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• The BadgerCare Plus member. • The spouse of the BadgerCare Plus member. • A person, including a court or administrative body, with legal authority to act in place of or on behalf of the member or the member’s spouse. This includes a power of attorney or guardian. • A person, including a court or an administrative body, acting at the direction or upon the request of the member or the member’s spouse. This includes relatives, friends, volunteers, or authorized representatives. All regular payments, including dividends and interest, made under the terms of the trust from a trust to the beneficiary are unearned income to the beneficiary. Dividends and interest income are counted even if they are tax exempt. 13. Gambling Winnings Count gambling winnings that are regular and predictable as income. Gambling losses cannot be used to offset other types of income. 14. Royalties See SECTION 16.4.3 SELF-EMPLOYMENT INCOME. 15. Capital and Ordinary Gains and Losses Capital gains are profits from the sale of assets, such as stocks and bonds, real estate, collectibles, or personal items. If personal capital gains are regular and predictable, count as unearned income. Do not count personal capital gains as unearned income if they are not regular or predictable. Personal capital losses can be used to offset the person’s other income types. In situations where a person is planning to file a joint tax return with their spouse, personal capital losses may offset the spouse’s income. Note If a person is in the business of buying and reselling items, it should be reported as self-employment.

Example 3 Danielle is moving to a different city in Wisconsin. She sold her house and made a profit. This house was her primary residence, and she did not sell it as part of a real estate business. The profit she made from the sale is taxed as capital gains. Since the sale of her house was a one-time event, and the capital gains from the sale are not regular and predictable, these capital gains are not counted as unearned income. 16. Student Financial Aids Work study income and any income from an internship or assistantship should be counted as earned income. Grants, scholarships, fellowships, and any additional financial assistance provided by public or private organizations that exceed the cost of tuition, books, and mandatory fees are counted as unearned income and should be prorated over the period of time they are intended to cover. Types of grants, scholarships, and fellowships counted as income include the following: • Pell Grants • Robert Byrd Honors scholarships • Any grants, scholarships, or fellowships received from the college or university as part of a financial aid package