18-125 C.M.R. ch. 901, § .03 - Household and Household Income
A.
Household.A "household" is comprised of a claimant, spouse and any
individual who the claimant is entitled to claim as a dependent under Maine
income tax laws for the year for which relief is requested, whether or not the
individual is actually claimed as a dependent on a tax return. A spouse is not
considered a member of the household only if: (1) the spouse is living in a
homestead other than the homestead of the claimant; and (2) separate
applications are being filed in accordance with section .01(D) above.
B.
Household income; amounts included.
Annual household income includes the following income received by all
members of the household, including the claimant and the claimant's spouse and
any dependents:
1. The sum of Maine adjusted
gross income, defined as federal adjusted gross income modified by 36 M.R.S.
§ 5122, reported or required to be reported on all Maine income tax
returns filed by each member of the household; plus
2. Income (other than amounts excluded below)
that is received by each member of the household that is not
included in Maine adjusted gross income, including, but not limited to:
(a) Salaries and wages;
(b) Dividends and interest;
(c) Loss add-back amounts;
(d) Social Security benefits, railroad
retirement benefits, pensions, and distributions from ROTH IRAs;
(e) Contributions to pension, annuity or
retirement plans made on behalf of that member of the household;
(f) Cash public assistance;
(g) State supplemental income;
(h) Alimony payments;
(i) Capital gains;
(j) Child support payments;
(k) Gambling and lottery winnings;
(l) Cash inheritances (except as provided by
subsection C below);
(m) Jury duty
payments;
(n) Life insurance
proceeds (except as provided by subsection C below);
(o) Nontaxable lawsuit awards (except as
provided by subsection C below);
(p) Nontaxable strike benefits;
(q) Nontaxable employee contributions to a
Flexible Spending Arrangement;
(r)
Employer-paid benefits for a Dependent Care Assistance Program under Section
129 of the Internal Revenue Code;
(s) Prizes and awards;
(t) Rental income;
(u) Unemployment compensation;
(v) Worker's compensation and loss of time
insurance; and
(w) Any other income
received by each household member who did not file a Maine income tax return to
the extent the income should have been included in Maine adjusted gross income
if the household member had filed a Maine income tax return.
C.
Household
income; amounts excluded.Annual household income does not
include:
1. Rollovers of IRA, pension
or annuities into another IRA, pension or annuity, even if they were included
in Maine adjusted gross income;
2.
Refunds received from the Maine Residents Property Tax and Rent Refund
Program;
3. The first $5,000 in
proceeds of a life insurance policy, whether paid in a lump sum or in the form
of an annuity. An applicant who receives a lump-sum benefit should subtract
$5,000 from the amount received and report the remainder as income. For
example, an applicant who receives $25,000 in life insurance benefits would
include $20,000 in income on the application ($25,000 minus $5,000). If the
benefits are being paid in an annuity, the benefits received must be included
in income once the first $5,000 is exceeded. For example, an applicant who
receives $3,000 a year for 20 years would exclude the $3,000 received in the
first year and $2,000 received in the second year. The remaining $1,000
received in the second year and all benefits received in the succeeding years
must be included in income;
4.
Gifts from nongovernmental sources or surplus foods or other relief in-kind
that is supplied by a governmental agency;
5. Inheritance from a deceased spouse;
or
6. Reimbursement of medical and
legal expenses resulting from a lawsuit award.
Notes
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