C Deposits to Financial Accounts

 

 

Revised 03/15/2021

Policy

With a few exceptions, deposits to a financial account are assumed to be countable income in the month of deposit.  See the following sections for more information on these exceptions.

 

1)    Direct Deposit

When a person has income deposited directly to a bank account, the funds may be posted before or after the month in which they are payable.  The funds are considered income in the month they would normally be received.

 

2)    Treatment of Other Deposited Income

The following describes how other deposits to a person’s financial account are treated:

If deposits are made...

Then...

By the customer or their spouse

All deposits are assumed to be countable income to the budget group unless proof is provided to show that the deposited money is:

·        From an excluded income type,

·        A transfer of funds from another resource owned by the customer or spouse, or

·        Money from the sale of a resource. 

Exception:

An ALTCS customer’s deposits are not counted as income to the spouse when the spouses are not living together.  Instead, only the allocated amount is counted as unearned income to the spouse.  See MA606.H for details about allocated income.

Into a person’s joint account by a co-owner of the account or a third party

The deposits are considered contributions to the person unless proof is provided that the income is not available to, or used by the person.  See MA705I for details on rebutting ownership of a joint account.

On behalf of another person

Payments a person receives as an agent for a minor child or incapacitated adult is considered income to the child or incapacitated adult.  For example, this would include receipt of child support as a guardian or Social Security as a representative payee. 

The deposit must be clearly identified as the child or incapacitated adult’s income.  The child or incapacitated adult’s name does not need to be on the account.

Example - Income received on behalf of another person

 

3)     Agent’s Misuse of Ward’s Funds

Moneys misused by an agent are considered unearned income to the agent in the month received unless restitution is made.

When the agent restores misused funds to the ward, the restored funds are not considered income to the ward.

Exception:

When the agent misused the ward’s income and that income was not counted for the ward’s eligibility because it was not available to the ward, the restored funds are counted as income to the ward in the month they are restored.

 

Definitions

Term

Definition

Agent

A person or organization acting in a fiduciary capacity on behalf of another person.  An agent includes a power of attorney, representative payee, conservator, or guardian

Fiduciary

A person legally appointed and authorized to manage the income and resources for the benefit of the other person rather than for his or her own profit.

 

Proof

Proof that a deposit was a transfer from another financial account or the conversion of a resource includes:

·        Documentation showing the withdrawal of the funds from another account;

·        Electronic data sources showing a decrease in one account that matches a deposit or increase in another account; or

·        A bill of sale for a resource.

 

Proof that the deposit was from an excluded income type or belongs to a child or incapacitated adult includes

·        Copies of check stubs;

·        Letter from the agency providing the income; or

·        Collateral contact with the agency providing the income.

 

Legal Authority

This requirement applies to the following programs:

Program

Legal Authorities

ALTCS

SSI-MAO

MSP

FTW

42 USC 1382a(a) and (b)

20 CFR 416.1102, 1110, 1111, and 1120

Caretaker Relative

Pregnant Woman

Child

Adult

KidsCare

42 CFR 435.603