Earned Income Only Example
Daryl lives in a State Operated Family Care home and is enrolled in the Medicaid Buy-In for Working People with Disabilities (MBI-WPD) program, which allows a higher income level. His wages from the local department store average about $2,049 per month. The statutory personal allowance for family care in 2023 is $175. Since Daryl has no unearned income, the general income disregard is applied to his wages. Because he works, he also gets the earned income exclusion applied to his earnings. The calculations for Daryl’s personal allowance are as follows:
| Statutory personal allowance | $ 175.00 |
| Add general income disregard (applied to wages) | $20.00 |
| Add the first $65 of gross wages (earned income exclusion) | $65.00 |
| Add ½ remaining gross wages (earned income exclusion) | $982.00 |
| Daryl’s total monthly personal allowance | $1242.00 |
Unearned and Earned Income
Robin lives in a State Operated IRA and earns between $200 and $300 per month. The amount of their SSI payment varies depending on their wages from two months prior. In September, Robin earned $215 in gross wages and received SSI of $849. The calculation for Robin’s September personal allowance is:
| Statutory personal allowance | $202.00 |
| Add general income disregard (applied to wages) | $20.00 |
| Add the first $65 of gross wages (earned income exclusion) | $65 |
| Add ½ remaining gross wages (earned income exclusion) | $65 |
| Tom’s total monthly personal allowance | $352 |
Because Robin’s personal allowance will change every month depending on their SSI and wages, the amount that they contribute from wages toward room and board/rent will also change every month.