North Dakota Administrative Code › Title 75 - Department of Human Services › Article 75-02 - Economic Assistance › Chapter 75-02-02.1 - Eligibility for Medicaid › Section 75-02-02.1-38 - Earned income

Current through Supplement No. 393, July, 2024
Earned income is income that is currently received as wages,
				  salaries, commissions, or profits from activities in which an individual or
				  family is engaged through either employment or self-employment. Income is
				  "earned" only if the individual or family contributes an appreciable amount of
				  personal involvement and effort. Earned income shall be applied in the month in
				  which it is normally received. The following income rules apply to individuals
				  not subject to a MAGI-based methodology:
1. If earnings from more than one month are
				received in a single payment, the payment must be divided by the number of
				months in which the income was earned, and the resulting monthly amounts shall
				be attributed to each of the months with respect to which the earnings were
				received.
2. If a self-employed
				individual's business does not require the purchase of goods for sale or
				resale, net income from self-employment is seventy-five percent of gross
				earnings from self-employment.
3.
				If a self-employed individual's business requires the purchase of goods for
				sale or resale, net income from self-employment is seventy-five percent of the
				result determined by subtracting cost of goods purchased from gross
				receipts.
4. If a self-employed
				individual's business furnishes room and board, net income from self-employment
				is monthly gross receipts less one hundred dollars per room and board
				client.
5. If a self-employed
				individual is in a service business that requires the purchase of goods or
				parts for repair or replacement, net income from self-employment is twenty-five
				percent of the result determined by subtracting cost of goods or parts
				purchased from gross earnings from self-employment.
6. If a self-employed individual receives
				income other than monthly, and the most recently available federal income tax
				return accurately predicts income, net income from self-employment is
				twenty-five percent of gross annual income, plus any net gain resulting from
				the sale of capital items, plus ordinary gains or minus ordinary losses,
				divided by twelve. If the most recent available federal income tax return does
				not accurately predict income because the business has been recently
				established, because the business has been terminated or subject to a severe
				change, such as a decrease or increase in the size of the operation, or an
				uninsured loss, net income from self-employment is an amount determined by the
				county agency to represent the best estimate of monthly net income from
				self-employment. A self-employed individual may be required to provide, on a
				monthly basis, the best information available on income and cost of goods.
				Income statements, when available, shall be used as a basis for computation. If
				the business is farming, or any other seasonal business, the annual net income,
				divided by twelve, is the monthly net income.
General Authority:
NDCC
					 50-06-16,
					 50-24.1-04
Law Implemented:
NDCC
					 50-24.1-02,
					 50-24.1-37;
					 42 USC
					 1396 a(e)