10- 144 C.M.R. ch. 332, § 17.5-1
Attributed Income: Attributed income means the amount of tips reported to IRS by large restaurants. It is based on a formula and may not reflect the amount actually received by the employee. The attributed tips are shown on the W-2. It is the responsibility of the employer to keep a daily log of tips actually received. The log of tips will be used to determine the amount of tips countable as income. If there is reason to believe that tips are being underreported, the individual and, with the individual's permission, the employer or collateral sources should be contacted.
Contract Income: Contract income means income received by employees for a set period of time. It may be a full year or for a shorter term, such as school teachers. Divide the most recent contract income by the length of the term of the contract to determine the monthly average.
Corporation - C : C Corporation means a business that has been incorporated as a C corporation. The income of the corporation is owned by the corporation and is not countable to the individual unless it is distributed to the individual as income.
Corporation - LLC, Sub-S or S: LLC, Sub-S or S Corporation means a business that has been incorporated as an LLC, Sub-S or S corporation. The income of these corporations is owned by the individual.
Earned Income: Earned income means income received in payment for the labor or services of an individual. It includes cash payments, wages, salaries, commissions, sheltered workshop wages, and profits from self-employment, severance, contractual payments and deferred compensation.
Fluctuating Income: Fluctuating income means income received by an employee in different amounts each pay period or at irregular intervals. The differences may be due to the number of hours worked, hourly wage rate, output (such as piecework and some types of commissions) or the number of employers (such as baby sitting). In these cases, the individual's income must be examined over the broadest period of time possible. If the "year to date" (YTD) figure is an accurate reflection of the current situation, divide the amount by the number of weeks the YTD covers and budget this average as regular weekly income. If the YTD is not accurate, the average weekly income should be based on a review of income representative of the current situation. If there are unusually high or low weeks, then an exploration of how likely they are to continue must be made and their inclusion or exclusion documented.
Lump Sum Income: Lump sum income means a non-recurring payment received as a result of an accumulation of income or windfall income. Some examples are: retroactive portions of Social Security, Workers' Compensation, Unemployment, Disability, VA or other benefits, pay raises, inheritances, and lottery winnings. Lump sum income is treated as income in the month of receipt and as an asset (if applicable) in the following month. See Section 4.40 of this Part for SSI-Related eligibility group exclusions to income and Part 16, Section2.30 for SSI-Related eligibility group exclusions as an asset.
Partnership: Partnership means an agreement between two or more individuals who share profit and loss in a business. The specific terms of a partnership determine whether income and assets are owned by the individual unless the provisions of Section 3.8.1 of this Part apply.
Regular Income: Regular income means income received by an employee at regular intervals and in the same amount each pay period. This includes income of salaried employees and hourly wage earners who work the same number of hours at the same hourly pay each week. The amount of income to be used is based on the frequency it is received.
Seasonal Income: Seasonal income means income that is not received year round. During the off-season, no income is received from the seasonal occupation. Seasonal income is budgeted for the period that the individual is actually working. To determine an anticipated amount, use the income received for the most recent season of employment, taking into consideration any expected increases or decreases in income.
Self-Employment Income: Income received by a self-employed individual who is engaged in a business enterprise. This includes independent contractors, franchise holders, owners / operators, farmers, people who produce and sell a product, and service-type businesses. If the most recent tax return is available showing the profit or loss, and there have been no major changes, then the monthly gross income is determined by dividing the net profit or loss amount by twelve. The net profit or loss can be found on the appropriate IRS schedule such as the Schedule C. If a tax return is unavailable, the profits have changed considerably, or the business was started after the beginning of the tax year, the most detailed records showing the net profit should be used. The records may include ledger sheets, receipt books, self-employment work sheets, or any reasonable form of documentation. All deductions allowed by the Internal Revenue Service, including depreciation, may be used.
Some sources of income, though exempt from taxation, are counted in MaineCare. An example is Difficulty of Care payments. The amount that is counted will be the gross receipt minus expenses associated with the production of this income. The net loss from one source of self-employment is deducted against other earnings including other sources of self-employment income of the individual, his/her spouse or other members of the assistance unit. This applies whether a couple filed a joint income tax return or separate returns, and regardless of which member of the assistance unit incurred the loss. This includes, in SSI - Related categories, the ineligible spouse and parents of disabled children. Do not allow a deduction for losses from a prior year.
Sole Proprietorship: Sole Proprietorship means a business owned by the individual. The business is not incorporated under IRS rules. The individual owns all the assets and income of the business.
Unearned Income: Unearned income means income received for something other than payment for the labor or services of an individual. It includes Social Security, Veteran's Benefits, pensions, dependent's allotments, maintenance agreements, contributions, support payments, annuities, dividends, interest, or unemployment compensation. Service charges are not deductible in determining dividend or interest income.
10- 144 C.M.R. ch. 332, § 17.5-1