Nebraska Administrative Code
Topic - HEALTH AND HUMAN SERVICES SYSTEM
Title 477 - MEDICAID ELIGIBILITY
Chapter 22 - INCOME FOR NON-MODIFIED ADJUSTED GROSS INCOME (NON-MAGI) PROGRAMS
Section 477-22-003 - EARNED INCOME

Current through March 20, 2024

003.01 DEFINITION. Earned income is money received from wages, tips, salary, commissions, bonuses, holiday pay, or profits from activities in which an individual is engaged as a self-employed person or as an employee. Earned income does not include reimbursement for employment-related expenses such as fuel, mileage, lodging, or meals.

003.02 IN-KIND INCOME. For programs in which age, blindness, or disability is an eligibility requirement, earned income includes any food, clothing, shelter, or other items provided in lieu of wages.

003.03 SELF-EMPLOYMENT. Self-employment is an activity or work effort performed by the individual for the purpose of generating income. Passive receipt of income from a resource does not constitute self-employment. For self-employed individuals, the net amount of income, after payment of expenses, is used to determine eligibility. Gross income and expenses must be verified. If the self-employed individual files taxes on this source of income, then the taxable amount of income from the self-employment may be used.

003.03(A) OFFSET OF INCOME. Losses from self-employment may be used to offset other earned income of the individual or a financially responsible spouse or relative. Self-employment losses cannot be used to offset unearned income.

003.04 CONTRACTUAL INCOME. Income paid on a contractual basis is prorated over the number of months covered under the contract, even if the client is paid in fewer months than the contract covers.

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