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Effective: December 1, 2006 |
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21.50.55ar1 - Earned Income Disregard - MA Method B (Archive) |
Archived: April 1, 2009 |
For clients using MA Method B to calculate income disregard the first $65 of earned income and then one half of the remaining earned income.
l This disregard does not have a time limit.
l If another person's income is deemed to the client, apply the disregard to the total combined gross countable earned income. See Deeming of Assets and Income.
Note: If a person who uses Method B due to disability has impairment-related work expenses, deduct the impairment-related work expenses after the $65 work incentive disregard but before deducting one-half of the remaining earned income.
Example:
Norm and his wife Marge apply for MA using Method B. Both are 67 years old and employed part time. Norm earns $200 per month. Marge earns $500 per month.
Action:
To determine each person's eligibility, start with the combined total gross income of $700 because they each deem their income to the other because they are married. First subtract $65 for a total of $635. Then subtract half of the remaining earned income. $635 – $317.50 = $317.50.