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State of Wisconsin |
Release 24-02 |
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 meet all of the following criteria:
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. In order to determine the value of the in-kind benefits, the verification must include the amount of time the person does the work activity each month.
| Example 1: | Sue weeds her neighbor’s garden about an hour a week in exchange for a hot meal. The in-kind value of this exchange is the prevailing wage, not less than minimum wage, for the weekly hour of weeding that Sue does for her neighbor. The value is not based on the value of the hot meal. Sue is not a landscape architect or a master gardener, so the prevailing wage would be minimum wage. The required verification for this in-kind income is documentation, such as a signed statement, from her neighbor that Sue weeds an hour a week for her neighbor in exchange for a hot meal. |
| Example 2: | Roy walks his neighbor’s dog a few times a month in exchange for transportation to and from his doctors’ appointments. Roy tells the worker that he thinks this is worth $20 a month for the 8 hours a month he walks the dog, which would equal $2.50 an hour. The worker would ask for verification that includes how often and for how long each time Roy walks the dog in exchange for transportation to and from appointments. Since Roy is not a bonded dog walker or a professional dog trainer, the worker would enter minimum wage as a reasonable prevailing wage for this exchange. |
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 regardless of the number of installments made in paying the income. Do this even if any of the following are true:
When a Medicaid group member reports rental income to the IRS as self-employment income, see Section 15.6.4 Self-Employed Income.
If the owner does not report it as self-employment income, see Section 15.4.23 Rental Income.
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 that would have been earned, except for an injury suffered during the course of employment. Count worker's compensation as unearned income. The amount of the income is the amount that the applicant or member can access. This may be the entire lump sum if distributed at once or the monthly amount available for withdrawal if the total sum was placed in a restricted account (for example, as a result of a settlement).
Effective January 1, 2010, income tax refunds are disregarded income (see Section 16.7.7 Income Tax Refunds).
Disregard a member’s income if he or she meets any of the following criteria:
Count the earned income of anyone younger than 19 years old 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 the Census.
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:
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 the net amount by deducting one of the following from the gross amount received from each roomer and/or boarder:
Effective January 1, 2010, disregard EITC payments.
Effective January 1, 2010, disregard actual payments made under Make Work Pay.
Effective January 1, 2010, disregard actual payments made under the Special Tax Credit for Certain Government Retirees.
Count income that an inmate earns from a prison or jail job that pays less than minimum wage, such as jobs through Badger State Industries (BSI). This income does not need to be verified.
Virtual currency is counted as income when it is:
See SECTION 15.4.26 VIRTUAL CURRENCY for information about the sale of virtual currency.
This page last updated in Release Number: 22-02
Release Date: 08/01/2022
Effective Date: 08/01/2022
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