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INCOME TYPE DESCRIPTION

E-30034 Division of Welfare and Supportive Services TYPES OF EARNED AND UNEARNED INCOME Medical Assistance Manual

17 Jul 01 MTL 04/17

4- Annualize any taxable interest or dividends received by the child/tax dependent and add to your adjusted income to get a grand total. 5- Compare the grand total income to the IRS baseline of $25,000/single, or $32,000/married.

If the grand total is equal to or less than the baseline, none of the RSDI income for the child/tax dependent is countable for MAGI.

If the adjusted income is greater than the baseline, a second test must be completed using IRS Worksheet 1 (see appendix H).

Verification: (not all inclusive)

- Copy of award letter - Copy of disallowance letter - SSA Benefit Record - SOLQ - IRS Publication 915 – Worksheet A - IRS Worksheet 1

REVERSE MORTGAGES

1. Unearned

2. Excluded in Financial

3. Excluded in Patient Liability

4. Non-Taxable A reverse mortgage is a type of home equity loan, which allows a person to convert some of the equity in their home into cash while retaining home ownership.

Funds obtained from a reverse mortgage may be used for any purpose, including meeting housing expenses such as taxes, insurance, fuel, and maintenance costs.

The funds may be received in a lump sum, in monthly advances, through a line-of-credit or in a combination of distribution methods.

Depending on the agreement with the lender, the loan becomes due with interest when the individual moves, sells the home, dies, or reaches the end of the pre-selected loan term.

Verification: (not all inclusive)

- A copy of the reverse mortgage agreement with the lender - Documentation of the payments and source