Page 161

15.3.33 Reserved 15.3.34 Federal Income Tax Refunds and Credits Federal income tax refunds (including refundable tax credits) and advance payments of any tax credits, including the Earned Income Tax Credit and the Child Tax Credit, are totally disregarded as income. 15.3.35 Temporary COLA Disregard for Social Security Recipients The annual Cost of Living Adjustment (COLA) increase to Social Security benefits is disregarded in certain months for the following programs and categories, which have income limits that are tied to the Federal Poverty Level (FPL): • Medically Needy SSI-Related Medicaid (including deductibles) • Medicaid Purchase Plan (including premiums) • Medicare Savings Programs The disregard begins the month of the COLA increase (usually January) and ends when the new FPL amounts are in effect (usually February 1 for new applications and March 1 for ongoing cases). Example 11 In December, Ed’s Social Security payment was $875 per month. It increased to $900 in January. The current COLA disregard amount is calculated by subtracting Ed’s previous Social Security payment amount from his current payment amount. Ed’s current COLA disregard amount is $25, which is disregarded from January 1 until February 28. The disregard ends when the new FPL amounts go into effect on March 1. 15.3.36 Guaranteed Income Payments A guaranteed income payment is excluded for all categories of Medicaid if both of the following apply: • The payment itself is privately funded. • The payment is administered by a non-profit organization. Guaranteed income payments that are excluded include, but are not limited to, payments from the Madison Forward Fund, the Madison Forward Fund 2.0, and The Bridge Project in Milwaukee. See SECTION 16.7.34 GUARANTEED INCOME PAYMENTS for information about asset treatment of guaranteed income payments. 15.3.37 Assistance Based on Need (General Assistance) Income is disregarded as Assistance Based on Need, also known as General Assistance, if it is: • Provided under a program which uses income as a factor of eligibility, and • Funded wholly by a state (including tribes), a political subdivision of a state, or combination of such jurisdictions. This page last updated in Release Number: 26-01 Release Date: 02/13/2026 Effective Date: 09/01/2024