Dependent Child Income (Archive)

The income of a dependent child may be excluded or counted based on the health care program. The definition of a dependent child also varies by program.

Note:  An emancipated child is not considered dependent and does not follow dependent child income rules.

Definitions.

MinnesotaCare.

MA Method A.

MA Method B.

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Definitions

Dependent Child.

A dependent child lives with a parent, legal guardian, relative caretaker, or foster parent and for:

l  MinnesotaCare is a person under age 21.

l  MA and GAMC is a person under 18 years old, or an 18-year-old full-time student expected to graduate by age 19.

Earned Income.

Earned income is money people receive in exchange for work or service, including some training stipends.

Unearned Income.

Unearned Income is money people receive without being required to perform work.

Minor Caretaker.

For purposes of determining income eligibility a minor caretaker is all of the following:

l  Part of a three-generation household.

l  Under age 21.

l  Not emancipated.

l  The birth parent of a dependent child living in the same household.

Three Generation Household.

A three-generation household consists of:

l  Parent of a child under 21 years old who has a child.

l  Child under age 21 who is the parent of a minor child. This person is also referred to as the minor parent or minor caretaker.

l  Child of the minor parent.

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MinnesotaCare

For MinnesotaCare:

l  Exclude the earned income of full or part time students under age 19.

l  Count the earned income of children under age 19 who are not full or part time students.

l  Count the non-excluded unearned Income of all children.

Note:  For more information on what income is excluded for MinnesotaCare see Excluded Income.

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MA Method A

For MA Method A:

l  Count all earned and unearned income of a minor caretaker who is not a dependent child as income to the minor caretaker and minor caretaker's children.

l  Count all non-excluded unearned income of a dependent child as income to the child.

Note:  For more information on what income is excluded for MA Method A see Excluded Income.

l  Exclude the following earned income for dependent children who are not minor caretakers:

n  Workforce Investment Act (WIA) earned income of a full- or part-time student employed at least 37.5 hours per week.

m This exclusion is available for six months out of each calendar year.

m Use the exclusion in the first six months possible.

n  WIA earned income of a dependent child who is not a student.

m This exclusion is available for six months out of each calendar year.

m Use the exclusion in the first six months possible.

n  Earned income of a dependent child who is a full-time or part-time student and employed less than 37.5 hours per week.

n  All earned and unearned income of Refugee Unaccompanied Minors.

l  Count the earned income of dependent children who are not a full- or part- time student.

Example:

Jessica applies for MA for herself and her sons, Randy, age 17, and Jonathan, age 16. Randy attends high school full time and works 20 hours per week. Jessica receives RSDI payments on Randy’s behalf because his father is deceased. Jonathan does not attend school and has a full-time job.

Action:

Take the following action:

n  Exclude Randy's earnings from his job because he is a student and is employed less than 37.5 hours per week.

n  Count the RSDI as unearned income to Randy.

n  Count Jonathan's earned income.

Example:

Melanie, age 17, lives apart from her parents in the community. She receives MA for herself and her six-month-old son. She attends high school part time and works 25 hours per week.

Action:

Count Melanie's earned income because she is a minor caretaker who is not a dependent child. Count her earnings when deeming her income to her son.

Note:  If Melanie received MA as a dependent child on her parents' case, you would exclude her earnings in determining her own eligibility because she is a student working less than 37.5 hours per week.

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MA Method B

Count all income of a dependent child unless excluded under another provision.

Example:

Scott, age 16, is certified disabled by State Medical Review Team (SMRT) and receives MA through the Tax Equity Financial Reconciliation Act (TEFRA) waiver. He attends special education classes part time and works 10 hours per week.

Action:

Because he uses Method B to determine his eligibility, count his earnings.

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