Previous Policy (413-2 was previously found in 401-1 until November 1, 2021)
A. Definition
Income in-kind is a benefit received by the individual in a form other than a cash benefit or payment.
1. Earned income in-kind is countable income for all programs.
2. If the individual did not perform any service for the benefit, it is unearned income in-kind.
With the exceptions noted below for Aged, Blind and Disabled programs and Long-term Care policy, if the individual worked for the benefit, it is earned income in-kind. This includes the value of food, shelter or other items received instead of a cash wage.
B. ABD and Long Term Care
When an individual receives in-kind income for the following services, the income is treated as unearned income in-kind, not earned income in-kind. Unearned income for food and shelter does not count for nursing home or waiver programs (415-10).
1. Domestic services provided in the home of the employer.
2. Agricultural services.
3. Services that are not in the regular course of the employer's business or trade.
4. In-kind income to members of the Uniformed Services.
5. Food and/or shelter provided to employees on the employer's business premises, for the employer's convenience, and, if shelter, acceptance by the employee is a condition of the employment.
If the in-kind income the individual receives for any of the above services is either food or shelter, see 415-10 to decide if some of it must be counted as income. Only count the value of unearned income in-kind for food and shelter expenses. Unearned income in-kind that is not food and shelter and cannot be used to get food and shelter does not count as income.
C. Family, Child and Pregnant Medically Needy Programs
Unearned income in-kind does not count. It is all exempt.
D. MAGI
1. See 440-2 for earned income counting rules for MAGI programs.
2. Unearned income in-kind is not countable.