Kansas Family Medical Assistance
Manual (KFMAM)
Eligibility Policy - 4/20/2024
04000
05000: Income Guidelines - There are two types of income, earned and unearned. Income shall include money received from such sources as wages, self-employment, unemployment compensation, property rentals, and pensions.
Modified Adjusted Gross Income (MAGI) is the budgeting methodology used to determine eligibility for all family medical programs. MAGI budgeting is directly tied to federal income tax rules. Income that is taxable according to federal income tax rules is countable for family medical programs. In addition, tax-exempt Social Security income, interest and foreign income are countable.
Income types not specifically addressed as countable or exempt in the following sections will require research to determine if the type of income is taxable according to federal income tax rules. This will be the deciding factor on whether or not income is counted.
05100 General Guidelines - The following general rules are applicable:
5110 - Income must be real. To be real, income must be such that its value can be defined and measured.
5110.01 - Income value must be established by objective measurement.
5110.02 - Income shall be considered available when a client has a legal interest therein and the legal ability to make it available. Earned income is available to the individual producing it and all persons for whom he is a member of their individual budget unit. Unearned income is available to the individual for whom it is intended and all persons for whom he is a member of their individual budget unit.
5110.03 - The income of all persons who are included in the individual budget unit must be considered but will not always be counted. See 5130 for additional information about when an individual may be in the IBU but not have their income included in the determination. If, in the month of application, a member of the IBU has left the home, his or her income shall not be considered as being available to the family in that month. Also see 5400.
5110.04 - A conversion of property from one form to another shall not be considered as income except for the proceeds from a contract for the sale of property.
5120 MAGI Income Threshold - The MAGI Income Threshold is the minimum income requirement that establishes if an individual is required to file taxes is set by the Internal Revenue Service (IRS) and is subject to periodic changes. The MAGI Income Threshold is used to determine when income shall be counted for certain children and tax dependents. It does not apply to non-dependent adults or to children living with non-parental caretakers.
The MAGI Income Threshold is defined annually by the IRS for the previous tax year. The current threshold amounts, or limits are earned income of $12,950 annually or unearned Interest/Dividends income of $1,150 annually. Individuals whose income is above the MAGI Income Threshold are required to file a Federal tax return. Whether or not they actually file a tax return has no impact on how their income is counted for medical assistance purposes.
Note: The MAGI income threshold does not apply to SSA income. SSA income is only counted for minors and tax dependents who have taxable income from earnings or interest/dividends. Otherwise, it is considered exempt.
5130 Countable Income for a Child or Tax Dependent - The countable income of a child or tax dependent may be excluded from their own IBU and other IBUs for which they are a member of according to the rules below.
5130.01 Non-Filer Budgeting Units - When the IBU is based on the non-filer rules as defined in 3120, the income of a child (under age 19) will be excluded when their income is below the MAGI Income Threshold and their parent or step-parent is in the IBU.
When these requirements are not met, all taxable income of the child is included in their own IBU and any IBU that they are a member of.
5130.02 Filer Budgeting Units - When the IBU is based on the filer rules as defined in 3110, also known as Tax Household Budgeting Units, the income of a tax dependent will be excluded when their income is below the MAGI Income Threshold and they are a tax dependent of the Primary Taxpayer. When these requirements are not met, all taxable income of the tax dependent is included in their own IBU and any IBU that they are a member of.
05200 Unearned Income - Unearned income is any income that is not earned and may be derived from benefits (unemployment compensation, Social Security, VA, etc.), pensions, contributions, and settlements. Unearned income received or reasonably assured to be received in a month or in the eligibility base period shall be considered.
Gross unearned income shall be considered unless exempt as noted below.
5210 Unearned Income Payments - Unearned Income Payments
5211 Regular Unearned Income - Regular unearned income shall be considered as income when it is reasonably assured to be available in the same monthly amount in the future. Regular unearned income shall be budgeted in accordance with 6000 and subsections.
5212 Irregular Unearned Income - Irregular unearned income results from income which varies in amount from month to month and is expected to continue. Irregular unearned income shall be budgeted in accordance with 6000 and subsections.
5213 Intermittent Unearned Income - Intermittent unearned income is received on other than a monthly basis such as quarterly, semiannually, or annually. It must be considered and averaged. See 6113. Intermittent unearned income received prior to the first eligibility period shall not be considered. The case record shall clearly indicate that the income is being treated as "intermittent" unearned income.
NOTE: An additional benefit check is provided on an annual basis to retired members of the Kansas Public Employer's Retirement System (KPERS) who began receiving a benefit prior to July 2, 1987. This 13th check is generally identical in amount to the monthly benefit. This check is to be treated as intermittent income and budgeted over the entire year by dividing by 12.
5214 Lump Sums - MAGI income (as defined in 5000) received as a lump sum is counted as income only in the month received.
05220 Countable Unearned Income - The following sections outline the types of countable unearned income.
5220.01 Annuities Income - Payments from an Annuity are countable if they are taxable. Verification is required. If it is not clear if the income is taxable, send the documentation to the Policy Manager for review.
5220.02 Contract Sales - The proceeds received from the contract sale of property are considered unearned income and are countable. Verification is required.
5220.03 Dividends - Regular payments of dividends earned from an investment are countable as income.
5220.04 Insurance Payments - Only recurring insurance payments that are unrelated to life insurance, burial proceeds, death benefits, or the repair and replacement of property are countable. Verification is required. See 5406 for more information about exempt insurance payments.
5220.05 Interest - Regular payments of interest earned from an investment are countable as income.
5220.06 Lottery/Gambling Winnings - Gambling winnings from any source are treated as unearned income in the month received. Gambling winnings are generally cash, prizes or in-kind items won in a game of chance, including but not limited to lotteries, sweepstakes, wagering pools, bingo games, card games, roulette wheels, dice games, slot machines, or any other game involving an element of chance.
Gross amounts are counted even if taxes are taken out prior to paying the household. Gambling winnings are countable using prospective income budgeting standards per 06100 only if the income is expected to continue. In the case of qualified lottery and gambling winnings of $80,000 or greater received in a single payout, the income is to be counted in the month received through a period of up to 120 months, as determined by a formula provided by the 2018 statute, see T5 Gambling Winnings – Income Budgeting Table. Per federal guidelines, states must apply this formula to qualified lottery or gambling winnings received on or after January 1, 2018.
With the exception of winnings resulting from games conducted by a tax-exempt religious or charitable organization, any winnings from a lottery, sweepstakes or wagering pool sponsored by a state, multi-state or multi-jurisdictional lottery organization, or any lump sum winnings from bookmaking, slot machine, roulette wheel, dice table, lottery, numbers game, or similar game of chance conducted by a private or for-profit individual or organization shall be counted in accordance with the T5 Gambling Winnings – Income Budgeting Table. Information received on the application or verbally from the consumer regarding the date of receipt and the gross amount of winnings shall be used by KEES to calculate the monthly amount to be budgeted for this income.
Note: With respect to non-cash prizes, like car or boat, these should continue to be considered as lump-sum income in the month received.
Continued eligibility shall be granted where the counting of income as indicated in this section results in ineligibility and loss of coverage and causes undue medical or financial hardship. For purposes of this provision, hardship shall be defined as follows:
1. Medical Hardship – The individual must demonstrate that the loss of eligibility put the individual at risk of death or permanent disability without the medical coverage.
2. Financial Hardship – The individual must demonstrate that the gambling winnings being counted as income are no longer accessible or available to meet medical needs.
When hardship is granted, the gambling winnings shall no longer be counted as income in determining eligibility beginning with the month the hardship was requested.
5220.07 KPERS - Payments received from the Kansas Public Employee Retirement System (KPERS) are countable as income.
5220.08 Native American Tribal Disbursements - This income type refers to income received from casino profits, also known as Per capita income. Income from gaming is countable. All per capita income received by a Kansas Tribe Members is from gaming. Non-Kansas tribes will require additional research to determine the purpose of the disbursement in order to assess whether it is countable or exempt. When this income is received on other than a monthly basis, it is considered intermittent unearned income and the rules of 5213 apply. Also see 5409 for more information about Native American income types that are exempt.
5220.09 Oil Royalties/Mineral Rights - Payments from Oil Royalties and Mineral rights are countable. Verification is required.
5220.10 Pensions - Income payments from a pension are countable. Benefits are considered the income of the person for whom they are intended.
5220.11 Per Capita - Another term used for Native American Tribal Disbursements. See 5220.08.
5220.12 Railroad Benefits - Railroad benefit payments are countable. Benefits are considered the income of the person for whom they are intended. Verification is required.
5220.13 Rental Income - Income from rental properties shall be treated as countable self-employment income. See 5330.
5220.14 Retirement Income - Retirement income is countable. Benefits are considered the income of the person for whom they are intended.
5220.15 Social Security - Income from Social Security Disability and Retirement benefits are countable. Benefits are considered the income of the person for whom they are intended.
5220.16 Spousal Support - Spousal support payments, or alimony, as a result of a divorce decree effected or modified after December 31, 2018 are not taxable and are thereby considered exempt income for MAGI purposes; however, spousal support payments from agreements made prior to December 31, 2018 continue to be countable. When this is the case and the spousal support is paid through the court, the gross amount before the fee is deducted is considered countable income. The amount of the fee is considered a household expense and is not to be excluded as income.
5220.17 Trust Income - Payments from a non-special needs trust are countable if they are taxable. Verification is required. If it is not clear if the income is taxable, send the documentation to the Policy Manager for review.
5220.18 Unemployment Compensation - The gross amount of unemployment compensation is countable income, even if some of the payment has been intercepted for payment of child support or other repayment plans.
05300 Earned income - Earned income is income which is received as wages, salary, or profit resulting from the performance of services, including managerial responsibilities, by the recipient. Earned income may be derived from self-employment in the client's own business.
5311 Regular Earned Income - Regular earned income results from earnings which are reasonably assured to be available in the same monthly amount in the future. (See 6000 and subsections for budgeting.)
5312 Irregular Earned Income - Irregular earned income results from earnings which vary in amount from month to month and are expected to continue. From a practical standpoint, irregular earnings result from full- or part-time employment when payment is received on any basis other than monthly or twice a month. (See 6000 and subsections for budgeting.)
5313 Intermittent Earned Income - Intermittent earned income is received on other than a monthly basis such as quarterly, semiannually, or annually. Such income is to be considered and averaged. Intermittent earned income received prior to the first eligibility period shall not be considered.
05320 Countable Earned Income - The following sections outline the types of countable earned income.
5320.01 Wages - This is income earned from a job. It includes wages earned for hourly work or a salary. Wages also includes bonus pay received while an employee. Wages received from On-the-Job Training (OJT) are also to be considered as earned income.
Sick pay received for time off while working (i.e., short-term illness) shall be considered earned income when the person is still considered an employee by the employer and the person will be returning to work when recovered. However, when these payments are provided as a temporary disability insurance or worker's compensation the income is not counted as earned income. See also 5400.
Wages withheld by the employer to purchase benefits are counted as earnings in the pay period that the employee would have normally received them. Benefit "credits" offered in addition to wages which can be used to purchase benefits are not counted as income. If the employee does not use all of the credit to purchase benefits, and the employer pays the excess to the employee as part of their wages, the excess paid is counted as earned income.
5320.02 Bonus and Commission Income - Income from bonuses that are received monthly or more frequently shall be included in the amount of earnings from wages. When bonuses are received less frequently then on a monthly basis they shall be treated as intermittent earned income and only countable once they have been received during an eligibility period. See 5313.
5320.03 Garnished or Diverted Wages - Available income shall not be reduced by wage earner plans, garnishments, income withholding orders and similar types of income reductions. Such forms of income withholdings are generally used to meet the individual's previous or ongoing obligations and are considered available for the purpose of determining medical eligibility.
Wages earned by a household member that are garnished or diverted by an employer and are paid to a third party for a household's expenses, such as rent or child support, shall be considered income. However, if the employer pays a household's rent directly to the landlord in addition to paying the household its regular wages, the rent payment shall be excluded as a vendor payment. In addition, if the employer provides housing to an employee, the value of the housing shall not be counted as income.
5320.04 Military Pay - Military pay is countable as earned income with the exception of most special allowances. Members of the military receive monthly allowances for housing, subsistence, and other reasons. Income from allowances is non-taxable, therefore exempt, with the exception of CONUS COLA which is a monthly Cost of Living Allowance for members stationed in the United States. The two most common allowances, Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) are exempt.
5320.05 Overtime - Overtime income is countable and shall be included with regular wages when determining an average.
5320.06 Tip Income - Income from tips shall be included in the amount of earnings from wages for each pay period. Use the amount of average tips reported by the applicant when not included on the paystubs
5320.07 Wages Withheld/Salary Advances - Wages are sometimes paid in advance to an employee, usually at the request of the employee. Wage advances are not counted as income received. Repayment of those advances are not deducted from gross income, either.
However, wages held by the employer as a general practice, even if in violation of the law, shall not be counted as income to the household. For example, it is routine in many places of employment for the first week or two weeks of wages to be withheld and not paid until the following pay period. This is legal and the wages would not be counted until received.
5320.08 Work Program/Training - Income from a Work or Training program, such as College Work Study, WIA - Earned, Job Corps, and AmeriCorps/VISTA are countable.
05330 Self-Employment - Self-Employment income is earned income received directly from one's own business, trade, or profession. Some guidelines to determine if an individual is self-employed include whether the person: (1) holds himself out as a business (e.g., advertises), (2) decides when and where to work, obtains own jobs or sales, and pays own expenses, (3) has a risk of a profit or loss, and (4) pays his own FICA and income taxes (although this guideline, by itself, does not necessarily establish self-employment). The absence of one or more of these criteria indicates that the activity is not self- employment. Each situation must be evaluated on a case-by-case basis and documented in the case file as to whether a certain income is self-employment or not. An adjusted gross income amount must be determined by deducting income producing costs from the gross earnings.
5330.01 - Income from rental property and other income-producing personal property shall be considered self-employment earned income, regardless of the amount of time engaged in the production of the income.
5330.02 - A loss from self-employment cannot be deducted from other income nor can a net loss of a business be considered as an income producing cost.
5330.03 - When at least one person has wages and at least one person is self-employed, separate calculations are required and the countable incomes are then totaled. Self-employment income shall be considered and averaged. (See 6200)
5330.04 - Payments from a roomer or boarder shall be treated as though it were self- employed earned income.
5330.05 - Income from “gig economy” such as (but not limited to) food delivery services, ridesharing or freelance work shall be evaluated on case-by-case basis to determine if it is self-employment or employment.
05400 Exempt Income - With the exception of non-taxable Social Security, non-taxable foreign earned income, and tax-free interest, only income that is taxable is countable. Income from the following sources is exempt as income in the month received. For income types not referenced, additional research is required to determine if the income is taxable.
5401 Child Support - Payments, whether paid for current support, arrears support, or voluntary payments are exempt as income. This includes cash payments and payments made in-kind.
5402 Disability - Disability payments such as those received for Worker’s compensation, short-term disability, or other non-SSA disability payments are exempt as income.
5403 Earnings - Earned income from Strike Pay and Blood/Plasma Sales are exempt.
5404 Educational Income - Income from Grants, Scholarships, Loans, Veteran’s educational income, and Monthly living benefits (stipends) are exempt as income.
5405 Government Payments - Government payments are exempt as income. These payments are described below.
5405.01 Adoption Assistance Subsidy - Payments received for Adoption Assistance are exempt as income in the month received.
5405.02 Cash Assistance - Cash assistance payments, including those received as TAF special allowances are exempt as income in the month received. Examples of Special Allowances payments are special transportation payments and special service payments.
5405.03 Disaster/Emergency Assistance - Federal major disaster and emergency assistance and comparable disaster assistance provided by state or local government or by disaster assistance organizations in conjunction with a presidentially declared disaster are exempt as income in the month received and as a resource in the following months.
This includes disaster unemployment assistance to an individual as a result of a major disaster. Individuals cannot be eligible for any other unemployment compensation and also receive disaster unemployment benefits. Payments are limited to 26 weeks. Central Office will notify staff if such disaster unemployment assistance is paid in Kansas due to a major disaster.
5405.04 Energy Assistance/LIEAP - Payments or allowances made under some federal laws for the purpose of providing energy assistance are exempt from consideration as income in the month received. An example of such federal program is the Department of Health and Human Services' Low Income Energy Assistance Program (LIEAP).
Other home energy assistance furnished by a federal or state regulated entity whose revenues are primarily derived on a rate-of-return basis, by a private nonprofit organization, by a supplier of home heating oil or gas, or by a municipal utility company which provides home energy, if the assistance provided is based on need, is exempt as income in the month received.
5405.05 Executive Volunteer Programs - Payments received through Service Corps of Retired Executives (SCORE) or Active Corps of Executives (ACE) are exempt as income in the month received.
5405.06 Food Stamps - Value of the benefits issued under the current Food Stamp Act are exempt as income in the month received.
5405.07 Foster Care and Permanent Custodianship - Payments received for providing foster care or permanent custodianship are exempt as income in the month received.
5405.08 Foster Grandparents - Any payment provided to volunteers serving as foster grandparents is exempt as income in the month received and as a resource in the following months.
5405.09 HUD Payments/Housing Assistance - Payments from federal housing programs including negative rent payments made to tenants of subsidized housing under Housing and Urban Development (HUD) regulations is exempt as income in the month received and as a resource in the follow months.
5405.10 Independent Living Payments - Payments received for Independent Living are living exempt as income in the month received.
5405.11 Older American Act Payments - Payments received via the Older American Act are exempt as income in the month received. These include the Senior Community Services Employment Program funded under Title V of the Older Americans Act of 1965 (as amended by P.L. 100-175, the Older Americans Act Amendments of 1987) are exempt as income in the month received. Programs in Kansas funded under Title V include Green Thumb, Project Ayuda (serving Wyandotte, Johnson, Douglas, and Shawnee counties), and the Senior Community Service Employment Program through the Midway Chapter of the American Red Cross (serving Sedgwick, Reno, Harper, Kingman, Butler, Cowley, Harvey, and Sumner counties).
5405.12 Refugee Resettlement Funds - Payments received from a Refugee Resettlement Agency are exempt as income in the month received.
5405.13 Senior Health Aids/Companions - Payments received through Senior Health Aides or Senior Companions are exempt in the month received.
5405.14 Tax Refunds/Rebates/Credits - Legislated tax rebates and refunds are exempt as income in the month received. This also includes Earned Income Tax credit, whether received as a lump sum refund or on an ongoing basis.
5405.15 Gate Money - Money paid to a prisoner upon their release shall be exempt as income in the month of receipt.
5406 Insurance Payments - Payments from life or burial insurance as well as payments made for repair or replacement of property are exempt.
5406.01 Life and Burial Insurance Payments - Payments occasioned by the death of another person to the extent that the payments have been expended or committed to be expended for purposes of the deceased person’s last illness and/or burial. Such payments include, but are not limited to, proceeds from a life insurance or burial insurance policy, gifts, and inheritances.
5406.02 Repair and Replacement - Insurance payments received for the repair or replacement of property is exempt as income. This includes income from a one-time payment or a portion of a one-time payment from a settlement for repair or replacement of property or other settlement, including legal services and medical insurance payments.
5407 Interest and Dividends - Interest earned on a burial fund or on a pre-paid burial space contract account is exempt as income in the month received. Dividends earned on a life insurance policy are exempt as income in the month received.
5408 Loans, Gifts, and Contributions - Cash gifts, Loans, Charitable Donations, and Deemed Sponsor income are exempt.
5408.01 Loans - All loans, including loans from private individuals as well as commercial institutions, including deferred educational loans, shall be exempted from household income. Monies received from reverse mortgages are treated as loans, even if payments are regular and predictable.
When verifying that income is exempt as a loan, a legally binding agreement is not required. A simple statement signed by both parties that indicates that the payment is a loan and must be repaid shall be sufficient verification. However, if the household receives payments on a recurrent or regular basis from the same source but claims the payments are loans, the provider of the loans may be required to sign a statement that indicates that repayments are being made or that payments will be made in accordance with an established repayment schedule.
5408.02 Social Fundraising Accounts - Income received from a social fundraising account, such as a Go Fund Me account may be exempt as income depending on the purpose and intent of the account. Contributions received are exempt when the individual donating does not expect to receive anything in return for their contribution. Contributions are also exempt when the payment is made as an investment and the individual expects to receive a return on their investment.
5409 Native American Income - Payments from Tribal owned land, tribal disbursements, Indian Affairs income, and Claims Resettlement Income are exempt. Note: Income from gaming is countable. See 5220.08.
5410 Reimbursements - Income that is a reimbursement or refund is exempt.
Examples of exempt reimbursements are ones for job or training-related expenses such as travel, per diem, uniforms, and transportation to and from the job or training site. Reimbursements that are provided over and above the basic wages for these expenses are excluded; however, these expenses, if not reimbursed, are not otherwise deductible. Reimbursements for the travel expenses incurred by migrant workers are also excluded.
Also exempt are medical and dependent care reimbursements, reimbursements to students for specific education expenses such as travel or books, and jury duty payments.
To be exempt, these payments must be provided specifically for an identified expense other than normal living expenses and used for the purpose intended. When a reimbursement, including a flat allowance, covers multiple expenses, each expense does not have to be separately identified as long as none of the reimbursement covers normal living expenses.
5411 Social Security - Social Security income is exempt as outlined below.
5411.01 SSI - Income of an SSI recipient (including 1619(b) recipients) and retroactive SSI benefits (even if the individual receiving the benefit is no longer an SSI recipient) are exempt as income in the month received. This does NOT apply to persons receiving long term care in Medicaid approved institutions as provided in MKEESM 8112).
5411.02 Social Security Death Benefits - Social Security death benefits are exempt as income when used toward the cost of burial.
5412 Veteran's Income - All forms of veteran’s income are exempt. These include:
Veterans – Aid and Attendance
UME – Unusual Medical Expenses
Reduced VA Pension – LTC
VA Work Therapy
VA Housing Allowance
Veteran’s Disability
Veteran’s Pension
5413 Work Program/Training - Income from a work program may be exempt as income, depending on the type of program and whether or not the income is taxable. Exempt income types are outlined below. Also see 5320.08 for countable work programs.
5413.01 Workforce Investment Act (WIA) - Incentive and Training allowance income received from the Workforce Investment Act of 1998 (WIA) is exempt as income.
5413.02 Vocational Rehab (VR) - Training Allowances and Incentive Maintenance payments received from Vocational Rehabilitation are exempt as income.
5430 Miscellaneous Exempt Income - The following miscellaneous income types are all considered exempt.
5431 Agent Orange - Settlement payments are exempt as income in the month received and as a resource in the following months.
5432 Allocated Income - Income allocated for the support of dependents is exempt as income.
5433 Crime Victims Fund - Payments made pursuant to the Crime Victims Fund (Public Law 103-322), as amended are exempt as income in the month received.
5434 Family Subsidy - Payments provided through the Mental Health and Developmental Disabilities Commission or Family Support payments provided through the Children and Family Services Commission are exempt as income in the month received and as a resource in the following months.
5435 Holocaust Survivors - Reparation payments made to Holocaust survivors are exempt as income in the month received. These payments shall also be exempt for purposes of determining patient liability in a long-term care arrangement.
5436 Hostile Fire/Combat Pay - Hostile fire pay (also known as combat pay) received while in active military service is exempt as income in the month received.
See Policy Memo #2005-03-01 Exclusion of Combat Pay for more detailed information.
5437 Individual Development Accounts (IDA) - The interest on an allowable individual development account (IDA), including authorized matching contributions and accrued interest, is exempt as income as long as the account is maintained. For Working Healthy, income deposited into an IDA is also exempt in the month deposited. IDAs are exempt resources for all programs. An allowable IDA meets the following guidelines:
5437.01 - It is established by or on behalf of a TAF recipient or by or on behalf of an individual participating in the Assets for Independence Demonstration Program (AFIA) and is used for a qualified purpose.
5437.02 - A qualified purpose is one or more of the following:
(a) - post-secondary education expenses for college or vocational-technical school. Learning Quest or other 529 accounts are not considered IDAs;
(b) - first home purchase (must not have owned a home within three years of acquisition); or
(c) - business capitalization (business plan must be approved by financial institution or non-profit loan fund).
NOTE: Any funds withdrawn from an IDA and used for any purpose other than one of those listed above shall count as unearned income in the month withdrawn.
5437.03 - The IDA must be a trust funded through periodic contributions by the establishing individual and may be matched by or through a qualified entity for a qualified purpose.
5437.04 - A qualified entity to match IDA funds for a TAF recipient is either a not-for-profit organization described in section 501(c)(3) of the IRS code of 1986 and exempt from taxation under section 501(a) or a state or local government agency acting in cooperation with a 501(c)(3) organization. For AFIA participants, matching contributions are made by the federal government through a grantee.
5437.05 - AFIA recipients may only contribute to IDAs with income derived from earnings.
Note: The earnings of an adult placed in an IDA are counted as earned income in the month earned.
5437.06 - Parents may establish IDAs for their children as well as for themselves. Children may also contribute their earnings to accounts established by or for them.
5438 In-Kind Income - Benefits are exempt as income in the month received
5439 Japanese Aliens - Payments granted to certain United States citizens of Japanese ancestry and resident Japanese aliens under Title I of P.L. 100-383 (enacted 8-10-88) are exempt as income in the month received and as a resource in the following months.
5440 Student Loan Debt - Student loan debt that is discharged, forgiven, or cancelled after December 31, 2020 or discharged due to death or disability between January 1, 2018 and December 31, 2020.
5441 Ministerial Housing Allowance - A minister’s housing allowance, sometimes called a parsonage allowance or a rental allowance is exempt as income.
5442 Monies Withheld Voluntarily or Involuntarily - Monies withheld from assistance payments (e.g., TAF, GA, SSI) shall be included as countable income if the monies are withheld for the purpose of recovering from a household an overpayment which resulted from the household's fraudulent failure to comply with a state, federal, or federally assisted program which provides assistance on the basis of financial need. (For a definition of "fraudulent," refer to 8400).
5442.01 - Mandatory deductions from military pay for educational purposes shall not be included as income (or as a resource) while the individual is enlisted in the armed services. If individuals enroll in an educational institution after they leave the service, the amount withheld from salary plus any amounts matched from the VA will be treated as countable educational income minus expenses. Individuals who choose not to attend any school will receive the withheld monies in a lump sum payment and the payment shall be exempt per item 5440 above.
5442.02 - In addition, for all medical programs, programs not based on financial need that have a portion withheld to repay a prior overpayment received from that same income source, such as SSA, VA, Unemployment or Worker’s Compensation shall not have the portion withheld counted as income.
5443 Radiation Exposure Compensation - Payments made pursuant to the Radiation Exposure Compensation Act, P.L. 101-426 (10-15-90) are exempt as income in the month received and as a resource in the following months. This law compensates individuals for injuries or deaths resulting from exposure to radiation from nuclear testing and uranium mining in Arizona, Nevada, and Utah.
5444 Rehabilitation Services Payments - Income directly provided by Kansas Rehabilitation Services, except as noted in 5320.08 is exempt as income in the month received and as a resource in the following months. Maintenance payments are also exempt as they are in excess of normal living expenses and are considered a reimbursement.
5445 Relocation Assistance - Payments received under the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 are exempt as income in the month received and as a resource in the following months. The applicant’s or recipient’s equity in a home is to be disregarded to the extent that such equity was purchased with payments under the Uniform Relocation Act of 1970.
5446 Renal Dialysis - Special incentive payments received for renal dialysis patients for care in their own home are exempt as income in the month received.
5447 Ricky Ray Hemophilia Act Fund - Payments made pursuant to the Ricky Ray Hemophilia Relief Fund Act, P.L. 105-369 are exempt as income and as a resource for all programs. The payment is a one-time amount of $100,000.
NOTE: Interest earned on these exempt funds is not exempt as income. See 5220.05.
5448 Shared Living - In shared living arrangements; cash paid from one family to another toward the total cost of shelter is exempt as income in the month received.
5449 Susan Walker v. Bayer - Payments made pursuant to a class settlement in the case of Susan Walker v. Bayer Corporation is exempt as income in the month received and as a resource in the following months. This case involved hemophiliacs who contracted the HIV virus from contaminated blood products. Interest earned on retained funds is not excluded and is countable per 5220.05. Accumulated interest is also countable as a resource beginning the month following the month of receipt, even if commingled with non-exempt funds.
5450 Trust for a VA Child - Money for a child which is held in trust by VA and determined by VA unavailable for subsistence needs is exempt as income in the month received and as a resource in the following months.
5451 Vendor Payments - Money payments that are not payable directly to a household but are paid to a third party for a household expense are vendor payments and exempted as income. A vendor payment is defined as a payment made in money on behalf of a household shall be considered a vendor payment whenever a person or organization outside of the household uses its own funds to make a direct payment to either the household's creditors or a person or organization providing a service to the household. For example, if a relative or friend, who is not a household member, pays the household's rent directly to the landlord, the payment is considered a vendor payment and is not counted as income to the household. Similarly, rent or mortgage payments, made to landlords or mortgagees by HUD or by state or local housing authorities, are other examples of vendor payments and are also exempted.
5452 Spousal Support (Alimony) - Spousal support payments, or alimony, as a result of a divorce decree effected or modified after December 31, 2018 are not taxable and are thereby considered exempt income for MAGI purposes.