5160-11 TYPES OF INCOME
While there are many sources of income, all income is separated into two types for Family Medicaid purposes: earned and unearned.
Earned Income means money received, in cash or in-kind, from wages, salary or commissions in exchange for the performance of services by the employee. Earned income includes payments made at one time for services performed over a long period of time.
Self-employment earned income means money received, in cash or in-kind for producing or selling goods or services, after all allowable expenses are subtracted from the income. See Section 5164 for policy on determining self-employment income.
Unearned Income means: All income that is not considered earned income. It includes:
Retirement benefits, Social Security benefits, and Veteran's pensions;
Dividends and interest;
Unemployment compensation;
Strike benefits;
Direct child support;
Royalties;
Contest or lottery prizes and Bingo winnings;
Payments from any type of cash assistance program;
Deposits into joint accounts owned by a Family Medicaid applicant or recipient adult or child and any person outside the household;
Cash gifts by someone who is not in the household; and
Net amounts deemed to the household from excluded stepparents, alien sponsors, and parents of minor parents.
5160-11 C. Determining If Income Is Earned Or Unearned
It is important to determine if income is earned or unearned, because certain deductions are made from earned income that is not allowed for unearned income.
When an individual reports income of a type that is not clearly earned or unearned, the caseworker must examine the degree of personal effort the individual must make to generate the income. If no direct personal effort or activity is required, the income is unearned.
5160-11 D. Separating Income From Resources
In some limited circumstances, money received in a calendar month is considered to be a resource, not income. These circumstances are discussed in sections 5156-2 - Lump Sum Payments, 5156-3 -Conversion or Sale of a Resource, and Section 5161-19 - Non-Recurring Lump Sum Payments.
Unless specified as a resource in those sections, any monies received in a calendar month are considered to be income in the month of receipt. If any of that same money remains available to the client in the next month, it is considered to be a resource.
Unless specified as a resource in those sections, any monies received in a calendar month are considered to be income in the month of receipt. If any of that same money remains available to the client in the next month, it is considered to be a resource.
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