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Effective: March 1, 2009 |
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20.05ar2 - Availability of Income (Archive) |
Archived: June 1, 2011 |
Count available income unless it is excluded under another manual provision. This section explains how to determine if income is available.
What if Availability is Unclear?
For all programs, income is available when the client has a legal interest in a liquidated sum and has the legal ability to make that sum available for support and maintenance. Income is usually available in the following situations:
l The client receives the income.
l Someone else receives the income on behalf of the client.
Example:
Evan is disabled and receives RSDI. His mother is his representative payee and receives Evan’s RSDI for him.
Action:
Evan’s mom receives the income on Evan’s behalf. Count the RSDI as income to Evan, not his mother.
Example:
Joe receives a Veteran’s Administration (VA) disability pension. His ex-wife and minor children, who do not live with Joe, receive VA dependent benefits based on his account. The award letter indicates that Joe has designated the dependent benefits be issued directly into his ex-wife’s account. Joe had the choice of receiving the dependent benefits directly and then distributing them to his children.
Action:
The VA dependent benefits are not available to Joe. Even though he could have received them, he would have been receiving them on behalf of his children. His children are the ones with the legal interest in the income. Count the benefits as income for each child who receives the benefit.
l The employer or other payor owes the client the money but withholds the income at the client's request or under a court order.
Example:
David asks his employer to withhold his last two paychecks of the year until the following tax year.
Action:
This income is available. David has access to the income and a legal interest in the income. He is not accessing the income by his own choice. The paychecks are available on the date they would normally be paid to David.
l Income is withheld from payments due to a garnishment or to pay a legal debt or obligation. See Garnishments and Other Withholdings for further information.
Example:
Rhoda is in arrears for her child support payments. $300 is garnished from each paycheck.
Action:
Count the $300 as income in Rhoda’s income calculation because it is a garnishment.
For all programs, income is unavailable if the client:
l cannot gain access to the income.
Example:
Dakota has a court order requiring her ex-husband to pay $400 per month child support for their two children. He is paying only $300 per month and efforts to enforce the full order have been unsuccessful.
Action:
Only the $300 child support that is actually paid is available. The unpaid portion is unavailable because Dakota has attempted to gain access, but has been unable to do so.
l receives money to cover someone else’s expenses and then uses that money to pay for those expenses.
Example:
Judy and Ellen are roommates. Each month Ellen gives Judy $300, Ellen’s portion of the rent. Judy forwards the money to their landlord.
Action:
Do not count the $300 as income to Judy.
Note: This is not the same as payments people receive from renting or providing room and board in property they own or are purchasing. See Roomer/Boarder Income, and Rental Income.
l receives benefits under credit life and disability insurance coverage. Payments under these policies are issued to, or on behalf of, borrowers to cover payments on loans, mortgages, etc. in the event of death or disability. These insurance payments are made directly to the loan or mortgage companies, etc., and are not available to the client.
For every program except MinnesotaCare, a client must try to gain access to potentially available income as a condition of eligibility.
l Document that the income is permanently unavailable if they cannot gain access.
l Deny or terminate MA or GAMC if clients refuse to cooperate in trying to gain such access.
What if Availability is Unclear?
For all programs, follow your agency's procedures to submit a policy question to HealthQuest when availability is not clear.