Medicaid Policy                                                                 

419 Earned Income

Effective Date: November 1, 2021

Previous Policy (419 was previously found in section 405 until November 1, 2021)

 

A.    Definitions 

 

Earned income is income in cash or in-kind for which a person performs a service.  It includes benefits received by the individual as a reward for service, such as free shelter or vendor payments.  It includes any additional allowances for shelter given to a member of the armed forces.

 

1.  ABD

Some in-kind income received in exchange for services is not treated as earned income.  Refer to Sec. 413-2 and 415-10 for the types of  income that are treated as unearned income in-kind, not earned income in-kind, even though the individual performed some work or service in exchange for the in-kind benefit.

2.  MAGI-Based Programs

    The MAGI methodology follows IRS tax law. Refer to 440-3 and 440-4 for the types of income that are countable or exempt.