75-02-02.1-38.3. Disregarded income for certain individuals subject to a MAGI-based methodology.

This section applies to an individual residing in the individual's own home or in a specialized facility, workers with disabilities coverage, children with disabilities coverage, and to the Medicare savings programs, but does not apply to an individual receiving nursing care services in a nursing facility, the state hospital, an institution for mental disease, a psychiatric residential treatment facility, an intermediate care facility for individuals with intellectual disabilities, or receiving swing-bed care in a hospital. The department shall allow the above-identified individuals subject to a MAGI-based methodology the following income disregards:

1. Nontaxable income other than: a. Nontaxable foreign earned income; b. Nontaxable interest; and c. The nontaxable portion of social security benefits.

2. Supplemental security income.

3. Veterans administration benefits other than retirement pensions, including: a. Disability benefits; b. Aid and attendance payments; c. Homebound benefits; and d. Reimbursements for unusual medical expenses.

4. Child support income.

5. Temporary assistance for needy families benefits and support services payments.

6. Workforce safety and insurance benefits.

7. Proceeds from life, accident, or health insurance.

8. Income tax credits and income tax refunds.

9. Gifts and loans.

10. Inheritances.

11. Child's income when allowed under the Patient Protection and Affordable Care Act [Pub L. 111-148; 42 U.S.C. 18001 et seq.] income methodologies.

12. Tribal general assistance payments.

13. Subsidized guardianship payments.

14. Educational scholarships, awards, and fellowship grants used for educational expenses that are not used for living expenses or other noneducational-related expenses.

15. Certain distributions, payments, and student financial assistance for American Indians and Alaska Natives if they were initially counted as taxable income.

16. Nonrecurring and recurring lump sum payments of disregarded earned or unearned income: a. Veterans administration aid and attendance payments; b. Veterans administration homebound benefits; c. Veterans administration reimbursements for unusual medical expenses; d. Veterans administration dependents indemnity compensation; e. Insurance settlements for destroyed exempt property; f. Death benefits;

g. Health or long-term care insurance payments; h. Life insurance proceeds; or i. Accident insurance proceeds.

17. Voluntary cash contributions from others.

18. Proceeds from a loan agreement, including reverse mortgages. If the individual lending the money receives interest, the interest received is income.

19. Hostile fire pay if an individual is on active military duty serving in a combat zone. The full amount of the individual's military pay must be excluded from taxable income.

20. Deposits to a joint checking account made by a nonhousehold member.

21. Monetary payments made by the department, another state, or tribal entities in connection with the North Dakota long-term care subsidy program, foster care, subsidized guardianship, or the subsidized adoption program.

22. Benefits received through the low-income home energy assistance program.

23. Refugee cash assistance or grant payments.

24. County general assistance that may be issued on an intermittent basis to cover emergency-type situations.

25. Payments from the child and adult food program for meals and snacks to licensed families who provide day care in their home.

26. Payments from the family subsidy program.

27. Income received as a housing allowance by programs sponsored by the United States department of housing and urban development and rent supplements or utility payments provided through the housing assistance program.

28. Money received by American Indians from the lease or sale of natural resources and rent or lease income, resulting from the exercise of federally protected rights on excluded American Indian property, which is considered an asset conversion and is therefore not considered as income. This includes distributions of per capita judgment funds or property earnings held in trust, for a tribe. This does not include local tribal funds that a tribe distributes to individuals on a per capita basis, but which have not been held in trust by the secretary of interior.

29. Income derived from submarginal lands, conveyed to Indian tribes and held in trust by the United States, as required by Pub. L. 94-114.

30. Compensation received by volunteers participating pursuant to the Domestic Volunteer Service Act of 1973 [Pub. L. 93-113; 42 U.S.C. 4950 et seq.].

31. Payments made to recipients under title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 [Pub. L. 91-646, 42 U.S.C. 4621 et seq.].

32. All income, allowances, and bonuses received as a result of participation in the job corps program.

33. Payments received for the repair or replacement of lost, damaged, or stolen assets.

34. Homestead tax credits.

35. Training funds received from vocational rehabilitation.

36. Training allowances of up to thirty dollars per week provided through a tribal native employment workers program or the job opportunities and basic skills training program.

37. Needs-based payments, support services, and relocation expenses provided through programs established under the Workforce Innovation and Opportunity Act [Pub. L. 113-128; 29 U.S.C. 701 et seq.] and through the job opportunities and basic skills program.

38. Training stipends provided to victims of domestic violence by private, charitable organizations for attending their educational programs.

39. Tax-exempt portions of payments made as a result of the Alaska Native Claims Settlement Act [Pub. L. 92-203].

40. Payments to certain United States citizens of Japanese ancestry, resident Japanese noncitizens and eligible Aleuts made under the Wartime Relocation of Civilians Reparations Act [Pub. L. 100-383; 50 U.S.C. App. 1989 et seq.].

41. Agent orange payments.

42. Crime victims reparation payments.

43. German reparation payments made to survivors of the holocaust and reparation payments made under sections 500 through 506 of the Austrian General Social Insurance Act.

44. Assistance received under the Disaster Relief and Emergency Assistance Act of 1974 [Pub. L. 93-288; 42 U.S.C. 5121 et seq.] or other federal statute, because of the presidentially declared major disaster, including disaster assistance unemployment compensation, and interest earned on that assistance. Comparable assistance received from a state or local government or from a disaster assistance organization is also excluded.

45. Allowances paid to children of Vietnam veterans who are born with spina bifida or to children of women Vietnam veterans who are born with certain covered birth defects.

46. Netherlands reparation payments based on Nazi, but not Japanese, persecution during World War II [Public L. 103-286; 42 U.S.C. 1437a, note].

47. Radiation Exposure Compensation Act [Public L. 101-426; 42 U.S.C. 2210, note].

48. The Medicare part B premium refunded by the social security administration.

49. Medicare part D premiums, copayments, and deductibles refunded by prescription drug plans.

50. Reimbursements from an employer, training agency, or other organization or past or future training, or volunteer-related expenses. Reimbursements must be specified for an identified expense other than normal living expenses and used for the purpose intended. Disregarded reimbursements include reimbursements for job or training related expenses such as travel, per diem, uniforms, and transportation to and from the job or training site and for reimbursements for out-of-pocket expenses of a volunteer incurred in the course of the volunteer's work.

51. The first two thousand dollars received by an individual over the age of nineteen as compensation for participation in a clinical trial for rare diseases or conditions meeting the requirements of section 1612(b)(26) of the Act [42 U.S.C. 1382a(b)(26)].

52. Monthly food coupons distributed to individuals over the age of fifty-five from the Sisseton-Wahpeton Oyate Lake Traverse Reservation food distribution program.

53. Payments of flat rate insurance like a hospital plan that pays a daily rate to the client for each day in the hospital.

54. Any withdrawal made from a 529 plan is excluded as income if the funds are used for the intended purposes. If the funds are withdrawn and not used for the qualified education expenses of the designated beneficiary, the withdrawn funds become taxable income and must be counted.

55. Payments distributed by the emergency rent assistance program.

56. Parent mentor compensation of a parent or guardian of a Medicaid or children's health insurance program eligible-child who is trained to assist families with children who have no health insurance coverage with respect to improving social determinants of the health of such child.

57. Alimony received if the alimony agreement is finalized or an existing alimony agreement if modified on or after January 1, 2019.

58. Discharged student loan debt, normally included in MAGI-based income, for tax years 2018 through 2025 in cases of discharged debt on account of the death or permanent and total disability of a student. Debt is not included as income of the borrower.

59. Disbursements from the people's fund and general disbursements to members of the Mandan, Hidatsa, Arikara Nation that come from natural resources royalties.

History: Effective January 1, 2014; amended effective January 1, 2026.