Medicaid for the Elderly and People with Disabilities Handbook

Chapter E — General Income

Reminder: Federal law requires that anyone who wishes to apply for Medicaid be allowed to file an application, regardless of the person's ultimate eligibility for services.

Table of Contents

General Income

Texas Administrative Code Rules

General Income

E-1210: Other Terms

Types of Income

E-1310: Relationship of Income to Resources
E-1320: Fiduciary Agent

Garnishment or Seizure

E-1410: Garnishment based on Division of Marital Property
E-1420: Deeming and Court-Ordered Support Payments

Income and Transfer of Assets

Reduction of Checks for Recoupment of Overpayments

E-1610: SSA Overpayments
E-1620: All Other Overpayments

Things That Are Not Income

E-1710: Medical Care and Services That are Not Income
E-1720: Social Services That Are Not Income
E-1730: Sale of a Resource is Not Income
E-1740: Miscellaneous Things That May Not Be Income
E-1750: Proceeds of a Loan
E-1760: Wage-Related Payments
E-1770: Mandatory Payroll Deductions
E-1780: Cafeteria Plan

Income Exempt Under Federal Laws

Housing and Utilities

Education and Employment

Native Americans – Exempt Income

E-2141: Types of Payments Excluded Without Regard to Specific Tribes or Groups
E-2142: Payments to Members of Specific Indian Tribes and Groups
E-2143: Receipts from Lands Held in Trust for Certain Tribes or Groups

Other – Exempt Income

Earned Income Exemptions

E-2210: Income Tax Credits
E-2220: Student Earnings

Unearned Income Exemptions

Other Income Exemptions

E-2410: Hazardous Duty Pay
E-2420: Excluded Burial Fund Interest
E-2430: Certain Designated Accounts
E-2440: Certain Health-Related Payments

Earned and Unearned Income

Types of Earned Income

E-3110: Wages
E-3120: Self-Employment
E-3130: Farm Income
E-3140: Certain Payments in a Sheltered Workshop
E-3150: Certain Royalties and Honoraria
E-3160: Certain Federal Income Tax Refunds
E-3170: Census Bureau Wages

Types of Unearned Income

Sources of Unearned Income

Annuities, Pensions and Other Periodic Payments

E-3311: Medicaid Qualifying Trust Payments
E-3312: Testamentary and Inter Vivos Trusts Payments
E-3313: Revocable and Irrevocable Trusts
E-3314: Exception, Special Needs and Pooled Trust
E-3315: Qualified Income Trust (QIT)

Alimony and Support Payments

Dividends, Interest and Royalties

Interest and Dividends

E-3331.1: Treatment of Interest/Dividends on Fully Countable Resources
E-3331.2: Treatment of Interest/Dividends on Certain Excluded or Partially Excluded Resources
E-3331.3: Treatment of Interest/Dividends on All Other Resources

Income from Joint Bank Accounts

Mineral and Timber Rights

E-3333.1: Indian Fishing Rights

Rents

E-3341: Rental Income Paid to a Third Party
E-3342: Mortgage Payment Made by Third Party
E-3343: Prorating Rental Expenses
E-3344: Rental Expenses
E-3345: Budgeting

Prizes and Awards

Gifts and Inheritances

E-3371: Gifts of Domestic Commercial Transportation Tickets
E-3372: Effective Date of Receipt of Inheritance; Disclaimers
E-3373: Facility Payments

Support and Maintenance In Kind

Variable Income

E-5100: Calculations for Variable Income
E-5200: When to Project Variable Income
E-5300: When Not to Project Variable Income
E-5400: How to Budget Variable Income at Applications
E-5500: How to Budget Variable Income at Redeterminations

Self-Employment Income

Materially Participating

Net Self-Employment Earnings

E-6210: Self-Employment Deductions

Budget Options for Self-Employment

E-6310: Annual Projection
E-6320: Six Months Projection

Variable Income for Self-Employment

Self-Employment Income Examples

Living Arrangement

When Deeming Procedures Are Not Used

When Deeming Procedures Begin

Special Income Exemptions Used in Deeming

E-7410: Military Unearned Income

Support and Maintenance

General Information

One-Third Reduction Rule

One-Third Reduction + $20 Rule

E-8121: Community Attendant Services

Support and Maintenance Items

Exceptions to Counting Support and Maintenance (S/M) Income

Food, Clothing or Shelter as Wages

Living Arrangement

Individual Budgets

Household of Another Person

E-8211: Contributing Less Than Pro-Rata Share
E-8212: Contributing an Earmarked Share of Food and Shelter
E-8213: Contributing an Earmarked Share of Either Food or Shelter
E-8214: Separate Food Purchases

Ownership or Rental Liability

E-8221: Receipt of Support and Maintenance (S/M) from Inside the Household
E-8222: Receipt of Support and Maintenance (S/M) from Outside the Household
E-8223: Receipt of Support and Maintenance (S/M) from Inside and Outside the Household

Companion and Couple Budgets

Household of Another Person

E-8311: Companion Case Not Contributing Pro-Rata Share
E-8312: Companion Case Contributing Pro-Rata Share
E-8313: Couple Case Not Contributing Pro-Rata Share
E-8314: Couple Case Contributing Pro-Rata Share

Ownership or Rental Liability

E-8321: Couple Case Not Contributing Pro-Rata Share
E-8322: Companion Case Not Contributing Pro-Rata Share
E-8323: Companion Case with Contributions Toward Household Expenses

Rent-Free Shelter

Change of Permanent Living Arrangement

Deeming-Eligible Child and Ineligible Parents

E-8610: Excess Contributions Towards Household Expenses
E-8620: Child Living with Parents and Siblings Only
E-8630: Child Living in Own Household with Parents and Another Adult
E-8640: Child Living with Parents in Household of Another Person

Long-Term Care Facilities

Verification and Documentation

Infrequent or Irregular Income

E-9100: Definitions
E-9200: When Income is Not Considered Infrequent
E-9300: When to Apply the Infrequent or Irregular Exclusion
E-9400: Special Treatment for Interest or Dividends