When Income is Counted

When Income is Counted. A. Generally, count income in the earliest month it is: 1. Received by the individual; 2. Credited to an individual’s account; or 3. Set aside for an individual’s use. B. For Medicaid eligibility purposes, all income is determined monthly and counted in the month the income is received. 1. However, for institutional clients, income that varies in amount or frequency is averaged to determine Medicaid Income, provided the client is income-eligible for Medicaid in the month the payment is received without averaging. C. There are exceptions to counting income in the month of receipt: 1. Occasionally, a periodic payment (like wages, Title II or VA benefits) is received in a month other than the month of normal receipt. As long as there is no intent to interrupt the regular payment schedule, the funds are considered to be income in the normal month of receipt. a) The most common types of situations where this would apply are: 1) Advance Dated Checks. When the payer advance dates a check because the regular payment date falls on a weekend or holiday, there is no intent to change the normal delivery date. When this occurs, consider the check income in the normal month of receipt. 2) Electronic Funds Transfer. When an individual’s money goes to a bank by direct deposit, the funds may be posted to an account before or after the month they are payable. When this occurs, treat the electronically transferred funds as income in the month of normal receipt.