The agency counts unearned income for Washington apple health (WAH) SSI-related medical programs as follows:

1. (1) The total amount of income benefits to which a person is entitled is treated as available unearned income even when the benefits are:

   1. (a) Reduced through the withholding of a portion of the benefit amount to repay a legal obligation;
   2. (b) Garnished to repay a debt, other legal obligation, or make any other payment such as payment of medicare premiums.

2. (2) Payments received on a loan:

   1. (a) Interest paid on the loan amount is considered unearned income; and
   2. (b) Payments on the loan principal are not considered income. However, any amounts retained on the first of the following month are considered a resource.
3. (3) Money borrowed by a person, which must be repaid, is not considered income. It is considered a loan. If the money received does not need to be repaid, it is considered a gift.

4. (4) Rental income received for the use of real or personal property, such as land, housing or machinery is considered unearned income. The countable portion of rental income received is the amount left after deducting necessary expenses of managing and maintaining the property paid in that month or carried over from a previous month. Necessary expenses are those such as:

   1. (a) Advertising for tenants;
   2. (b) Property taxes;
   3. (c) Property insurance;
   4. (d) Repairs and maintenance on the property; and

   5. (e) Interest and escrow portions of a mortgage.

      note: When a person is in the business of renting properties and actively works the business (over twenty hours per week), the income is counted as earned income.

[Statutory Authority: RCW 41.05.021 and Patient Protection and Affordable Care Act (Public Law 111-148), 42 C.F.R. §§ 431, 435, 457 and 45 C.F.R. § 155. WSR 14-07-059, § 182-512-0750, filed 3/14/14, effective 4/14/14. WSR 11-24-018, recodified as § 182-512-0750, filed 11/29/11, effective 12/1/11. Statutory Authority: RCW 74.04.050, 74.08.090. WSR 04-09-004, § 388-475-0750, filed 4/7/04, effective 6/1/04.]