Code of Maine Rules › 10 - DEPARTMENT OF HEALTH AND HUMAN SERVICES › 144 - DEPARTMENT OF HEALTH AND HUMAN SERVICES - GENERAL › Chapter 332 - MAINECARE ELIGIBILITY MANUAL › Part 17.5 - INCOME › Section 144-332-17.5-1 - DEFINITIONS

Current through 2024-29, July 17, 2024
Attributed Income:
Attributed income means the
					 amount of tips reported to IRS by large restaurants. It is based on a formula
					 and may not reflect the amount actually received by the employee. The
					 attributed tips are shown on the W-2. It is the responsibility of the employer
					 to keep a daily log of tips actually received. The log of tips will be used to
					 determine the amount of tips countable as income. If there is reason to believe
					 that tips are being underreported, the individual and, with the individual's
					 permission, the employer or collateral sources should be contacted.
Contract Income:
Contract income means income
					 received by employees for a set period of time. It may be a full year or for a
					 shorter term, such as school teachers. Divide the most recent contract income
					 by the length of the term of the contract to determine the monthly
					 average.
Corporation - C :
C Corporation means a
					 business that has been incorporated as a C corporation. The income of the
					 corporation is owned by the corporation and is not countable to the individual
					 unless it is distributed to the individual as income.
Corporation - LLC, Sub-S or S:
LLC, Sub-S or S
					 Corporation means a business that has been incorporated as an LLC, Sub-S or S
					 corporation. The income of these corporations is owned by the individual.
Earned Income:
Earned income means income
					 received in payment for the labor or services of an individual. It includes
					 cash payments, wages, salaries, commissions, sheltered workshop wages, and
					 profits from self-employment, severance, contractual payments and deferred
					 compensation.
Fluctuating Income:
Fluctuating income means
					 income received by an employee in different amounts each pay period or at
					 irregular intervals. The differences may be due to the number of hours worked,
					 hourly wage rate, output (such as piecework and some types of commissions) or
					 the number of employers (such as baby sitting). In these cases, the
					 individual's income must be examined over the broadest period of time possible.
					 If the "year to date" (YTD) figure is an accurate reflection of the current
					 situation, divide the amount by the number of weeks the YTD covers and budget
					 this average as regular weekly income. If the YTD is not accurate, the average
					 weekly income should be based on a review of income representative of the
					 current situation. If there are unusually high or low weeks, then an
					 exploration of how likely they are to continue must be made and their inclusion
					 or exclusion documented.
Lump Sum Income:
Lump sum income means a
					 non-recurring payment received as a result of an accumulation of income or
					 windfall income. Some examples are: retroactive portions of Social Security,
					 Workers' Compensation, Unemployment, Disability, VA or other benefits, pay
					 raises, inheritances, and lottery winnings. Lump sum income is treated as
					 income in the month of receipt and as an asset (if applicable) in the following
					 month. See Section 4.40 of this Part for SSI-Related eligibility group
					 exclusions to income and Part 16, Section2.30 for SSI-Related eligibility group
					 exclusions as an asset.
Partnership:
Partnership means an agreement
					 between two or more individuals who share profit and loss in a business. The
					 specific terms of a partnership determine whether income and assets are owned
					 by the individual unless the provisions of Section 3.8.1 of this Part
					 apply.
Regular Income:
Regular income means income
					 received by an employee at regular intervals and in the same amount each pay
					 period. This includes income of salaried employees and hourly wage earners who
					 work the same number of hours at the same hourly pay each week. The amount of
					 income to be used is based on the frequency it is received.
Seasonal Income:
Seasonal income means income
					 that is not received year round. During the off-season, no income is received
					 from the seasonal occupation. Seasonal income is budgeted for the period that
					 the individual is actually working. To determine an anticipated amount, use the
					 income received for the most recent season of employment, taking into
					 consideration any expected increases or decreases in income.
Self-Employment Income:
Income received by a
					 self-employed individual who is engaged in a business enterprise. This includes
					 independent contractors, franchise holders, owners / operators, farmers, people
					 who produce and sell a product, and service-type businesses. If the most recent
					 tax return is available showing the profit or loss, and there have been no
					 major changes, then the monthly gross income is determined by dividing the net
					 profit or loss amount by twelve. The net profit or loss can be found on the
					 appropriate IRS schedule such as the Schedule C. If a tax return is
					 unavailable, the profits have changed considerably, or the business was started
					 after the beginning of the tax year, the most detailed records showing the net
					 profit should be used. The records may include ledger sheets, receipt books,
					 self-employment work sheets, or any reasonable form of documentation. All
					 deductions allowed by the Internal Revenue Service, including depreciation, may
					 be used.
Some sources of income, though exempt from taxation, are
					 counted in MaineCare. An example is Difficulty of Care payments. The amount
					 that is counted will be the gross receipt minus expenses associated with the
					 production of this income. The net loss from one source of self-employment is
					 deducted against other earnings including other sources of self-employment
					 income of the individual, his/her spouse or other members of the assistance
					 unit. This applies whether a couple filed a joint income tax return or separate
					 returns, and regardless of which member of the assistance unit incurred the
					 loss. This includes, in SSI - Related categories, the ineligible spouse and
					 parents of disabled children. Do not allow a deduction for losses from a prior
					 year.
Sole Proprietorship
: Sole Proprietorship means
					 a business owned by the individual. The business is not incorporated under IRS
					 rules. The individual owns all the assets and income of the business.
Unearned Income:
Unearned income means income
					 received for something other than payment for the labor or services of an
					 individual. It includes Social Security, Veteran's Benefits, pensions,
					 dependent's allotments, maintenance agreements, contributions, support
					 payments, annuities, dividends, interest, or unemployment compensation. Service
					 charges are not deductible in determining dividend or interest
					 income.