Nebraska Administrative Code › Topic - HEALTH AND HUMAN SERVICES SYSTEM › Title 469 - ASSISTANCE TO THE AGED, BLIND, OR DISABLED PROGRAM › Chapter 2 - ELIGIBILITY REQUIREMENTS › Section 469-2-010 - INCOME

Current through June 17, 2024
Need is determined by considering the amount of total net
				  income of the Aged, Blind or Disabled or State Disability Program individual,
				  and spouse or other essential person whose needs are included in the budget, in
				  relation to individual requirements.
010.01
DEFINITION OF
				INCOME.
Income is defined as gain or recurrent benefit received in
				money, or in-kind, from employment, business, property, investments, gifts,
				benefits, or annuities, at regular, or irregular, intervals of time.
010.01(A)
AVAILABILITY.
All income, whether earned, or unearned,
				is considered if received and currently available for the use of the
				individual.
010.01(B)
TYPES OF INCOME.
010.01(B)(i)
EARNED
				INCOME.
Earned income is money received from wages, tips, salary,
				commissions, profits from activities in which an individual is engaged as a
				selfemployed person or as an employee, or items of need received at no cost in
				lieu of wages.
010.01(B)(i)(1)
EMPLOYMENT-RELATED REIMBURSEMENT.
Reimbursement for
				employment-related expenses such as mileage, lodging, or meals is not
				considered earned income.
010.01(B)(i)(2)
CONTRACTUAL
				INCOME.
Income paid on a contractual basis is prorated over the
				number of months covered under the contract, even if the recipient is paid in
				fewer months than the contract covers.
010.01(B)(i)(3)
IN-KIND
				INCOME.
In-kind income is the value of food, clothing, shelter, or
				other items received in lieu of wages.
010.01(B)(i)(4)
DISREGARDS FOR
				SELF-EMPLOYMENT.
Operating expenses related to producing the goods
				or services, and without which the goods or services could not be produced, are
				deducted from gross income. Operating expenses may include:
(a) Cost of goods sold;
(b) Advertising;
(c) Bad debts from sales or
				services;
(d) Bank service
				charges;
(e) Car and truck
				expenses;
(f) Commission;
(g) Employee benefit programs;
(h) Freight or shipping costs;
(i) Insurance;
(j) Interest on business
				indebtedness;
(k) Laundry and
				cleaning;
(l) Legal and
				professional services;
(m) Office
				supplies and postage;
(n) Rent on
				business property;
(o) Repairs and
				maintenance;
(p)
				Supplies;
(q) Utilities and
				telephone;
(r) Wages; and
(s) Transportation other than to and from
				work and child care.
010.01(B)(i)(5)
OPERATING
				EXPENSES - FARM INCOME.
The following expenses related to farm
				income are considered operating expenses:
(i)
				Cost of goods sold;
(ii) Cost of
				labor;
(iii) Repairs and
				maintenance;
(iv)
				Interest;
(v) Rent of farm,
				pasture;
(vi) Feed
				purchased;
(vii) Seeds, plants
				purchased;
(viii) Fertilizers,
				lime, and chemicals;
(ix) Cost of
				machines leased;
(x) Supplies
				purchased;
(xi) Breeding
				fees;
(xii) Veterinary fees,
				medicine;
(xiii) Gasoline, fuel, or
				oil;
(xiv) Storage,
				warehousing;
(xv)
				Insurance;
(xvi)
				Utilities;
(xvii) Freight,
				trucking;
(xviii) Conservation
				expenses;
(xix) Land clearing
				expenses; and
(xx) Employee benefit
				programs.
010.01(B)(i)(5)(a)
OPERATING EXPENSES NOT ALLOWED.
The following expenses
				are not allowed as operating expenses:
(i)
				Depreciation;
(ii) Personal
				business expenses such as subscriptions, dues to professional organizations and
				unions, training courses;
(iii)
				Personal transportation;
(iv)
				Purchase of capital equipment;
(v)
				Payments on the principal of loans; and
(vi) Business-related entertainment
				expenses.
010.01(B)(i)(5)(b)
1040 TAX
				DOCUMENT VERIFICATION.
If the 1040 tax document is used to verify
				income, do not allow depreciation as a cost of operation and do not count
				capital gains and other gains from lines 13, 14, and 15 of Form 1040 as
				income.
010.01(B)(i)(5)(c)
OFFSET OF EARNINGS.
If an individual has a combination
				of farm or self-employment income and regular earned income, the regular
				earnings may be offset with a loss from the self-employment or farm
				operation.
010.01(B)(ii)
UNEARNED
				INCOME.
Unearned income includes but is not limited to:
(a) Retirement, Survivors, and Disability
				benefits;
(b) Railroad
				Retirement;
(c) Child
				support;
(d) Military service
				benefits;
(e) Civil service
				benefits;
(f) Unemployment
				compensation;
(g) Gifts;
(h) Disability insurance benefits;
(i) Disability benefits paid by an employer,
				not including sick leave; and
(j)
				Returns from securities or investments, such as stocks, bonds, annuities, or
				savings, in which the individual is not actively engaged.
010.01(B)(ii)(1)
SUPPLEMENTAL
				SECURITY INCOME BENEFITS.
Supplemental Security Income benefits
				are not used in computing the budgets, but the Federal Benefit Rate is used by
				the system to calculate the amount of the state supplemental payment.
010.01(B)(ii)(2)
CONTRIBUTIONS.
Contributions are verified payments
				which are paid to or for the unit. Contributions received regularly to aid in
				the support of the recipient, either in the form of money payments or items of
				need, are considered unearned income.
010.01(B)(ii)(2)(a)
TEMPORARY
				CRISIS ASSISTANCE.
In determining initial eligibility only, a
				contribution is not counted when the applicant states that:
(i) The individual has no income and has been
				forced to share a living arrangement with a self-supporting individual;
				or
(ii) An individual who is not in
				the household is paying the applicant's shelter costs; and
(iii) The applicant plans to make other
				arrangements such as move, pay all or a share of the expenses, as soon as the
				applicant has income.
010.01(B)(ii)(2)(b)
NURSING
				FACILITY, ASSISTED LIVING WAIVER, OR HOSPITAL CARE.
Contributions
				to, or for, an individual who is receiving nursing facility, Assisted Living
				Waiver, or hospital care are considered unearned income in the applicant or
				recipient's budget if Medicaid is or will be paying any part of the nursing
				facility, Assisted Living Waiver, or hospital care.
010.01(B)(ii)(3)
LIFE INSURANCE
				PREMIUMS.
Payment of premiums on small protective life insurance
				policies is not considered a contribution.
010.01(B)(ii)(4)
HEALTH INSURANCE
				PREMIUMS.
Payment of a health insurance premium by another
				individual is not considered a contribution as long as the premium is paid to
				the insurance company, not to the individual.
010.01(B)(ii)(5)
THIRD PARTY
				MEDICAL PAYMENTS.
Income received from a third party that pays the
				applicant or recipient directly is:
(i)
				Disregarded if it is refunded to the provider or the Department as
				reimbursement for a specific service; or
(ii) Counted as unearned income if the
				recipient fails or refuses to refund these payments.
010.01(B)(ii)(5)(a)
INCOME-PRODUCING POLICIES.
Income received from an
				insurance policy that supplements the applicant or recipient's income is
				treated as unearned income. These policies provide income regardless of the
				type of service being provided or the condition of the applicant or recipient.
				If it is verified that the income was applied to medical bills, the income is
				not counted in the applicant or recipient's budget.
010.01(B)(ii)(6)
INHERITANCE AND
				GIFTS.
If the applicant or recipient receives a gift or
				inheritance, it is considered unearned income in the month of receipt or
				report, and is used in the budget the first month possible, considering timely
				notice. Any unspent remainder is considered a resource in the following
				month.
010.01(B)(ii)(7)
LIFE ESTATE OR LAND CONTRACT INCOME.
If an applicant
				receives periodic life estate or land contract income annually, semi-annually
				or quarterly, and the last periodic payment has been spent before the
				application, the life estate or land contract income may be considered
				unavailable and not counted in the budget. When the application is approved
				notify the recipient that receipt of the next payment must be reported within
				ten days and that the life estate or land contract income must then be counted
				in the budget.
010.01(B)(iii)
IRREGULAR
				INCOME.
Irregular income is income, earned or unearned, which
				varies in amount from month-to-month or which is received at irregular
				intervals. This may be due to irregular employment, but even when an individual
				works regularly, the income may be irregular because of factors such as
				seasonal increases or decreases in employment and earnings, such as day labor,
				sales work on a commission basis, or child care.
010.01(B)(iv)
ACCUMULATED BENEFIT
				PAYMENTS.
Accumulated payments of Retirement, Survivors, and
				Disability Insurance; Railroad Retirement; Veteran's Benefits or Pensions;
				Worker's Compensation; or other benefit payments which are received in a single
				sum are not considered income. Any unspent remainder is considered a resource
				in the month following the month of receipt, or report, taking into account the
				timely notice provision.
(1) Exception: The
				unspent portion of a Retirement, Survivors, and Disability Insurance;
				Supplemental Security Income; or state supplemental retroactive payment is
				excluded for six months following the month of receipt.
010.01(B)(v)
COMBINED CASE WITH A
				LUMP SUM.
When an individual in an Aid to Dependent Children case
				or an individual in an Assistance Aged, Blind, or Disabled case receives a lump
				sum, the way the money is treated depends upon which individual the lump sum is
				intended for. Retirement, Survivor, Disability Insurance and Supplemental
				Security Income lump sums are excluded as a resource for up to six months.
010.01(B)(v)(1)
ASSISTANCE AGED,
				BLIND, OR DISABLED PARENT AND AID TO DEPENDENT CHILDREN CHILD.
If
				the lump sum is intended for an Aged, Blind, or Disabled parent, the money is
				considered for the parent. The following month the money becomes a resource and
				must be divided proportionately between the cases.
010.01(B)(v)(2)
ASSISTANCE TO THE
				AGED, BLIND, OR DISABLED CHILD AND AID TO DEPENDENT CHILD PARENT.
If the lump sum is intended for a Blind or Disabled child, the money is
				considered for the child. As the child does not have relative responsibility
				for other members of the family, the money is considered only for the child's
				Blind or Disabled case.
010.01(B)(vi)
POTENTIAL
				INCOME.
Potential income is defined as income based on
				entitlement, or need, which is usually determined by an administering agency as
				a result of an application for benefits by the individual. Potential income
				includes, but is not limited to, Retirement, Survivors, Disability Insurance,
				categorical assistance, Railroad Retirement, Veterans or Military Service
				benefits, Unemployment Compensation, Disability Insurance benefits, and
				Worker's Compensation. Medicare is not considered a potential benefit.
010.01(B)(vi)(1)
NEED TO APPLY
				AND COMPLY WITH REQUIREMENTS.
A recipient is expected to make
				grant application for, and accept benefits, immediately after the recipient is
				notified of the apparent entitlement to the benefits. The recipient is notified
				on a Notice of Action of the number of days left in which to apply.
010.01(B)(vi)(2)
VETERAN'S
				BENEFITS.
Applicants or recipients who are veterans, their
				spouses, and the widows of veterans may be eligible for Aid and Attendant
				services. This service may be available and should be explored if the
				individual resides in a nursing home, in his or her own home, in an Adult
				Foster Home or other alternate arrangement when the individual requires aid
				with daily living activities.
010.01(B)(vi)(3)
SUPPLEMENTAL
				SECURITY INCOME PROGRAM.
If an applicant or recipient has not
				applied for Supplemental Security Income Program, an application must be filed
				immediately.
010.01(B)(vi)(3)(a)
SUPPLEMENTAL SECURITY INCOME REFERRAL.
An applicant or
				recipient must be referred to Supplemental Security Income if:
(i) The individual lives alone and has
				monthly unearned income less than the referral amount for an
				individual;
(ii) An eligible couple
				are living together and have monthly unearned income less than the referral
				amount for a couple; both must apply for Supplemental Security Income;
				or
(iii) An individual is in a
				nursing home and has unearned income of less than $50 per month.
010.01(B)(vii)
SCHOOL DISTRICT
				PAYMENTS.
If a school-aged child is receiving nursing home care,
				including an Intermediate Care Facility, Intermediate Care Facility for
				Developmental Disability, Skilled Nursing Facility, or chronic care, and the
				school district is contracting with the facility in providing the child's
				educational needs, the school district payment is disregarded as income if the
				payment is designated for educational services only.
(1) If any or all of the school district
				payment is for residential services, that portion must be shown as Payment on
				Services.
(2) If the school-aged
				child resides in a board and room or other alternative care facility, determine
				if the school provides payment for the child's board and room.
(3) If payment is being made to the facility,
				the payment is disregarded as income.
010.01(B)(viii)
VERIFICATION OF
				INCOME.
Income must be verified every 12 months.
010.01(B)(viii)(1)
PROSPECTIVE
				BUDGETING.
An average of the most recent three months' actual
				income is used to arrive at the gross income amount for the income period. This
				figure is used to project medical eligibility for the next 12 months unless:
(i) There was a significant change in the
				income of the previous three months; or
(ii) A significant change is anticipated
				during the projected 12-month period.
(iii) Income is stable and only one month's
				income must be used.
(iv) Income
				fluctuates and an average of the three most recent consecutive months must be
				used.
010.01(B)(viii)(1)(a)
CHANGE.
The recipient must report the following
				changes:
(i) New employment must be reported
				to the Department and if receiving Supplemental Security Income to Social
				Security Administration within 10 days;
(ii) Termination of employment;
(iii) Change in the amount of monthly income,
				including:
(1) All changes in unearned
				income, including the beginning and termination of unearned income;
				and
(2) Changes in the source of
				employment, in the wage rate, and in employment status, such as part-time to
				full-time, or fulltime to part-time. The recipient must report new employment
				within ten days of receipt of the first paycheck, and a change in wage rate or
				hours within ten days of the change.
(3) Change in household composition, such as
				the addition or loss of a unit member; or
(4) Change, or receipt of, a resource
				including cash on hand, stocks, bonds, money in a checking or savings account,
				or a motor vehicle.
010.01(B)(ix)
RETROACTIVE STATE
				DISABILITY PROGRAM MEDICAL ELIGIBILITY.
To determine retroactive
				State Disability Medical Program eligibility, the month's actual income is
				used.
010.01(B)(x)
INCOME AS IT APPLIES TO RESOURCES.
Income received by
				a recipient during any one month for maintenance costs may not be considered a
				resource for that month. Any income not spent for maintenance is considered a
				resource in the subsequent month.
010.01(B)(xi)
COMPUTATION OF
				INCOME AND INCOME DISREGARDS.
The following list allowable income
				disregards:
010.01(B)(xi)(1)
GENERAL $20 DISREGARD.
Every unit receives a $20
				income disregard. A married couple who is living together and budgeted together
				is considered a household unit and gets one $20 disregard. The income disregard
				is applied to unearned income first; any remainder is subtracted from earned
				income for:
(a) Recipients who are receiving
				Assisted Living Aged and Disabled Waiver services receive the $20
				disregard.
(b) Recipients who are
				living in a nursing home, public institution, hospital or other medical
				institution, do not receive a $20 disregard.
010.01(B)(xi)(2)
EARNED INCOME
				DISREGARDS.
The amount deducted from adjusted gross earned income
				or the amount after deduction of the cost of operation if self-employment
				income, and the remainder of the general disregard from wages or
				self-employment, for each unit is as follows:
010.01(B)(xi)(2)(a)
AGED OR
				DISABLED RECIPIENTS.
The earned income disregards apply to:
(1) Aged or disabled individuals;
(2) The aged, blind, or disabled
				recipients;
(3) Ineligible
				spouse;
(4) Essential person;
				or
(5) Sponsors of aliens for
				deeming purposes.
010.01(B)(xi)(2)(a)(i) Disregard the first
				$65 plus one-half of the remainder in determining countable income.
010.01(B)(xi)(2)(b)
BLIND OR BLIND AGED RECIPIENTS.
Determine net income
				for blind or blind aged recipients by disregarding the first $85 plus one-half
				of the remainder.
010.01(B)(xii)
DEEMING INCOME OF
				RESPONSIBLE PERSONS.
Income of the following individuals is
				considered in determining a recipient's eligibility when they do not receive
				Supplemental Security Income:
(a) Parent for
				child age 17 or younger and still considered part of the household;
				and
(b) Sponsor for an alien.
010.01(B)(xii)(1)
PARENT.
If the individual does not receive
				Supplemental Security Income the following guidelines must be used to determine
				if the parent income is deemed:
(a) If the
				minor is living in the same household with parent, the parent's income must be
				deemed.
(b) If the minor is
				temporarily absent from the home but is still considered part of the household,
				the parent's income must be deemed. Temporary absence includes, but is not
				limited to, school attendance where the minor returns to the home on a regular
				basis such as weekends, vacations, or summers.
(c) If the minor is permanently out of the
				home and no longer considered part of the household, the parent's income must
				not be deemed. This includes facilities for persons with developmental
				disabilities or mental illness.
010.01(B)(xii)(2)
EXCEPTIONS TO
				THE DEEMING REGULATIONS.
If a child age 17 or younger leaves a
				nursing facility or hospital where that child was receiving an institutional
				personal needs amount payment from Supplemental Security Income, then goes home
				under a waiver, the Social Security Administration must be notified of the
				waiver eligibility. Even though income and resources of the parent may make the
				child ineligible for State Supplemental Income, if the child is
				waiver-eligible, Supplemental Security Income continues the institutional
				personal needs payment amount without deeming income and resources of the
				parent.
010.01(B)(xii)(3)
DEEMING OF INCOME OF SPONSORS OF ALIENS.
One-hundred
				percent of the income and resources of a sponsor, and sponsor's spouse if they
				are living together, must be considered when determining the eligibility of an
				eligible alien who applies for Assistance to the Aged, Blind, or Disabled
				payment or State Disability Program if the sponsor has signed an affidavit of
				support under Section 213A of the Immigration and Nationality Act. The
				sponsor's income and resources will be considered available to the alien until
				the alien:
(1) Becomes a U.S.
				citizen;
(2) Has worked 40
				qualifying quarters of coverage as defined under Title II of the Social
				Security Act or can be credited with the qualifying quarters as provided under
				Section 435 and the alien did not receive any federal means tested public
				benefit during that time period.
010.01(B)(xii)(3)(a)
DEFINITION
				OF A SPONSOR.
A sponsor is an individual who:
(i) Is a citizen or national of the United
				States or an alien who is lawfully admitted to the United States for permanent
				residence;
(ii) Is 18 years of age
				or older;
(iii) Lives in any of the
				50 states or the District of Columbia; and
(iv) Is the person petitioning for the
				admission of the alien under Section 204 of the Immigration and Nationality
				Act.
(v) An organization is not
				considered a sponsor.
010.01(B)(xii)(3)(b)
ALIEN
				DUTIES.
As an eligibility requirement, the alien is responsible
				for:
(i) Providing income and resource
				information from the sponsor; and
(ii) Obtaining the necessary cooperation from
				the sponsor.
(iii) If the alien
				does not provide the necessary information, they are not eligible for
				assistance.
010.01(B)(xii)(3)(c)
SPONSOR OF
				MORE THAN ONE ALIEN.
When an individual is a sponsor for two or
				more aliens who are living in the same home, the amount of deemed income and
				resources of the sponsor, and the sponsor's spouse if living with the sponsor,
				is divided equally among the aliens.
(i) When
				an individual sponsors several aliens but not all apply for assistance, the
				sponsor's total deemable income and resources are applied to the needs of the
				aliens who apply for assistance.
010.01(B)(xii)(3)(d)
DEEMING
				EXCEPTION.
If a sponsored immigrant demonstrates that they or
				their children have been battered or subjected to extreme cruelty by a spouse
				or a parent or by a member of the spouse's or parent's family who is residing
				in the same household as the alien, deeming may be waived if a judge,
				administrative law judge, or Immigration and Naturalization recognize the
				battery or cruelty.
010.01(B)(xiii)
COMPUTATION OF
				NET INCOME.
010.01(B)(xiii)(1)
INCOME DISREGARDED.
Income disregarded for the
				Assistance to the Aged, Blind, or Disabled Payment or State Disability Program
				recipient is not considered in determining the eligibility of or the amount of
				assistance for the recipient or any other individual. Savings from disregarded
				income are considered the same as assets accumulated from any other
				source.
010.01(B)(xiii)(2)
INCOME TAXES PAID.
Income taxes that are paid on
				unearned income are not deducted from the income for budgeting
				purposes.
010.01(B)(xiii)(3)
GARNISHMENTS AND OVERPAYMENTS.
If income, earned or
				unearned, is being garnished, the garnishment is not deducted from income in
				the budgeting process. If unearned income is being reduced because of a
				previous overpayment, the amount of the benefit before the deduction of the
				overpayment is considered as income.
010.01(B)(xiii)(4)
OFFSET OF
				EARNINGS.
If a recipient has a combination of farm,
				self-employment, and regular earned income, a loss from one source of income
				may be used to offset a gain from another source.