15-01 Version of 16.2 Income Types Not Counted

16.2 Income Types Not Counted

Adoption Assistance
Agent Orange Settlement Fund
Combat Pay
Other Military Pay
Crime Victim Restitution Program
Disaster and Emergency Assistance
Earned Income (non-MAGI only)
Foster Care
IDA
Jury Duty Payments (non-MAGI only)
Kinship Care
Life Insurance policy dividends
Nutrition Benefits
Payments to Native Americans
Payments to Nazi Victims
Radiation Exposure Compensation Act (PL 101-426)
Refugee Cash Assistance (RCA)
Refugee "Reception and Placement"
Reimbursements
Relocation Payments
Repayments
Special Programs
Spinal Bifida Child
Susan Walker Payments
Student Financial Aids
Stipends from the UW Upward Bound Program
Tax Refunds (Income and EITC)
Unpredictable Income
Veterans Benefits
Wartime Relocation of Citizens
Workforce Investment Act Unearned Income
W2 Payments
General Relief and Charity
SSI/Supplemental Security Income
Interest and Dividend income (non-MAGI only)
Lump Sum Payments (non-MAGI only)
Property Settlements
Subsidized Guardianship
The American Recovery and Reinvestment Act (ARRA) of 2009
Child Support
Gifts
Money from Another Person
Worker's Compensation

The following types of income are not included in the countable income when determining eligibility for BadgerCare Plus.

Adoption Assistance
Agent Orange Settlement Fund Do not count payments received from the Agent Orange Settlement Fund or any other fund established in settling "In Re: Agent Orange product liability Settlement Fund litigation, M.D.L. No. 381 (E.D.N.Y. )". This is retroactive to January 1, 1989. Do not count these payments for as long as they are identified separately.
Combat Pay Do not count combat zone pay that goes to the household that is in excess of the military person's pre-deployment pay. The exclusion lasts while the military person is deployed to the combat area.

If the amount of military pay from the deployed absent family member is equal to or less than the amount the household was receiving prior to deployment, count all of the income to the household. Any portion of the military pay that exceeds the amount the household was receiving prior to deployment to a designated combat zone should not be counted when determining the household’s income.

Example 1: John's wife Bonnie and their daughter have an open BadgerCare Plus case. John is in the military stationed overseas, his monthly income is $1,000. John sends his wife $1,000 every month. When John is deployed to a combat zone his pay is increased to $1,300 a month, which is deposited into a joint account. Because the $300 is combat zone pay, it is not counted in the determination. The pre-combat pay of $1,000 is budgeted as unearned income for BadgerCare Plus.

Other Military Pay Do not count income received for the following purposes:

Living allowances
Basic Allowance for Housing (BAH)
Basic Allowance for Subsistence (BAS)
Housing and cost-of-living allowances abroad paid by the U.S. Government or by a foreign government
Overseas Housing Allowance (OHA)
Death allowances
Family allowances
Moving allowances
Travel allowances
Professional education allowances
ROTC educational and subsistence closure benefit allowances
Uniform allowances

Note: Military pay can be verified using the Leave and Earnings Statement (LES) received by active duty personel.

Crime Victim Restitution Program payments received from a state established fund to aid victims of a crime.

Disaster and Emergency Assistance payments made by federal, state, county, and local agencies, and other disaster assistance organizations.
Earned Income of individuals under 18 years of age.

For cases under non-MAGIApply to households whose eligibility is determined using BadgerCare Plus relationship rules (prior to March 31, 2014) to budget income for a household prior to transitioning to MAGI BadgerCare Plus budgeting rules. rules, disregard the income until the month following the month in which the person turns 18 years of age.

Foster Care
IDA (Individual Development Account) payments that are made in the form of matching funds to buy a home, start a business, or to complete post-secondary education.
Jury Duty Payments Count any portion of a jury payment that is over and above expenses as earned income for the month in which it is received.

For cases under non-MAGIApply to households whose eligibility is determined using BadgerCare Plus relationship rules (prior to March 31, 2014) to budget income for a household prior to transitioning to MAGI BadgerCare Plus budgeting rules. rules, count any portion of a jury payment that is over and above expenses as earned income for the month in which it is received.

For cases under MAGIModified Adjusted Gross Income. MAGI rules are used to determine BadgerCare Plus eligibility for new applicants beginning in 2014 and for existing members as of March 31, 2014, or their next regularly scheduled renewal, whichever is later. MAGI rules are based on tax relationships and family relationships, and they consider taxable income and whether children and tax dependents are required to file. rules, count all jury duty payments as earned income for the month in which it is received if the payments are not turned over to the individual’s employer. Amounts received separately as reimbursements or allowances for travel to and from the courthouse, meals, and lodging during jury duty are not countable.

Kinship Care
Life Insurance policy dividends.
Nutrition Benefits received from the following:
1. Emergency Food and Shelter National Board.
2. Federal Emergency Management Assistance (FEMA).
3. FoodShare allotment.
4. Home produce for household consumption.
5. National School Lunch Act.
6. Supplemental food assistance under the Child Nutrition Act of 1966.
7. Title VII Nutrition Program for the Elderly, Older Americans Act of 1965.
8. USDA Child Care Food Program.
9. USDA donated food and other emergency food.
10. WIC - the supplemental food program for women, infants, and children.
Payments to Native Americans from:

Distributions from Alaska Native Corporations and Settlement Trusts, including:

1. - Menominee Indian Bond interest payments.
  - All judgment payments to tribes through the Indian Claims Commission or Court of Claims.
  - Payments under the Alaskan Native Claims Settlement Act.
  - Payments under the Maine Indian Claims Settlement Fund.
  - Payments under PL 93-124 to the Sisseton-Wahpeton Sioux Tribe, except under non-MAGIApply to households whose eligibility is determined using BadgerCare Plus relationship rules (prior to March 31, 2014) to budget income for a household prior to transitioning to MAGI BadgerCare Plus budgeting rules.rules, individual shares over $2,000.
  - Payments under PL 93-134 to the Maricopa Ak-Chin Indian Community, Navajo Tribe, Coast Indian Community of the Resighini Rancheria, Stillaguamish Tribe, Pueblo of Taos Tribe, Walker River Paiute Tribe, and White Earth Band of the Minnesota Chippewa Tribe, except under non-MAGI rules, individual shares over $2,000.
  - Payments under PL 94-114 to the Bad River Band and Lac Courte Oreilles Band of Chippewa Indians and the Stockbridge Munsee Indian Community of Mohicans.
  - Payments under PL 96-318 to the Delaware Tribe of Kansas and of Idaho.
  - Payments under PL 96-420 to the Houlton Band of Muliseet Indians, the Passamoquoddy, and Penobscot.
  - For EBD Medicaid cases, under PL 98-64, disregard all Indian judgment funds held in trust by the Secretary of the Interior for an Indian tribe and distributed on an individual basis to members of the tribe. Also disregard interest and investment income from these funds.
  - Payments under PL 99-346, Saginaw Chippewa Indian Tribe of Michigan.
  - Payments under PL 99-377 to the Mille Lacs, Leech Lake, and White Earth, MN, reservations.
  - Payments under PL 101-41, Puyallup Tribe of Indians Settlement Act of 1989.
  - Payments under the Distribution of Judgment Funds Act of 1987 to the Cow Creek Band, Umpqua Tribe.
  - Payments under the Distribution of Indian Judgment to the Crow Creek and Lower Brule Sioux except individual shares over $2,000.

1. - Payments under the settlement of the Cobell v. Salazar class-action trust case.

1. Other Exempt Tribal Payments
  
  Disregard non-gaming tribal income from the following sources:

- Distributions and payments from rents, leases, rights of way, royalties, usage rights, or natural resource extraction and harvest from -
- - Rights of ownership or possession in any lands held in trust, subject to Federal restrictions, located within the most recent boundaries of a prior Federal reservation, or otherwise under the supervision of the Secretary of the Interior; or
  - Federally protected rights regarding off-reservation hunting, fishing, gathering, or usage of natural resources;

1. - Distributions resulting from real property ownership interests related to natural resources and improvements –
  - - Located on or near a reservation or within the most recent boundaries of a prior Federal reservation; or
    - Resulting from the exercise of federally-protected rights relating to such real property ownership interests;

1. Payments to tribal members from gaming revenue:
  - Under non-MAGIApply to households whose eligibility is determined using BadgerCare Plus relationship rules (prior to March 31, 2014) to budget income for a household prior to transitioning to MAGI BadgerCare Plus budgeting rules. rules, disregard the first $500 of the monthly income from Tribal Per Capita payments from gaming revenue. If the payments are received less than monthly, prorate the gross payment amount over the months it is intended to cover and disregard $500 from the monthly amount.
  - Under MAGIModified Adjusted Gross Income. MAGI rules are used to determine BadgerCare Plus eligibility for new applicants beginning in 2014 and for existing members as of March 31, 2014, or their next regularly scheduled renewal, whichever is later. MAGI rules are based on tax relationships and family relationships, and they consider taxable income and whether children and tax dependents are required to file. rules, all of the income form Tribal Per Capita payments from gaming revenue are counted income.

Payments to Nazi Victims made under PL 103-286 to victims of Nazi persecution.
Radiation Exposure Compensation Act (PL 101-426) payments to persons to compensate injury or death due to exposure to radiation from nuclear testing ($50,000) and uranium mining ($100,000). The federal Department of Justice reviews the claims and makes the payments. If the affected person is dead, payments are made to his or her surviving spouse, children, parents, or grandparents. This is retroactive to October 15, 1990. Do not count these payments for as long as they are identified separately.
Refugee Cash Assistance (RCA) program payments. RCA is administered by Wisconsin Works agencies and is made available for refugees who do not qualify for Wisconsin Works.
Refugee "Reception and Placement" (R&P) payments made to refugees during the first 30 days after their arrival in the U.S. R& P payments are made by voluntary resettlement agencies and may be a direct payment to the refugee individual/family or to a vendor.
Reimbursements for out of pocket expenses which an assistance group member has incurred and/or paid. However, reimbursements for normal household living expenses (rent, clothing, or food eaten at home) are counted.

Examples of reimbursements that are not counted:

1. For job or training related expenses. The expenses may be for travel, food, uniforms, and transportation to and from the job or training site. This includes travel expenses of migrant workers.
2. For volunteers' out-of-pocket expenses incurred during their work.
3. Medical or dependent care reimbursements.
4. Reimbursement from the Indianhead Community Action Agency (Ladysmith) under its JUMP Start Program for start-up costs to set up an in-home child care business in the person's home.

1. Reimbursements received from the Social Services Block Grant Program for expenses in purchasing Social Services Block Grant services, for example, transportation, chore services, and child care services.

The reimbursement payment should not be more than the person’s actual out-of-pocket expenses. If it is more, count the excess amount as unearned income.

Relocation Payments Under s. 32.19, Wis. Stats., relocation payments are available to displaced persons. The following are examples of costs which the relocation payments are intended to cover: moving expenses, replacement housing and property transfer expenses. Do not count the amounts paid by any governmental agency or organization listed in s. 32.02, Wis. Stats. Do not count Title II, Uniform Relocation Assistance and Real Property Acquisition Policies Act payments. Its purpose is to treat persons displaced by federal and federally aided programs fairly so that they do not suffer disproportionate injuries as a result of programs designed for the public's benefit.

Do not count Experimental Housing Allowance Program (EHAP) payments. Its purpose is to study housing supply. Test areas, which include Brown County, were selected throughout the United States, and contracts were entered into prior to January 1, 1975. A sample of families was selected to receive monthly housing allowance payments.

Repayments of money the member has received from an economic support program and must give back because of a program error or violation. Since he or she is not entitled to the money, he or she must repay it; therefore it should not be counted as income to the member.

Do not count the following repayments:

1. Money withheld from an economic assistance check due to a prior overpayment.
2. Money from a particular income source that is voluntarily or involuntarily paid to repay a prior overpayment received from that same source of income.

If money from a particular income source is mixed with money from other types of income, disregard only an amount up to the amount of the current payment from the particular source.

Example: Richard receives $50 a month from the Veteran’s Administration (VA) and $250 from Social Security. The income from the two sources is mixed together in one lump of $300. If the VA overpays Richard by $200, he can pay back to the VA only the $50 a month he receives from the VA. If he repays more, for instance, $75 a month, disregard only $50.

1. Social Security income used to repay an overpayment previously received from the Social Security Administration, whether SSA or SSI.

Special Programs income received from any of the following:
1. Active Corp. of Executives (ACE).
2. Wages paid by the Census Bureau for temporary employment related to Census 2010.
3. Emergency Fuel Assistance.
4. Foster Grandparents Program.
5. Governmental rent or housing subsidy, including reimbursements due to federal regulatory changes in computing HUD housing rent.
6. Homestead Tax Credit.
7. Low Income Energy Assistance Program.
8. Programs funded under Title V of the Older Americans Act of 1965 (16.3.1 #6), except wages or salaries, which are counted as earned income.
9. Retired Senior Volunteer Program (RSVP).
10. Service Corp. of Retired Executives (SCORE).
11. University Year for Action Program (UYA).
12. Under non-MAGIApply to households whose eligibility is determined using BadgerCare Plus relationship rules (prior to March 31, 2014) to budget income for a household prior to transitioning to MAGI BadgerCare Plus budgeting rules. rules, income from Volunteers in Service to America (VISTA) is not counted. Under MAGIModified Adjusted Gross Income. MAGI rules are used to determine BadgerCare Plus eligibility for new applicants beginning in 2014 and for existing members as of March 31, 2014, or their next regularly scheduled renewal, whichever is later. MAGI rules are based on tax relationships and family relationships, and they consider taxable income and whether children and tax dependents are required to file. rules, earnings and cash benefits from VISTA are counted.
13. Wisconsin's Family Support Program (s. 46.985, WI Stats.) This program funds the unique needs of severely disabled children. They may be a vendor or a money payment.
Spinal Bifida Child (PL 104-204) payments to any child of a Vietnam veteran for any disability resulting from the child's spinal bifida.
Susan Walker Payments received from the class action settlement of Susan Walker vs. Bayer Corporation. These payments are to hemophiliacs who contracted the HIV virus from contaminated blood products.
Student Financial Aids

Under non-MAGI rules, student financial aids are not counted as income regardless of source. This includes student loans, grants, scholarships and work study, and any financial assistance provided by a public or private organization for the purpose of obtaining an education. Disregard the full amount of student financial aids, including any amounts earmarked for living expenses. Count income from an internship or assistantship that is not part of work study or another student aid as earned income. Count Income from an internship or assistantship that is not part of work study or another student aid, counts the income from the internship or assistantship as earned income.

Example 2: Clark is a journalism student. The University School of Journalism has arranged an internship for him to work 10 hours a week at The Daily Planet. The newspaper pays him $30 a week. This income is counted as earned income when determining Clark's eligibility.

Under MAGI rules, 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 pro-rated over the period of time they are intended to cover. Student loans are not counted as income irrespective of what the loan is used to pay for.

Example 3: Mary was awarded a scholarship for $3,500 in July that is intended to cover her fall semester (September through December). Her tuition and course related expenses are $3,250 for the semester. The $250 that exceeds the amount of tuition and course-related expenses will be pro-rated over the four month period from September through December at $62.50 in unearned income each month ($250/4 months = $62.50/month).

Types of grants, scholarships and fellowships counted as income include:

Pell Grants,
Robert Byrd Honors scholarships,
Any grants, scholarships or fellowships received from the college or university as part of a financial aid package,
Any grants, scholarships or fellowships provided by public or private organizations.

The following educational aid types are not counted as income:

Loans, including Stafford Loans and Perkins Loans,
AmeriCorps or HealthCorps grant,
Bureau of Indian Affairs grant,
GI Bill / Veterans benefits,
ROTC benefits.

Note: These income types will not be considered when determining if grants, scholarships and fellowships exceed the cost of tuition, books and mandatory feeds.

The following expense types will be used to offset income from grants, scholarships, fellowships and other financial aid:

Tuition,
Required books, supplies or equipment,
Mandatory fees

The following expense types will not be allowed to offset income from grants, scholarships or other financial aid:

Room,
Board (meals or meal plans),
Personal expenses,
Transportation and parking,
Loan fees,
Health insurance costs.

Stipends from the UW Upward Bound Program paid to high school students to encourage low income students to further their education.

Tax Refunds (Income and EITC)
Unpredictable Income which is unpredictable, irregular, and has no appreciable effect on ongoing need.
Veterans Benefits

Under non-MAGIApply to households whose eligibility is determined using BadgerCare Plus relationship rules (prior to March 31, 2014) to budget income for a household prior to transitioning to MAGI BadgerCare Plus budgeting rules. rules, count veterans benefits as unearned income. Do not count VA allowances for unusual medical expenses that are received by a veteran, their surviving spouse, or dependent. Do not count aid and attendance and housebound allowances received by veterans, spouses of disabled veterans and surviving spouses. For institutionalized and community waiver cases, do not count these allowances in eligibility and post-eligibility determinations, except for residents of the State Veterans Home at King.

Under MAGIModified Adjusted Gross Income. MAGI rules are used to determine BadgerCare Plus eligibility for new applicants beginning in 2014 and for existing members as of March 31, 2014, or their next regularly scheduled renewal, whichever is later. MAGI rules are based on tax relationships and family relationships, and they consider taxable income and whether children and tax dependents are required to file. rules, do not count any veterans' benefits paid under any law, regulation, or administrative practice administered by the Department of Veterans Affairs (VA). The following amounts paid to veterans or their families are not countable.
- Education, training, and subsistence allowances. (i.e., GI Bill benefits)
- Disability compensation and pension payments for disabilities paid either to veterans or their families.
- Grants for homes designed for wheelchair living.
- Grants for motor vehicles for veterans who lost their sight or the use of their limbs.
- Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death.
- Interest on insurance dividends left on deposit with the VA.
- Benefits under a dependent care assistance program.
- The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001.
- Payments made under the compensated work therapy program.
- Any bonus payment by a state or political subdivision because of service in a combat zone.

Do not count VA allowances for unusual medical expenses that are received by a veteran, their surviving spouse, or dependent. Do not count aid and attendance and housebound allowances received by veterans, spouses of disabled veterans and surviving spouses. For institutionalized and community waiver cases, do not count these allowances in eligibility and post-eligibility determinations, except for residents of the State Veterans Home at King.

Wartime Relocation of Citizens (PL 100-383) restitution payments made to individual Japanese-Americans (or their survivors) and Aleuts who were interned or relocated during WW II.
Workforce Investment Act Unearned Income (WIA) paid to any adult or minor participating in WIA, including:
1. "Need-based payments" paid to persons as allowances to enable them to participate in a training program.
2. "Compensation in lieu of wages" paid to persons in "tryout employment". This is arranged when private-for-profit opportunities aren't available and is generally limited to persons under age 22. Ask any applicantA request for BadgerCare Plus coverage. The request must be on the Department's or Federally-facilitated Marketplace’s application, registration form or account transfer (from Federally-facilitated Marketplace) and must contain name, address, and a valid signature. The applicant must submit a signed and completed application form to complete the application process. under age 23, or the local WIA staff if he or she is participating in "tryout employment". If he or she is, count this as unearned income.
3. "Payments for supportive services" paid to persons in training programs who aren't able to pay for training related expenses (e.g., transportation, health care, child care, meals).

W2 Payments for W-2 Transition (W-2 T), Custodial Parent of an Infant (CMC), At Risk Pregnancy (ARP), and Community Service Jobs (CSJ). Do not disregard payments for Trial Employment Match Program or Transform Milwaukee Jobs.
General Relief and Charity
SSI/Supplemental Security Income (SSI)

SSI is not counted income for BadgerCare Plus. The following is a brief list of the potential codes for SSI.

SI - SSI/Supplemental Security Income

SISE - SSI-E/Supplemental Security Income - Expenditure

SISS - State Supplemental Security Income

Interest and Dividend Income

Lump Sums Payments

Under non-MAGIApply to households whose eligibility is determined using BadgerCare Plus relationship rules (prior to March 31, 2014) to budget income for a household prior to transitioning to MAGI BadgerCare Plus budgeting rules. rules, lump sum payments (rather than recurring payments) from such sources as insurance policies, inheritance, sale of property, Railroad Retirement, Unemployment Compensation benefits, retroactive corrective financial aid payments, etc. are counted as an asset when received. There is no asset test for BadgerCare Plus (20.1). The payment can be either unearned or earned income. However, do not include payments that are included in farm or self-employment income.

Property Settlement

Money received as a property settlement is always an asset, regardless of whether it is paid in one payment or installments. It is never income.

Subsidized Guardianship Payments

Subsidized guardianship payments are not counted for BadgerCare Plus.

The American Recovery and Reinvestment Act (ARRA) of 2009

Disregard the one time payments of $250 sent to SSI, Veterans, Railroad Retirement, and Social Security recipients as a result of The American Recovery and Reinvestment Act of 2009.

Effective 02/01/2009,disregard the $25 per week, temporary supplement benefits from Unemployment Compensation (UC).

Child Support

Under MAGIModified Adjusted Gross Income. MAGI rules are used to determine BadgerCare Plus eligibility for new applicants beginning in 2014 and for existing members as of March 31, 2014, or their next regularly scheduled renewal, whichever is later. MAGI rules are based on tax relationships and family relationships, and they consider taxable income and whether children and tax dependents are required to file. rules, do not count child support income. If a household is receiving family support, divide the payment by the number of members in the household. The amount of the payment allocated to the child(ren) is considered child support and is disregarded. Count the amount of the payment allocated to the adult(s) as alimony/spousal support unless the divorce/separation order by the court designates the spousal support payments as being non-taxable. If the spousal support payments are non-taxable, they are exempt under MAGI rules. See Process Help 62.2.6.

Example 4: Morgan receives $500.00/month in family support for herself and her three children, Kyra (age 15), Kevin (age 9), and Katie (age 7). $500/4 people = $125/person. Disregard the amount allocated to the children ($125 x 3 children = $375). Count $125/month as income for Morgan.

Gifts

A gift is something a person receives which is not repayment for goods or services the person provided and is not given because of a legal obligation on the giver’s part. To be a gift, something must be given irrevocably (that is, the donor relinquishes all control).

Under non-MAGIApply to households whose eligibility is determined using BadgerCare Plus relationship rules (prior to March 31, 2014) to budget income for a household prior to transitioning to MAGI BadgerCare Plus budgeting rules. rules, count Monetary gifts over $30 a calendar quarter. A Calendar quarter is three consecutive months beginning with January, April, July or October.

Under MAGIModified Adjusted Gross Income. MAGI rules are used to determine BadgerCare Plus eligibility for new applicants beginning in 2014 and for existing members as of March 31, 2014, or their next regularly scheduled renewal, whichever is later. MAGI rules are based on tax relationships and family relationships, and they consider taxable income and whether children and tax dependents are required to file. rules, do not count the value of property received as a gift as income. Count a gift as income in the month received if it meets either of the following criteria:

Income from a bequest, devise or inheritance
Income generated from property given to a trust if the income is paid, credited or distributed to the individual

Example 5: Keisha is the beneficiary of a trust. Land was given to the trust, and it generates interest that is distributed to Keisha as the beneficiary. Count this interest as unearned income.

Money from Another Person is money a person receives which is not repayment for goods or services the person provided and is not given because of a legal obligation on the giver’s part. This is not a loan.

Income from a bequest, devise or inheritance
Income generated from property given to a trust if the income is paid, credited or distributed to the individual

Example 6: Mimi receives $500 each month from her parents. She is not expected to pay back this money. Mimi’s BadgerCare Plus eligibility is determined using MAGI rules. The $500 is not counted as income for BadgerCare Plus eligibility.

Note: if the money is received from another person in exchange for goods or services (such as an informal arrangement in which someone rents a room in his or her house), and if the payment is regular and predictable, it should be counted under both MAGI and non-MAGI rules. See Chapter 16.4.3.1 for information on counting rental income.

Example 7: Jeremy pays Micah $300 each month to live in a room in Micah’s house. Micah and Jeremy do not have a formal lease agreement, but the payment is regular and predictable. Count the $300/month as income for BadgerCare Plus eligibility.

Worker's Compensation

Under non-MAGI rules, count Worker’s Compensation benefits as unearned income.

Under MAGI rules, do not count Worker’s Compensation benefits. This includes Worker’s Compensation benefits received as a settlement.

This page last updated in Release Number: 15-01

Release Date: 05/15/2015

Effective Date: 05/15/2015