Income of a child may include, but is not limited to, the following:
The child's share of Social Security benefits, unless it is excluded (See Section 350.2).
The child's share of veterans' benefits.
Court-ordered or voluntary support payments.
Child support is the child's income and should be assigned to the child in eCIS.
NOTE: Child support and veterans' disability benefits are excluded income for MAGI-related MA.
Awards.
Trust fund payments.
Earned income, unless it is excluded (see Section 350.51 and Section 350.52).
NOTE: For information about the income of a child with special needs, see Chapter 315, Children with Special Needs, Section 315.4, Income.
Income that covers more than one child is considered available to each child in equal amounts, unless the payer or court order says it must be handled in another way. The CAO will count only the share of the child who is included in the applicant/recipient group.
The CAO will not count the income of a child who is not included in the applicant/recipient group. If the child is an LRR of a member of the applicant/recipient group, the CAO will determine if income is deemed available.
The CAO will not count RSDI income of a child if the benefits are being paid to an individual:
Who does not live with the child.
Who does not actually make the money available for the support of the child.
If a member of the applicant/recipient group receives the benefits for a child, the CAO will not count the child's benefits if:
The child is not included in the applicant/recipient group.
The child is not an LRR of a member of the applicant/recipient group.
The income can be used only for the child.
NOTE: Types of income that can be used only for the child include RSDI, VA benefits, court-ordered support, allotments, trust fund payments, and voluntary support from a parent. If the income covers more than one child, each child is considered to have an equal share unless the payer or court order says it must be handled in another way.
For TANF/GA-related eligibility the CAO will not count the earnings of a child who is deprived of parental support or care and is any of the following:
Under age 21 and a full-time student.
Under age 21 and a part-time student who is working part-time.
NOTE: Full-time or part-time employment is determined for the time that school is in session. If the child works full-time during a school vacation, they are considered part-time as long as they are expected to go back to school.
Under age 21 and in the Job Corps.
Not a student, but is age 18 or younger and working under a Workforce Investment Act (WIA) program (The Summer Youth program is funded through WIA).
NOTE: The WIA exemption is for a maximum of six calendar months each year.
For TANF/GA-related eligibility the CAO will not count the earnings of a child who does not meet the TANF deprivation conditions and is:
Under age 14.
Between ages 14 and 17 and working under a WIA program.
NOTE: The WIA exemption is for a maximum of six calendar months each year.
To determine if the MAGI-related income of a child (under age 19) is countable review these two factors:
With whom the child resides;
Whether the child would be required to file a tax return.
Child Living with Biological, Adoptive or Step-Parent
If the child is required to file a tax return for the taxable year in which eligibility for MA is being determined, count all of the MAGI-related income
Example: Mary applies for MA for herself and her son, Marty (16). Mary will file taxes and will claim Marty as a dependent. Marty works part-time and his annual earnings exceed the tax filing threshold for a child or tax dependent. When determining eligibility for both Mary and Marty, Marty’s income is counted.
If the child is not required to file a tax return for the taxable year in which eligibility for MA is being determined, exclude all of the MAGI-related income
Example: Steve applies for MA for himself and his daughter, Amy (17). Neither Steve nor Amy will file taxes, and Amy will not be claimed as a dependent. Amy works part-time and has earnings under the tax filing threshold for a child or tax dependent. When determining eligibility for Steve and Amy, Amy’s income is not counted.
NOTE: The Social Security benefit and Railroad Retirement Tier 1 benefit do not count toward the unearned threshold. See Chapter 312, Appendix F for Filing Requirements for Tax Dependents.
Child Residing with Non-Parent
When determining the child eligibility, count all of the child’s MAGI-related income (regardless of whether the child would be required to file a tax return).
Example: Pauline has custody of her granddaughter, Olivia (8) and is applying for MA for both herself and Olivia. Pauline will claim Olivia as a tax dependent. Olivia receives $775 per month in RSDI (Survivor’s). When determining Olivia’s eligibility, all of Olivia’s income will count in her determination.
When determining eligibility for the Non-Parent tax filer:
If the child is NOT required to file a tax return, exclude the child’s MAGI-related income, if the Non-Parent plans to claim the child as a tax dependent.
If the child is required to file a tax return, count the child’s MAGI-related income, if the Non-Parent plans to claim the child as a tax dependent.
Example: Pauline has custody of her granddaughter, Olivia (8) and is applying for MA for both herself and Olivia. Pauline will claim Olivia as a tax dependent. Olivia receives $775 per month in RSDI (Survivor’s). When determining Pauline’s eligibility, none of Olivia’s income will count in Pauline’s determination.
Updated October 30, 2018, Replacing February 14, 2012