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2/17 DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI INCOME EXCLUSIONS CHAPTER H, PAGE 8 7. Expenses of Obtaining Unearned Income Applicable To Unearned Income An expense of obtaining unearned income is one that is an essential factor in obtaining a particular payment(s). 7.1. Exclusion Unearned income does not include that part of a payment which is for an essential expense incurred in getting the payment. The expenses are deducted from the specific income for which they were incurred. They cannot be used to reduce other countable income. Examples:  From a payment received for damages in connection with an accident, subtract legal, medical, and other expenses connected with the accident.  From a retroactive check from a benefit program other than AG, subtract legal fees connected with that claim. 7.2. Deducting Allowable Expenses Deduct any expenses which have been verified as essential from the first and any subsequent amount(s) of related income. Deduct even those verified expenses which the recipient has previously paid (e.g., a partial payment to an attorney made from the individual's savings account) as long as the expenses are essential. Note: The remainder is unearned income subject to the general rules pertaining to income and income exclusions. Examples Document Fees - A fee to acquire documentation to establish that an individual has a right to certain income (e.g., a fee for a birth certificate or medical examination) is an essential expense. Guardianship Fees - A guardianship fee is an essential expense only if the presence of a guardian is a requirement for receiving the income. Note: Guardianship fees are never an essential expense for obtaining Title II or Title XVI benefits because the appointment of a legal guardian is never an SSA requirement.