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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 7 i. Royalties/Honoraria Countable. Royalty income includes any payments an individual receives from a patent, copyright or any other natural resource owned by the individual. Royalties are countable unearned income when the individual receives payment based on the use of a natural resource for which he owns the usage rights, or when the individual is not self-employed. d. Farming/Fishing Farming or fishing income may be considered self-employment income but should only be counted once. i. Farming Income Farming income is countable. Farming income is income received when an individual is in the business of farming if she cultivates, operates or manages a farm for profit, either as owner or tenant. A farm can include livestock, dairy, poultry, fish or fruit. It can also include plantations, ranches, ranges and orchards. ii. Fishing Income Fishing income is countable. Fishing income includes amounts an individual receives from catching, taking, harvesting, cultivating or farming fish, shellfish, crustacean, sponges, seaweeds or other aquatic forms of animal or vegetable life, as well as money from patronage dividends and fuel tax credits and refunds. iii. Counting Farming or Fishing Income 1. Income Received on a Regular Basis

If an individual has a federal tax return available to verify the earnings from last year and the business model remains the same, prorate the reported annual profit over 12 months. Count the result as earned income, taking into account any changes for the prorated period. If the individual does not have a federal tax return available from the previous year, determine the monthly income received and any expenses the individual has paid or expects to pay in that month.