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Families and Children Manual Policy Manual Number: 010.020 Section: Financial Eligibility Chapter: Countable and Excluded Income

September 1, 2026 Division of Tenncare 10 k. Capital Gains Countable. A capital gain is income an individual receives when a capital asset is sold, and the individual makes a profit. Capital assets include a home, household furnishings, and stocks and bonds held in a personal account. When a capital asset is sold, the difference between the amount paid for the asset and the amount it is sold for is a capital gain or capital loss.

l. Alimony Alimony received is money paid to an individual from a spouse that the individual no longer lives with, or a former spouse, if part of a divorce agreement, separation agreement or court order. Alimony is countable income if the separation, divorce agreement, or court order was finalized on or before December 31, 2018. Alimony received as the result of separation, divorce agreement, or court order that was finalized on or after January 1, 2019 is excluded. Payments designated in the agreement or ordered as child support or as a non-taxable property settlement are not alimony.

m. Interest Income Countable. Dividends and interest are returns on capital investments such as stocks, bonds, and savings accounts, including accrued interest on loans made by the individual. Count income received on a monthly basis in the month the individual receives it, or the month it is available for his use. Convert interest payments received on other than a monthly basis to a monthly amount by prorating the payment over the accrued period. Types of Interest Income: i. Stocks and Bonds: Income that an individual receives from stocks, bonds or mutual funds that he owns are countable. ii. Certificate of Deposit: The accrued interest, based on the individual’s percentage of ownership, when the certificate of deposit has reached maturity is countable. iii. Checking Account: The interest an individual receives on their checking account, based on percentage of ownership, is countable. iv. Life Insurance: Interest income received as a result of life insurance proceeds is taxable income and countable for the purpose of determining eligibility. v. Retirement Account: Interest income received on a traditional IRA is countable when received. vi. Savings Account: The interest an individual receives based on the individual’s percent of ownership of a savings account is countable. vii. Contract for Deed: Income paid to an individual from the repayment of property debt is countable. viii. Promissory Note: A promissory note is a promise in writing to pay an individual at a future date. Interest income an individual receives from a promissory note is countable.