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 September 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.

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