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INCOME TYPE DESCRIPTION

E-30020 Division of Welfare and Supportive Services TYPES OF EARNED AND UNEARNED INCOME Medical Assistance Manual

14 Mar 01 MTL 14/01 INDIAN TRUSTS OR RESTRICTED LANDS

1. Unearned

2. Excluded in Financial

3. Counted in Patient Liability

4. Non-Taxable This income (often called individual Indian trust or lease income) generally comes from interests in lands that were allotted to individual Indians many years ago.

Effective January 1, 1994, up to $2,000 per year in payments derived from individual interests in Indian trust or restricted lands is excluded from income.

MAGI – exclude all income received from interest in Indian lands.

Verification: (not all inclusive)

- Statement from the source of payment

INDIVIDUAL DEVELOPMENT ACCOUNT (IDA)

1. Earned/Unearned

2. Excluded in Financial

3. Excluded in Patient Liability

3. Non-Taxable Intended to improve the economic independence and stability of individuals and families and to promote and support the transition to economic self-sufficiency. An IDA participant can only deposit earned income into an IDA. Federal funds match the amount of earnings low-income working individuals and families deposit into an IDA. IDA savings are to be used for a first home purchase, post-secondary educational expenses, or business capitalization.

The Social Security Act provides for State Family Assistance Grant funds (i.e., TANF, WtW) to be used to establish IDA. The Assets for Independence Act (AFIA) provides for IDAs to be established under Head Start, Low Income Home Energy Assistance (LIHEA), and Community Services.

Income in an IDA includes:

- Participant contribution (earned income); - Interest earned on participant earned income contributions; - Matching funds; and - Interest accrued on matching funds.

Note: Count the participant’s gross earned income MINUS the participant’s contribution amount. An individual, whose participation in the IDA program has terminated, voluntarily or otherwise, is no longer covered by the income exclusion.