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INCOME TYPE DESCRIPTION

Division of Welfare and Supportive Services E-30033 Medical Assistance Manual TYPES OF EARNED AND UNEARNED INCOME 17 Jul 01 MTL 04/17 RETIRED SENIOR VOLUNTEER (RSVP)

1. Unearned

2. Excluded in Financial

3. Excluded in Patient Liability

4. Non-Taxable Stipends received for services rendered.

Verification: (not all inclusive)

- Copy of check - Documents from source of payment

RETIREMENT PAY

1. Unearned

2. Counted in Financial

3. Counted in Patient Liability

4. Taxable Benefits paid to a retiree by the company they worked for:

Verification: (not all inclusive)

- Copy of check - Documents from source of payment

RETIREMENT, SURVIVORS, DISABILITY INSURANCE (RSDI)

1. Unearned

2. Counted in Financial

3. Counted in Patient Liability

4. Taxable (Conditional) Persons who may be eligible must apply at the local Social Security office. Budget the gross amount. Cost-of-living increases usually occur effective December, reflected on January checks.

MAGI: A Child or Tax Dependent’s RSDI income is excluded from MAGI budgeting unless their income meets certain qualifications or if they are the Primary Tax Filer. To determine if the Child or Tax dependent’s RSDI is countable proceed with the following test as listed on IRS Publication 915 Worksheet A (see appendix H).

Only the income of the individual child/tax dependent is used for this test.

MAGI RSDI Taxability Test: 1- Annualize the individual child or tax dependent’s gross RSDI income (pro-rate if received less than a full year). 2- Divide your annualized RSDI by 50% to determine the adjusted total. 3- Annualize any gross earnings, wages, etc. for the child/tax dependent and add to your adjusted total to get your adjusted income.