Mississippi Administrative Code
Title 23 - Division of Medicaid
Part 104 - Income
Chapter 9 - Sources and Treatment of Earned Income
Rule 23-104-9.7 - Royalties and Honoraria
Universal Citation: MS Code of Rules 23-104-9.7
Current through September 24, 2024
A. These payments are defined as follows:
1. Royalties include
compensation paid to the owner for the use of property, usually copyrighted
material (e.g., books, music, or art) or natural resources (like minerals, oil,
gravel or timber). Royalty compensation may be expressed as a percentage of
receipt from using the property or as an amount per unit produced.
a) To be considered royalties, payments for
the use of natural resources also must be received:
1) Under a formal or informal agreement
whereby the owner authorizes another person to manage and extract a product
like timber or oil; and
2) In an
amount that is dependent on the amount of the product actually extracted.
2. An
honorarium is an honorary or free gift, reward or donation usually provided
gratuitously for services rendered (like a guest speaker), for which no
compensation can be collected by law. The amount also may include payment for
items other than services rendered, e.g., lodging or travel
expenses.
B. These payments are treated as follows:
1. Royalties
are earned income when they are:
a) Received
as part of a trade or business; or
b) Received by a person in connection with
any publication of his work such as publication of a manuscript, magazine
article or artwork.
2.
While royalties may involve natural resources, an outright sale of natural
resources by the owner of the land or by the owner of rights to use the land
constitutes conversion of a resource. Proceeds from the conversion of a
resource are not income.
3. Absent
evidence to the contrary, assume the amount of any honorarium received is in
consideration of the actual services provided by the individual and treat as
earned income. Any other payment received in cash or in-kind connected with
service is unearned income to the extent it exceeds the individual's expenses.
a) If the income from royalties/honoraria
that are earned income are not allowed. However, such expenses are deductible
from royalties/honoraria that are unearned income.
Social Security Act §1902 (r)(2); 42 CFR §435.601(b) (Rev 1994).
Disclaimer: These regulations may not be the most recent version. Mississippi may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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