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Families and Children Manual Section: Financial Eligibility Policy Manual Number: 010.045 Chapter: Medically Needy Countable and Excluded Income

November 01, 2021 Division of TennCare 10

Excluded Unearned Income Income Type Treatment 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.

All contributions and earnings within a single ABLE account are excluded as income, except that contributions are not deducted from countable income of the individual making the contribution. Contributions made by an ABLE account owner from his own resources and contributions made by a third party, including a trust, are excluded as income.

Distributions from an ABLE account are not considered income, but are a conversion of one resource to another. See the Countable and Excluded Resources for Medically Needy Categories policy. Adoption Subsidies Excluded. Payments to an individual from state adoption assistance programs or Title IV-E funds for special needs children. Canceled Debts Excluded. The amount of a debt an individual is no longer required to pay or that is forgiven. Community Spouse Income Maintenance Amount (CSIMA)/ Dependent Income Maintenance Amount (DIMA) If an applicant receives a Community Spouse Income Maintenance Allowance or Dependent Income Maintenance Allowance, and the institutionalized individual is living in the applicant’s household, the CSIMA/DIMA is excluded. Education Income Not Work Study Exclude income received through Federal Student Aid, such as grants and loans, except for income received through Work Study programs. Includes: Pell Grant; SEOG Grant; National Direct Student Loan; Guaranteed Student Loan; State Student Initiative and any financial aid paid directly to the school and unavailable to the student. Federal Emergency Management Agency (FEMA) Payment Disaster or Emergency FEMA payments issued as a result of a presidentially declared emergency or major disaster are excluded. Payments made by comparable disaster assistance programs by states, local governments and disaster assistance organizations are also excluded.