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State of Wisconsin |
HISTORY |
The policy on this page is from a previous version of the handbook.
Stipends from the University of Wisconsin Upward Bound Program
The following types of income are not included in the countable income when determining eligibility for BadgerCare Plus.
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. |
Living allowances
Basic Allowance for Housing
Basic Allowance for Subsistence
Housing and cost-of-living allowances abroad paid by the U.S. government or by a foreign government
Overseas Housing Allowance
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 received by active duty personnel.
Income of people younger than 18 years old. See Section 2.8 Modified Adjusted Gross Income Income Counting Rules for information about counting income for people younger than 18 years old.
Payments to Native Americans from:
Distributions from Alaska Native Corporations and Settlement Trusts, including:
Payments under the settlement of the Cobell v. Salazar class-action trust case.
Distributions and payments from rents, leases, rights of way, royalties, usage rights, or natural resource extraction and harvest from:
Resulting from the exercise of federally-protected rights relating to such real property ownership interests
Payments to tribal members from gaming revenue: All of the income from 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 program payments. The Refugee Cash Assistance program is administered by W-2 agencies and is made available for refugees who do not qualify for W-2.
Refugee "Reception and Placement" payments made to refugees during the first 30 days after their arrival in the U.S. Reception and Placement 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 that 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:
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.
Do not count Experimental Housing Allowance Program 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.
Do not count the following repayments:
Money withheld from an economic assistance check due to a prior overpayment.
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 2: Richard receives $50 a month from the VA and $250 from Social Security. The income from the two sources is added together to equal $300. If the VA overpays Richard by $200, he can only pay back the $50 a month he receives from the VA. If he repays more, for instance, $75 a month, only $50 should be disregarded. |
| 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 prorated over the four-month period from September through December at $62.50 in unearned income each month ($250/4 months = $62.50/month). |
The following types of grants, scholarships, and fellowships are counted as income:
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
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.
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
Count lump sum payments (if the payment is otherwise a countable income type) in the month received. Lump sum payments are not counted outside of the month received.
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 are not counted for BadgerCare Plus.
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 Entering Child Support Income on an Unearned Income Page).
| Example 4: Morgan receives $500/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. |
A gift is something a person receives, 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).
Do not count the value of a gift as income. This includes funds received through crowdfunding accounts, such as GoFundMe and Kickstarter. Funds received through a crowdfunding account would be considered a gift. These funds are not taxable and are not counted.
| Example 5: Marco’s grandmother gave him $1,600 to help pay for his classes at a local technical college. Do not count this $1,600 as income. |
Money from another person is money a person receives that is not repayment for goods or services the person provided and is not given because of a legal obligation on the giver’s part. Money from another person is not a loan.
Do not count money from another person as income (see #41 for policies regarding money received from another person through an inheritance, bequest, or devise).
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Example 6: Mimi receives $500 each month from her parents. She is not expected to pay back this money. The $500 is not counted as income for BadgerCare Plus eligibility. |
Note: If money received from another person is 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. See Section 16.4.3.1 Income Sources 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. |
An inheritance is property received from someone who is deceased without a valid will. A bequest is personal property received from someone who is deceased, as directed by that decedent’s will. A devise is real property received from someone who is deceased, as directed by that decedent’s will.
Inheritances, bequests, and devises are generally not taxable, and, as a result, the value of the inheritance, bequest, or devise is generally not counted as income.
However, there are a few forms of inheritances or bequests that may be taxable. For example, distributions from an inherited pension are usually taxable to the beneficiary if the distributions would have been taxable if the deceased were still living.
In addition, income generated from an inheritance, bequest, or devise is usually taxable.
For inheritances, bequests, and devises that are taxable, the income should be counted only in the month it was received if it was received as a lump sum. If the payments are regular and predictable, they should be prorated (unless they are received monthly) and counted accordingly.
| Example 8: Roger’s aunt passed away, and Roger inherited her rental house. It is worth $100,000. The house is occupied by tenants who pay $800/month in rent. At the time of the deed transfer, the tenants owed $3,200 in back rent. The value of the $100,000 property is not taxable, but if the tenants pay Roger the $3,200 in back rent, that income is taxable and would be counted in the month it was received. If they pay Roger $800/month on an ongoing basis, this income would also be taxable and would be counted based on rules regarding rental income. |
Note: Income from the sale of inherited property is taxable if the property is sold for more than the fair market value on either the date of the decedent’s death or on the alternate valuation date. In Example 9, if Roger were to sell the rental house for $150,000, the $50,000 gain would be taxable. If Roger receives income from the sale in a lump sum, this income would only be counted in the month it was received.
| Example 9: Darcy inherited her husband’s $150,000 life insurance policy. In most cases, life insurance policies are not taxable when they are inherited, so the $150,000 should not be counted as income. However, Darcy receives an ongoing interest payment of $1,200/month from the policy. This amount is taxable and would be counted as unearned income. |
Income generated by an inheritance, bequest, or devise includes situations in which someone is the beneficiary of a trust or estate, and the trust or estate holds assets that are generating income. If the trust or estate distributes income to the beneficiary, the beneficiary is responsible for paying taxes on that income.
| Example 10: 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. |
Do not count workers' compensation benefits. This includes workers' compensation benefits received as a settlement.
Some refugee resettlement agencies have grants available for refugees for their second, third, and fourth month after arrival in the U.S. These are cash grants and can vary in the amount issued. Do not count this income.
If a BadgerCare Plus applicant or member receives a loan and it is available for current living expenses, do not count it as income, even if there is a repayment agreement.
Certain payments received by live-in care providers who provide care to someone enrolled in an HCBW program are not counted for BadgerCare Plus under MAGI budgeting rules. Live-in care providers are typically paid as employees, but some may be self-employed. They may be related to or not related to the person receiving care. In order to not be counted, payments to live-in care providers must meet all of the following criteria:
The payments are for HCBW services provided to a member enrolled in one of the following HCBW programs:
The payments are made to a live-in care provider for services provided to an HCBW member under the member’s written HCBW plan of care. Payments made for skilled services that only a nurse or other health professional may perform are not eligible for this exemption.
The payments are made to a live-in care provider for services provided while the care provider and the HCBW member are living in the same home. The live-in care provider may be related to or not be related to the HCBW member.
The live-in care provider is not providing care to more than 10 people younger than age 19 at the same time or five people age 19 or older at the same time.
If the payments received by the live-in care provider meet all of these criteria, they are not counted when determining eligibility for BadgerCare Plus. If the payments received by the live-in care provider do not meet all of these criteria, the payments must be treated like other countable earnings or self-employment income.
ABLE accounts.
ABLE accounts are tax-sheltered money market savings accounts specifically designed for people with disabilities. Anyone may contribute to these accounts for the disabled beneficiary.
While Wisconsin does not offer residents a state-specific ABLE program, Wisconsin residents may open these accounts in any state where an ABLE program is offered. If an applicant or member has an ABLE account, treat the money in the account as follows:
Do not count contributions to the account, any interest or dividends earned, or other appreciation in value as income.
Exempt all distributions from these accounts to the beneficiary as long as they are for qualified disability expenses. "Qualified disability expenses" means any expenses related to the eligible person’s blindness or disability that are incurred for the benefit of an eligible person who is the designated beneficiary. This includes the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses consistent with the purposes of the ABLE program. Unless the person reports that a distribution was used for nonqualifying expenses, it should be assumed that the distribution was used for qualified disability expenses.
ABLE account funds remaining after a member’s death are subject to estate recovery.
Note: If a third party contributes to someone else’s ABLE account and then later applies for long-term care Medicaid, the contributed funds may be considered divestment.
This page last updated in Release Number: 18-01
Release Date: 04/13/2018
Effective Date: 04/13/2018
The information concerning the BadgerCare Plus program provided in this handbook release is published in accordance with: Titles XI, XIX and XXI of the Social Security Act; Parts 430 through 481 of Title 42 of the Code of Federal Regulations; Chapter 49 of the Wisconsin Statutes; and Chapters HA 3, DHS 2 and 101 through 109 of the Wisconsin Administrative Code.
Publication Number: P-10171