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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 14 2. Promissory Notes; 3. Individual Retirement Account (IRA); 4. 401(k); and 5. Keogh Account.

viii. Jury Duty Jury duty pay is countable income. Any jury duty pay that is turned over to the individual’s employer may be excluded. Individuals must enter the amount of jury duty pay received. Reimbursements or allowances received separately from jury duty pay for travel to and from courthouse, or for meals and lodging, are excluded. ix. Sheltered Workshop 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 non-profit organizations, or by state or local government institutions. While training in a sheltered workshop, the income received is considered unearned and is excluded. If the individual continues to work in the sheltered workshop after training, income received is considered earned and is countable. x. Care and Contribution In Exchange for a Transferred Asset If an individual transferred an asset and part or all of the compensation he received included a provision for lifetime total care and support, the value of the care and support contribution is unearned income and is countable. 4. Excluded Income The income types below are excluded when determining income eligibility under the MAGI methodology for TennCare Medicaid and CoverKids. a. Achieving a Better Life Experience (ABLE) ABLE accounts or 529A accounts are tax-advantaged savings accounts for individuals with disabilities that are established under a qualified ABLE program. The funds within an ABLE account are intended to cover the individual’s Qualified Disability Expenses (QDEs) related to her blindness or disability. QDEs include, but are not limited to: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, funeral and burial expenses, and basic living expenses.