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2/17 DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI INCOME EXCLUSIONS CHAPTER H, PAGE 1 Non-SSI Income Exclusions – Introduction An income exclusion is an amount of income which does not count in determining eligibility and the AG payment amount. Exclusions are deducted from gross income to determine the amount of countable income that is to be used in determining the individual’s AG payment. There are two types of exclusions; exclusions that apply only to specific types of income and general exclusions that can be applied to any source of income. Exclusions that are specific to a type of income are addressed in Chapter I – Income Sources within the section that addresses that type of income. The general exclusions are addressed in this chapter. Sections 1 and 2 of this chapter address general information and sections 3 through 13 address the general income exclusions. The $20 General Income Exclusion and the $65 and ½ Earned Income Exclusion are listed first and the others follow in alphabetical order. Note: This chapter DOES NOT apply when evaluating an SSI recipient’s income eligibility or payment. See Chapter D. 1. Exclusion Facts Income eligibility and the AG payment amount are determined monthly. Therefore, all income exclusions are applied to the monthly income.  The application of exclusions never reduces income below zero.  Except for the $20 general exclusion, any unused earned income exclusion is never applied to unearned income.  Any unused portion of a monthly exclusion cannot be carried over for use in subsequent months. 2. Application of Exclusions There are nine general income exclusions. Some apply only to unearned income, others apply to earned income, and others apply to the total of the two income types. Guidelines specify which ones apply to which and in what order they must be applied. The basic procedure is  Determine countable unearned income and deduct the unearned income disregards.  Determine countable earned income and deduct the earned income disregards.