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State of Wisconsin |
HISTORY |
The policy on this page is from a previous version of the handbook.
15.5.12 Income Received by Members of a Religious Order
15.5.13 Title V - Older Americans Act of 1965
15.5.15 Earned Income Tax Credit
15.5.17 Special Tax Credit for Certain Government Retirees
Earned income is income from employment. The gross earned income before any deductions are taken out is counted. Count earned income only for the month in which it is received, except when the average number of payments increase due to mailing cycle adjustments.
Note: Occasionally, a regular periodic payment (e.g., wages, title II,or VA benefits) is received in a month other than the month of normal receipt. As long as there is no intent to interrupt the regular payment schedule, consider the funds to be income in the normal month of receipt.
Count in-kind benefits as earned income if they are:
Regular, and
Predictable, and
Received in return for a service or product.
Do not count meals and lodging for armed services members.
To determine the value of in-kind benefits, use the prevailing wage (but not less than the minimum wage) in the community for the type of work the person does to earn the benefits.
This provision applies primarily to teachers and other school employees.
When an employed Medicaid group member is paid under a contract, either written or verbal, rather than on an hourly or piecework basis, determine the period of the contract and then prorate the income from the contract over that period. For example, if the contract is for 18 months, prorate the contract's income over 18 months no matter the number of installments made in paying the income. Do this even if:
There are predetermined vacation periods, or
He or she will only be paid during work periods, or
He or she will be paid only at the end of the work period, season, semester or school year.
When a Medicaid group member reports rental income to the IRS as self-employment income, see Section 15.6.3 Self-Employment Income and Assets.
If he or she does not report it as self-employment income, add "net rent" to any other unearned income on the appropriate worksheet. Determine "net rent" as follows:
When the owner is not an occupant, "net rent" is the rent payment received minus the interest portion of the mortgage payment, and other verifiable operational costs. Operational costs include ordinary and necessary expenses such as insurance, taxes, advertising for tenants, and repairs. Repairs include expenses such as repainting, fixing gutters or floors, plastering, and replacing broken windows.
Capital expenditures are not deductible from gross rent. A capital expenditure is an expense for an addition or increase in the value of the property. It would include improvements such as finishing a basement, adding a room, putting up a fence, putting in new plumbing, wiring or cabinets, paving a driveway.
If an institutionalized person has excess operational costs above the monthly rental income, carry the excess costs over into later months until they are offset completely by rental income. But do the carryover only until the end of the year in which the expenses were incurred.
When a life estate (see Section 16.8.1.6 Life Estate) holder moves off the property and the property is rented, count the net rental income the holder is entitled to receive. The operational costs are the same as the costs the holder was liable for when living on the property.
When he or she receives income from a duplex, triplex, etc. and lives in one of the units, determine "net rent" as follows:
Add the interest portion of the mortgage payment and other verifiable operational costs common to the entire operation.
Multiply the number of rental units by the total in "a."
Divide the result in "b." by the total number of units. This is the proportionate share.
Add the proportionate share "c." to any operational costs paid by the member that are unique to any rental unit. The result is the total member expense.
Subtract the total member expense "d." from the total rent payments to get "net rent."
Count any portion of a jury payment that is over and above expenses as earned income for the month in which it is received.
Count advances on wages as earned income in the month received.
Worker's compensation is compensation for lost wages which would have been earned, except for an injury suffered during the course of employment. Count worker's compensation as earned income in Family Care Non-Medicaid. For EBD cases, it is unearned income.
Effective 01/01/10
Income tax refunds are disregarded income (see Section 16.7.7 Income Tax Refunds).
Disregard a member’s income if he or she:
Meets the definition of a dependent 18-year-old , or
Is under age 19 and enrolled as a full-time student, or
Is under age 19 and enrolled as a part-time student working less than 30 hours per week.
Count the earned income of anyone under age 19 who does not meet any of the criteria listed above.
Disregard any benefit whether cash or in-kind, including but not limited to living allowance payments, stipends, food and shelter, clothing allowance, and educational awards or payments in lieu of educational awards. Disregard any child care allowance to the extent it was used to meet child care expenses to participate in AmeriCorps. Disregard any basic health insurance policy, child care services, auxiliary aid, and services to people with disabilities and the national service.
Disregard all wages paid by the Census Bureau for temporary employment related to Census 2010.
Count severance pay as earned income in the month of receipt. Count severance pay that has been deferred at the employee’s request or through a mutual agreement with his or her employer as earned income when he or she would have received the amount had it not been deferred.
Count any compensation that a member of a religious order receives as earned income if the compensation is for employment, even if the compensation is turned back over to the order.
Count only wages and salaries paid to individuals as a result of their participation in a program funded under Title V of the Older Americans Act of 1965 as earned income.
These programs include, but are not limited to:
Green Thumb.
Experience Works.
The National Urban League.
National Senior Citizens Education and Research Center (Senior Aides).
National Indian Council on Aging.
U.S.D.A. Forest Service.
Wisconsin Senior Employment Program (WISE).
Community service employment programs, such as the Older Americans Community Service Program.
Identify programs funded under the Title V of the Older Americans Act using documents provided by the member, contacts with the provider, or a local council on aging.
Do not count reimbursements (see Section 15.3.19 Reimbursements).
Calculate net amount by deducting one of the following from the gross amount received from each roomer/boarder: $15 roomer only, $111 boarder only, $126 roomer and boarder.
Effective 01/01/10
Disregard EITC payments.
Effective 01/01/10
Disregard actual payments made under Make Work Pay.
Effective 01/01/10
Disregard actual payments made under the Special Tax Credit for Certain Government Retirees.
This page last updated in Release Number: 15-01
Release Date: 06/10/2015
Effective Date: 06/10/2015
The information concerning the Medicaid program provided in this handbook release is published in accordance with: Titles XI and XIX of the Social Security Act; Parts 430 through 481 of Title 42 of the Code of Federal Regulations; Chapters 46 and 49 of the Wisconsin Statutes; and Chapters HA 3, DHS 2, 10 and 101 through 109 of the Wisconsin Administrative Code.
Notice: The content within this manual is the sole responsibility of the State of Wisconsin's Department of Health Services (DHS). This site will link to sites outside of DHS where appropriate. DHS is in no way responsible for the content of sites outside of DHS.
Publication Number: P-10030