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Aged, Blind and Disabled Manual Section: Financial Eligibility Requirements Policy Manual Number: 110.030 Chapter: ABD Unearned Income

March 18, 2019 Division of TennCare 6 kind prize or cash, the cash offered is counted as unearned income even if the individual chooses the in-kind item and regardless of the value of the in-kind item.

An award is received as the result of a decision by a court, board of arbitration, etc. Secure from the applicant any of the following types of verification:

• Award letter; • Copy of the check received; • Contest advertisement; or • Income tax return for the year the prize or award was claimed.

Gifts Countable.

A gift is received by a household member without the giver’s legal obligation or as repayment for goods or services. The value of a gift, either cash or in-kind, is counted as unearned income in the month of receipt. The cash gifts value is counted in whole the month of receipt, unless it can be excluded as infrequent or irregular income.

The value of in-kind gifts is equal to the item’s current market value. A gift of a house which is used as shelter is not counted as income and is exempted as a homestead. A gift of a house which is not used as shelter is not counted as income and is valued as a resource at its current market value.

Gifts of commercial travel tickets for domestic travel are excluded from income if they are not converted to cash.

Use any of the following methods to verify the type, amount and date of receipt of a gift:

• Photocopy of the check; • A written or verbal statement from the donor regarding the gift’s value and date given; or • In the absence of the first two verification types listed, the individual’s sworn statement.

In-Kind Support and Maintenance (ISM) Unearned in-kind income, in the form of food and/or shelter, is referred to as ISM and is countable income in the month