED AND UNEARNED INCOME Medical Assistance Manual

17 Sep 01 MTL 05/17

GIFTS GIVEN AWAY BY THE HOUSEHOLD (GIFTOR) (Cont’d)

Fair Market Value: The fair market value is the price at which the property would change hands between a willing buyer and a willing seller.

MAGI Exception: Gifts given away by a giftor are taxable unless a valid arrangement has been made with the Giftee to pay the taxes on the gift.

Verification: (not all inclusive)

- Statement from the person receiving the gift - Copy of appraisal - Form 2506

GIFTS RECEIVED BY THE HOUSEHOLD (GIFTEE)

1. Unearned

2. Excluded in Financial

3. Counted in Patient Liability

4. Non-Taxable with exception Any gift of money or property received by the giftee, either directly or indirectly, where an equal exchange (in Money or Fair Market Value) is not received in return. This may include money received for special occasions (e.g., Christmas, birthdays, anniversary, etc.).

Fair Market Value: The fair market value is the price at which the property would change hands between a willing buyer and a willing seller.

MAGI Exceptions: Gifts received by an individual are taxable only if the individual has a valid arrangement with the giftor to pay the taxes on the gift.

Verification: (not all inclusive)

- Statement from the person giving the gift - Copy of appraisal - Form 2506

HOLIDAY PAY

1. Earned

2. Counted in Financial

3. Counted in Patient Liability

4. Taxable Employer paid holiday pay.

Verification: (not all inclusive)

- Copy of pay check - Statement from Employer, Form 2074