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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 7
Farming/Fishing Farming or fishing income is countable when the individual does not materially participate in the production of income. Gross farm income is subject to deductions. Federal Emergency Management Agency (FEMA) Payment Non Disaster or Emergency FEMA payments made to a household when there is no major disaster or emergency declaration are countable in the month of receipt. Gambling, Prizes and Awards The value of a prize or award is unearned income in the month of receipt.
A prize is something won in a contest, lottery or game of chance. If the individual is offered a choice between an in-kind prize or cash, the cash offered is counted as unearned income even if the individual chooses the in-kind item and regardless of the value of the in-kind item.
An award is received as the result of a decision by a court, board of arbitration, etc. Secure from the applicant any of the following types of verification:
• Award letter; • Copy of the check received; • Contest advertisement; or • Income tax return for the year the prize or award was claimed. Gifts Cash gifts are counted in whole in the month of receipt, unless excluded as infrequent or irregular income. The value of in-kind gifts is equal to the gift’s CMV. Income Producing Resource Income earned off of an income-generating resource is counted or excluded based on the treatment of the resource. Income generating resources include:
• Annuities; • Contract for Deeds; and • Promissory Notes.
Income generated by a resource that is excluded is countable unearned income. Income generated by a resource that is countable is excluded as income. Interest Income Interest income and dividends are a return on a capital investment such as stocks, bonds, mutual funds or savings accounts. A cash gift or incentive payment to open an account is considered interest income.