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Aged, Blind and Disabled Manual Section: Financial Eligibility Requirements

Policy Manual Number: 110.025 Chapter: ABD Earned Income

November 01, 2021 Division of TennCare 7 gross income and allow the same deductions that are allowed by the IRS.

Severance Pay Countable.

Severance pay is countable earned income in the month received.

Sheltered Workshop Countable.

Sheltered workshops provide employment opportunities for individuals with developmental, physical or mental impairment. Sheltered workshops prepare the individuals for gainful work and provide rehabilitation, work training, and life skills. Sheltered workshops are operated by certain nonprofit organizations, or by state or local government institutions.

Under some circumstances, income earned by enrollees in a nursing facility may be considered therapeutic. These individuals are recognized as having a greater need for personal income, because of the nature of their activities. Retention of additional income derived from work is considered essential for achieving a degree of independence.

See the Post-Eligibility Treatment of Income policy for impact to patient liability for individuals receiving Long-Term Services and Supports (LTSS).

Sick Pay/Disability Pay Countable.

Sick or disability pay is a payment made to or on behalf of an employee by an employer or private third party for sickness or accident disability. Sick or disability pay is counted as earned income when it is received within 6 calendar months after the individual has stopped work. Sick or disability pay received more than 6 months after stopping work is counted as unearned income.

Tips Countable.

Tips that total more than $20 in a calendar month from any one employer are countable.

See ABD Unearned Income policy for tips received totaling less than $20 in a calendar month.

Volunteers In Service To America (VISTA) Payments Excluded.

Volunteers in Service to America under Title I of the Domestic Volunteer Services Act of 1973 (VISTA) payments are excluded.