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Wisconsin Department of Health and Family Services Obsolete Medicaid Eligibility Handbook For the current MEH, see http://www.emhandbooks.wi.gov/meh-ebd/ For the current BC Plus Handbook, see http://www.emhandbooks.wi.gov/bcplus/ |
4.1.5.7 Governor's Central City Initiative
4.1.5.8 Income and EITC Tax Refunds
4.1.5.13 Income Received by Members of a Religious Order
4.1.5.14 Title V – Older Americans Act of 1965
4.1.5.15 Room and Board Income
Earned income Income is anything you receive in cash or in kind that you can use to meet your needs for food, clothing, and shelter. is income from gainful employment.
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.
In-kind services that do not meet all three of the above criteria.
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 MA 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
S/he will only be paid during work periods, or
S/he will be paid only at the end of the work period, season, semester or school year.
When a MA group member reports rental income to the Internal Revenue Service ( IRS ) as self-employment income, see 4.2.3 and 4.2.4.
If s/he 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 such expenses 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 (4.5.8.1.5) holder moves off the property and the property is rented, count the net rental income the holder is entitled to receive. Net rental income is the gross rental income minus taxes,
insurance, and other operational costs. The operational costs are the same as the costs the holder was liable for when living on the property
When s/he 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 client that are unique to any rental unit. The result is the total client expense.
Subtract the total client 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-MA and Family MA cases. For EBD cases, it is unearned income.
Count hourly income from the Governor's Central City Initiative as earned income. This program is only in Milwaukee County.
See Assets, 4.5.7.7 and 4.5.7.8.
Disregard a client’s income if s/he:
Meets the definition of a dependent 18-year-old (3.5.1.3), 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.
Count the living allowance or stipend as earned income. Disregard any child care allowance to the extent is 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 educational award of $4,725 for each year of completed service.
Disregard all wages paid by the Census Bureau for temporary employment related to Census 2000. Apply this disregard from February 1, 2000 through December 31, 2000.
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/her employer as earned income when s/he 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 gainful employment, even if the compensation is turned back over to the order.
Count the compensation as unearned income if it is not earned through gainful employment.
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 client, contacts with the provider, or a local council on aging.
Do not count reimbursements (4.1.2.8).
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.
This page last updated in Release Number : 07-02
Release Date: 02/01/07
Effective Date: 02/01/07
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