§ 181.132. Deductions from earned income.
The following amounts are deducted from earned income in the order listed in determining income eligibility:
(1) Portion of $20 monthly deduction not deducted from unearned income. The portion of the $20 monthly deduction in § 181.131(b) (relating to deductions from unearned income) which has not been deducted from unearned income is deducted from earned income in the same month for each applicant/recipient group.
(2) Sixty five dollars of earned income in a month. An employed aged, blind or disabled applicant/recipient is entitled to an earned income deduction of $65 of his gross earned income per month.
(3) Earned income of a disabled applicant/recipient used to pay impairment-related work expenses. Earned income used by an applicant/recipient who is disabled and under 65 years of age to pay impairment-related work expenses is excluded. This exclusion is given to an applicant/recipient who is disabled and 65 years of age or older if he had received MA benefits as a disabled recipient in at least one of the 12 consecutive months prior to the month that he reached 65 years of age. This exclusion is also given to an applicant/recipient who is disabled and 65 years of age or older if it can be determined that the person should have been determined eligible for MA benefits as a disabled MA recipient in at least one of the 24 consecutive months prior to the month that he reached 65 years of age and was denied. This exclusion is not given to blind applicants/recipients. Impairment-related work expenses include, but are not limited to:
(i) Payments for attendant care services if assistance is needed by the applicant/recipient in traveling to and from work, while at work, and at home because of his impairment.
(ii) Payments for a medical device if the applicant’s/recipient’s impairment requires him to use the device to work.
(iii) Payments for a prosthetic device if the applicant’s/recipient’s impairment requires him to use the prosthetic device to work.
(iv) Payments for impairment related nonmedical appliances and equipment and residential modifications needed by the applicant/recipient for his employment.
(v) Payments for drugs and medical services if necessary to the applicant/recipient to control his impairment.
(vi) Payments for installing, maintaining and repairing the items listed in subparagraphs (i)—(v) that are necessary for the applicant’s/recipient’s employment.
(vii) Payments for similar items and services not listed in subparagraphs (i)—(vi) which are directly related to the applicant’s/recipient’s impairment and needed by him to work.
(4) One-Half of remaining earned income in a month. An employed aged, blind or disabled applicant/recipient is entitled to a deduction of 1/2 of the remaining earned income after the deduction in paragraph (2), and when applicable, the deductions in paragraphs (1) and (3).
(5) Earned income of a blind applicant/recipient used to pay expenses attributable to earning the income. Earned income of an applicant/recipient who is blind and under 65 years of age which is used to pay expenses reasonably attributable to the earning of the income. This exclusion is given to an applicant/recipient who is blind and 65 years of age or older if he had received MA benefits as a blind recipient in at least one of the 12 consecutive months prior to the month that he reached 65 years of age. This exclusion is also given to an applicant/recipient who is blind and 65 years of age or older if it can be determined that the person should have been determined eligible for MA benefits as a blind MA recipient in at least one of the 24 consecutive months prior to the month that he reached 65 years of age and was denied. An employed applicant/recipient who is blind and under 65 years of age is entitled to deductions from his earned income for the following expenses:
(i) Transportation expenses which include cane travel instruction, a guide dog and the dog’s upkeep expenses, and public transportation such as bus or cab fare. If the transportation is provided by private automobile, the deduction is the actual cost up to 15¢ per mile.
(ii) Job performance expenses such as, but not limited to, braille instruction, child care costs if not otherwise provided, equipment needed on the job, lunches, optical aids, uniforms and care of the uniforms, a wheelchair if necessary due to disability, translation of materials into braille and a reader.
(iii) Job improvement expenses which include, but are not limited to, stenotype instruction for a blind typist, key punch training and computer program training courses.
Authority The provisions of this § 181.132 issued under section 403(b) of the Public Welfare Code (62 P. S. § 403(b)).
Source The provisions of this § 181.132 adopted August 26, 1988, effective November 1, 1988, 18 Pa.B. 3949.
Notes of Decisions Workers’ Compensation Benefits
Pursuant to 55 Pa. Code § § 181.2, 181.101 and this section, workers’ compensation benefits and disability insurance were properly calculated as unearned income which must be counted for purposes of Medical Assistance eligibility. Goldstein v. Department of Public Welfare, 654 A.2d 295 (Pa. Cmwlth. 1995).
Cross References This section cited in 55 Pa. Code § 181.31 (relating to treatment of lump sum); 55 Pa. Code § 181.110 (relating to income deemed available from the spouse); and 55 Pa. Code § 181.131 (relating to deductions from unearned income).
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