INSTRUCTIONS TO STAFF 317:35-5-42
1. An example of a deduction from gross income that must be counted is child support and back child support.
2. Asset Verification System (AVS) is an electronic system used to verify accounts at financial institutions.
3. When income is below the Supplemental Security Income (SSI) standard,
individuals related to aged, blind, or disabled (ABD) must apply for SSI benefits to be eligible for the State Supplemental Payment (SSP) cash assistance.
4. (a) Money deposited into or withdrawn from a qualified Oklahoma
Achieving a Better Life Experience (ABLE) Program account per Sections 4001.1 through 4001.5 of Title 56 of the Oklahoma Statutes or a qualified ABLE Program account set up in any other state per the ABLE Act of 2014, (26 U.S.C. § 529A) is excluded as income or a resource when the individual:
(1) provides documents to verify the account meets exemption criteria;
(2) verifies money deposited in the account does not exceed the annual federal gift tax exclusion amount per 26 U.S.C. § 2503(b).
The current gift tax exclusion amount is $14,000 per calendar year.
Any money deposited in the account in the calendar year that is in excess of the annual federal gift tax exclusion amount is considered as countable income in the amount deposited; and
(3) verifies withdrawals from the account were used to pay qualified disability expenses.
Money withdrawn for reasons other than to pay qualified disability expenses is considered as
income for the month of withdrawal.
(b) The Oklahoma State Treasurer is responsible for certifying an ABLE account. Rules regarding an ABLE account include:
(1) only individuals whose disability was established before 26 years of age can set up ABLE Act accounts and one account is allowed per individual.
(2) there is no limit to the number of persons who can contribute to the ABLE account; and
upon the death of an ABLE Act participant, every dollar remaining in the account must be paid to the state Medicaid agency to repay costs of care received by the individual during life, up to the amount Medicaid paid.
At application and renewal, the
individual must provide proof from the financial institution of the dates and amounts of money deposited into and withdrawn from the
ABLE account in the last 12 months.
Any money deposited in the account in a calendar year that is in excess of the annual federal gift tax exclusion is considered as countable income in the month deposited and as a resource for the following month.
(2) When money is withdrawn to pay qualified disability expenses, the amount withdrawn is excluded from income or resource consideration.
individual must verify, preferably from the financial institution, that the withdrawn funds were used for qualified disability expenses.
(B) Funds withdrawn and not used for qualified disability expenses are considered as income for the month of withdrawal.
(3) Qualified disability expenses means any expenses related to the eligible individual's blindness or disability and approved under Section 529A of the Internal Revenue Code that are made for the benefit of an eligible individual who is the designated beneficiary, including, but not limited to, expenses for:
(D) employment, training, and support;
(E) assistive technology and personal support services;
(F) health, prevention and wellness, financial management, and administrative expenses;
(G) legal fees;
(H) oversight and monitoring; and
(I) funeral and burial expenses.
After computing the new countable income amount, when the
individual continues to be eligible for at least one dollar of SSI, no action is taken on the SoonerCare benefit or SSP amount because SSI makes the correction in retrospective cycle.
6. The Veteran's Affairs (VA) benefit is not reduced to $90 until the
individual is residing in the nursing facility, is approved for SoonerCare (Medicaid), and VA is notified.
The VA income cannot be disregarded until it is reduced to $90, no matter how long the individual has resided in the nursing facility.
It is imperative that SSI be notified as soon as possible
when the individual is expected to remain in the nursing facility longer than three months.
When earned income of $30 or less or unearned income of $60 or less is received from the same source only once per quarter, it is disregarded because it is irregular income.
When income is received more than once a quarter from the same source or is received in subsequent months, it must be counted because it is not considered to be irregular income. For example,
an individual receives earned income of $20 in March and $20 in April, it is counted in both months because it was received in subsequent months although in different quarters.
When an individual receives irregular income from more than one source, add the incomes together and disregard the first $30 of earned income or the first $60 of unearned income per quarter, when both incomes are received only once.
For example, in May an individual receives a birthday gift of $50 and in June he or she receives royalty income of $20.
(The individual only receives royalty income when the accumulated royalties reach $15, so he or she rarely gets a check more than once a year.)
Since the total is $70 from two sources, the first $60 is disregarded and $10 is counted as unearned income in May.
9.The $20 general income exclusion may be subtracted from the combined earned income or the unearned income, but not both.
It is coded in the Income tab of the Family Assistance/Client Services (FACS) Eligibility notebook.
The rest of the allowable earned income deductions are coded in the Non-Temporary Assistance for Needy Families (TANF) expense block in the Income tab.
When the individual has Medicare, refer to Oklahoma Administrative Code 317:35-7-40, 317:35-7-43, and 317:35-7-46 to determine Medicare buy-in eligibility.
11.The child must first be approved through Developmental Disabilities Services (DDS) for one of the Home and Community Based Services waivers.
When the ineligible spouse has earned and unearned income, the ineligible child allocation is deducted first from the unearned income.
When there is remaining income, it is deducted from the gross earned income.
The $20 general income exclusion is coded in the FACS Eligibility notebook Income tab.
The remaining allowable earned income deductions are coded in the Non-TANF expense block in the FACS Income tab.