E-5100, Calculations for Variable Income

Revision 09-4; Effective December 1, 2009

Average monthly income that is predictable but varies in amount from month to month. Types of monthly income that require averaging include, but are not limited to:

  • earned income;
  • royalty income; and
  • interest income.

Variable income can be from one source or a combination of sources.

For eligibility budgets, treatment of variable income is the same whether the person is in the community or in an institutional setting.

Treatment of variable income in co-payment budgets applies only to a person in an institutional setting (for example, a Home and Community-Based Services waiver program or a nursing facility).

There are additional treatments for variable income for the co-payment budgets that include reconciliation and restitution. See Chapter H, Co-Payment.

As specified in Section E-9000, Infrequent or Irregular Income, do not average income for the eligibility test that meets the definition of irregular or infrequent.

See Chapter G, Eligibility Budgets, for instructions on determining income eligibility. The examples in this section are for demonstration purposes only. They may not reflect the current spousal allowance amounts.