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Effective: March 1, 2009 |
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20.25.10ar2 - In-Kind Income (Archive) |
Archived: June 1, 2011 |
In-kind income is income, benefits or payments a person receives in a form other than cash. In-kind income can be earned or unearned. It may be payment for work or service (earned income) or a non-cash gift or contribution (unearned income). This section discusses common types of in-kind income and how it is treated for Minnesota Health Care Programs.
MinnesotaCare, MA Method B, MA-EPD, Medicare Savings Programs, Long-Term Care, and GAMC.
In-kind income includes, but is not limited to:
l Free rent in exchange for caretaking duties.
Note: If the caretaker receives a paycheck with an amount for rent deducted, the gross earnings are earned income, not in-kind income.
Example:
Joyce performs caretaking duties for her apartment building. She receives a paycheck for caretaking from which her rent is deducted.
Action:
This is earned income, not in-kind income. Count the gross amount of Joyce’s paycheck (before the rent is deducted) as earned income for all health care programs.
Example:
Keeshawn is a caretaker of his apartment complex in exchange for free rent. He does not receive a paycheck.
Action:
This is in-kind income.
l Free room and board provided by a friend or relative.
Example:
Londa’s house was flooded. She is staying with her brother until the house can be repaired. Her brother is not charging her to stay with him.
Action:
This is in-kind income.
l Free clothing or household goods provided by a community organization.
l Exchange of services, such as babysitting.
Example:
Rhonda has her neighbor, Glen, babysit her children when she needs to run errands. In exchange for his babysitting services, Rhonda dusts and vacuums his house.
Action:
This is in-kind income.
Example:
Alonzo is a pastor. His church allows him to live in the parsonage at no charge. The church will not provide him cash in lieu of the housing.
Action:
This is in-kind income.
Example:
Peter is a priest. He is an employee of the church and he lives in his own home. His church pays him cash to reimburse him for his housing.
Action:
This is not in-kind income. Consider Father Peter’s reimbursement as earnings from employment and count it as income for all health care programs. See Earned and Unearned Income.
MinnesotaCare, MA Method B, MA-EPD, Medicare Savings Program, Long-Term Care, and GAMC
Exclude all in-kind income.
Count the value of in-kind income if the client has a choice of receiving cash or in-kind income.
l If the client has the option to receive cash, count the cash payment as:
n Earned income if the income was in exchange for work or service.
n Unearned income if the income was not in exchange for work or service.
l If the client does not have the option to receive cash, exclude the payment.
Example:
Leon picks strawberries for a local farmer. The farmer gives Leon free strawberries for his efforts.
Action:
Request that Leon attempt to be paid in cash for his strawberry picking rather than in strawberries. If the farmer cannot pay Leon, this is in-kind income and is excluded.
Example:
Marcy is an apartment caretaker. She receives free rent in exchange for her duties. She does not receive a paycheck with rent deducted. The apartment complex Marcy works for gives caretakers the choice of receiving a paycheck or free rent.
Action:
Marcy's free rent is in-kind income. Count the value of Marcy's rent as earned income for Method A, because she could receive cash in lieu of rent. Exclude the value of the rent for all other programs.