The CAO will consider the gross amount of unearned income when determining eligibility for MA. If the individual receives a benefit that is less than the full amount because of an insurance premium, court-ordered support, recovery of an overpayment that took place in the past, or other deductions, the CAO will count the amount of the benefit before the reduction.
Exception: If an SSI-related individual receives a benefit that is reduced to make up for an overpayment, and if the overpaid amount was counted in determining eligibility for cash assistance or MA when the overpayment happened, the CAO will count the amount of the benefit the individual receives. (See Section 350.63, Excluded Income—SSI-Related.)
Unearned income includes, but is not limited to, the following: 55 Pa. Code § 181.101 55 Pa. Code § 181.281
Retirement benefits, private pensions and annuities, including an amount deducted for an insurance premium.
Note: If a pension is “fixed” (meaning the amount does not change), then the CAO will enter unearned income code 50.
Note: If an applicant receives a pension that is not in U.S. dollars, the CAO will determine how much the amount is equal to in dollars. The CAO can verify the exchange rate by doing an online search, checking a newspaper, or calling a local bank or currency exchange. The CAO will assume that the rate remains the same until the next renewal, unless the individual reports a change. The CAO may use an average of the last six months of exchange rates to determine the rate for the next six months.
Social Security benefits (RSDI), including an amount deducted for the Medicare Part B premium.
Veterans Administration (VA) benefits.
Note: The aid and attendance part of VA benefits must be excluded for SSI-related categories. If the recipient makes any part of the benefit available to support a dependent, that part must be counted as income for the dependent. 55 Pa. Code § 181.81(9)
Reminder: It is possible for an individual to receive VA benefits under multiple claims numbers. For example an individual may be receiving a VA pension under his/her own claim number and other VA compensation under his/her deceased spouse's claim number. In these instances, income from each claim number should be listed separately using CAUNRD screens in CIS or Unearned screens in e-CIS. In order to differentiate between multiple incomes, claim numbers should be entered in the "source field" on the CAURND screen in CIS or the Unearned screen in e-CIS. the CAO should follow this procedure for other types of income as well (e.g., multiple claims with SSA).
Unemployment compensation. 55 Pa. Code § 181.101 55 Pa. Code § 181.281
Workers compensation.
Income from insurance policies that provide cash payments directly to the individual.
Note: If the insurance is assigned to a medical provider, it will be treated as a third-party resource. Because the provider will receive the payment, it will not be treated as income.
Dividends, royalties, and interest in the calendar month posted.
Loans, gifts, and contributions (see Section 350.32, Loans, Gifts, and Contributions).
Educational assistance (see Chapter 314, Students).
Income deemed available from a legally responsible relative (LRR) (see Chapter 355, Deeming Income and Resources).
Rental income.
Note: Rental income may also be earned (see Section 350.4, Rental Property Income).
Sales agreement income.
Note: Consider payments from a sales agreement or contract as unearned income. The amount of the sales agreement or contract is not considered an available resource.
Lump sum nonrecurring payments (see Chapter 357, Lump Sum). 55 Pa. Code § 181.31
Unearned lump sum payments include, but are not limited to, the following:
Federal, state, and local tax refunds.
Life insurance benefits.
Inheritances.
Delayed RSDI, UC, or Workers Compensation benefits.
Lottery winnings.
Past-due court-ordered support payments.
Prizes and awards. 55 Pa. Code § 181.102 55 Pa. Code § 181.281
A prize is a cash payment won in a contest, lottery, or game relating to luck. A individual usually receives an award because of a decision by a court, board of arbitration or similar legal body. A prize or award may be received as a lump sum or as a recurring payment.
Inheritances. 55 Pa. Code § 181.101 55 Pa. Code § 181.281
A cash inheritance received as a one-time payment must be treated as a lump sum.
The CAO will obtain proof of all unearned income and record it in the case record.
Support paid by an LRR for a child or spouse, whether it is court ordered, voluntary, or paid directly to the individual, is counted when determining eligibility for MA. The amount of court-ordered support or alimony may be verified through the Pennsylvania Child Support Enforcement System (PACSES), by a copy of the court order, a copy of a check, or a written statement from the Domestic Relations Office. 55 Pa. Code § 181.104 55 Pa. Code § 181.282
Note: For information about the income of a child with special needs, see Section 315.4.'
For TANF-related or GA-related categories only, a cash contribution or loan from an LRR will be counted as support income. If the contribution or loan is from a putative father, the CAO will count the payment as support if the mother or the putative father verifies, in writing, that the payment is child support.
For TANF-related MA, the CAO will give one support disregard. The disregard is one of:
Actual amount of support up to $50 for spousal support.
Actual amount of support up to $100 if there is one countable child in the budget group.
Actual amount of support up to $200 if there is more than one countable child in the budget group.
The budget group gets only one support disregard. If the budget group receives both spousal and child support, the CAO will apply the support disregard that will most benefit the budget group.
Reminder: The individual is not required to pursue support to be eligible for MA benefits.
Disregard does not apply to past-due support payments. Money paid to cover past-due support payments is considered a lump sum payment. (See Chapter 357, Lump Sum.)
Example: Mrs. Allen receives TANF-related MA for herself and her two children. She has a court order for $300 a month in support. She receives $900 for the first payment, which includes two months of past-due payments. The CAO counts $100 ($300 - $200) as unearned income for the current month. They count $600 as a lump-sum payment.
The CAO will clearly explain to cash assistance and MA applicants or recipients that they do not have to pursue support to be eligible for MA.
Any court-ordered child support received through the EPPI delivery system will be treated the same as any other source of income. It will be counted as income in the month the individual receives it. Any money remaining in future months is counted as a resource.
The CAO will consider a cash loan, gift, or contribution made to a member of the applicant or recipient group as follows:
The CAO will not count any money that is loaned to the applicant/recipient group. The loan must have a repayment statement. Interest earned on the money loaned will be counted as income. 55 Pa. Code § 181.81(10) 55 Pa. Code § 181.263(8)
Note: The CAO should advise the individual to keep the money from a loan in a separate account so that it is identifiable.
Exception: For TANF-related and GA-related categories, money loaned by an LRR is counted as support.
For TANF-related and GA-related categories, a small amount of money given as a gift from an LRR or another individual will not be counted. The gift is excluded as long as it is $50 or less per individual in a calendar quarter. If the gift is meant for more than one individual, the CAO will divide the amount among the number of individuals it is meant to cover. The amount over $50 per applicant/recipient group member will be counted as a resource in the month the individual receives it. 55 Pa. Code § 181.263(8)
For SSI-related categories, if a contribution is given on a regular basis to help support and care for himself or herself, the CAO will count the payment as unearned support income. 55 Pa. Code § 181.104
For TANF-related and GA-related categories, a cash contribution received from a individual who is not an LRR is counted as unearned income unless it is excluded as a loan or gift. If a contribution is received from an LRR, the CAO will count the payment as support. 55 Pa. Code § 181.283
The CAO will count interest income in the calendar month in which it is posted, unless it is excluded in this chapter. (See Section 350.6.)
55 Pa. Code § 181.101 55 Pa. Code § 181.281
Note: The interest income does not need to be withdrawn or actually received by the individual.
For SSI-related categories only, the CAO will not count interest income if: 55 Pa. Code § 181.123(12)
The individual receives it only once in a calendar quarter.
The total of the interest income plus any other irregular unearned income is not over $20 for the month when the individual receives it.
Examples:
Mrs. Baker receives interest on a savings account every other month. On April 1, she receives $8.35 in interest; on June 1, she receives $9.15; on August 1, she receives $9.85; and on October 1, she receives $10.20. The CAO counts the interest received on April 1 and June 1 as unearned income, because the interest was received more than once in the calendar quarter. The interest received on August 1 is excluded. The interest received on October 1 is counted because interest will be received on December 1, which is in the same calendar quarter.
Mrs. Cline receives quarterly interest on her savings account. On April 1, she receives $12.35 in interest, and on July 1, she receives $13.15. On July 15, she wins $50 in the lottery. The CAO does not count the interest she receives in April. They count both the interest and the lottery winnings in July, because the total is more than $20.
For SSI-related categories, the CAO will deem income available to the applicant or recipient group from a spouse who is living with the individual and who is not applying for or receiving TANF, GA, SBP, SSI, or MA. 55 Pa. Code § 181.110
For TANF-related and GA-related categories, the CAO will deem income available to the applicant/recipient group from a spouse or parent who is living with the individual and who is not receiving TANF, GA, SBP, SSI or MA 55 Pa. Code § 181.285
Note: See Chapter 355, Deeming Income and Resources.
Updated February 14, 2012, Replacing July 2, 2008