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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 6
Countable Unearned Income
Income Type Treatment Alimony Countable. Payments an individual receives from a spouse he no longer lives with, or a former spouse, if paid as part of a divorce agreement, separation agreement or court order. Annuities Annuities are contracts or agreements that, in exchange for a lump sum payment or series of payments, provide income at regular intervals (i.e., monthly, quarterly, annually). Annuities establish a source of income for a future period, and are often used in retirement planning.
Annuity payments count as unearned income the month received when the annuity is an excluded resource. See the Countable and Excluded Resources for Medically Needy policy. Canceled Debts The amount of a debt an individual is no longer required to pay or that is forgiven. Capital Gains Countable. Income an individual receives when a capital asset is sold and there is a profit from the sale. Count in the month received or when available for use. Cash Inheritance The value of inherited cash is counted as income in the month of receipt. Cash Support Regular cash contributions made directly to the individual are unearned income, unless excluded as irregular or infrequent income. Child Support Child support payments are countable unearned income to the child(ren) the payments are intended to support. If the support order does not indicate the amount per child, assume the amount received is equally distributed among all of the noncustodial parent’s children for whom the payment is made.
Child support received is subject to a $50 disregard. Child Support Arrearage Child support arrearages received on behalf of the applicant, whether received on a regular monthly schedule or as a one-time payment, are countable. Community Spouse Income Maintenance Amount (CSIMA)/ Dependent Income Maintenance Amount (DIMA) The CSIMA and/or DIMA is countable unearned income only when the institutionalized individual is not living in the same household as the community spouse or dependent. Death Benefits Unearned income when the total amount exceeds the expense of deceased person’s last illness and burial costs.