The CAO will consider payments that an individual receives in return for services as earned income. The CAO will determine the total amount of earned income before any deductions (such as taxes, personal expenses, or dependent care) are taken out.
NOTE: In some situations, pre-tax deductions must be deducted from gross income for MAGI MA. (See Section 312.51, Income Deductions.)
The CAO will count income from the following sources as earned income:
Wages (including tips).
Salaries.
Commissions and bonuses.
Housing and utility allowances paid to clergy. These allowances are excluded for MAGI MA if certain criteria are met. See Chapter 312.45 for detail.
Royalties earned from publishing something.
Money for services such as speaking to a group.
Money for services in a sheltered workshop or work activities center.
Money from an AmeriCorps State and National program or the AmeriCorps National Civilian Community Corps (NCCC) program.
NOTE: AmeriCorps Volunteers in Service to America (VISTA) income is not counted.
Earnings from therapeutic activities (such as medical or clinical studies for sleep disorders, fibromyalgia, drug trials, etc.)
Profit from self-employment (see Chapter 352, Self-Employment)
Lump sum payments of earned income, such as delayed wages (see Chapter 357, Lump Sum)
NOTE: For Non-MAGI MA determinations, the CAO will count a lump sum payment as a resource unless it would be better for the individual to count it as income.
For MAGI-related MA, a lump sum payment is always considered income in the month it is received.
Employee sick benefits if the individual plans to return to work.
Rental income.
NOTE: Rental income may also be unearned (see Section 350.4, Rental Property Income)
NOTE: Payments to employees that are not included as wages (for example, repayments for travel expenses) are not considered income. They are used to repay the employee for an expense that someone else is responsible to pay.
A payment is considered when an individual receives it or it is set aside for their use.
The CAO will verify and record all earned income in the case record.
Updated September 5, 2024, Replacing June 12, 2024