[Code of Federal Regulations]
[Title 20, Volume 2]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR418]

[Page 1186-1187]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
               CHAPTER III--SOCIAL SECURITY ADMINISTRATION
 
PART 418_MEDICARE SUBSIDIES--Table of Contents
 
                   Subpart D_Medicare Part D Subsidies
 
Sec.  418.3320  How do we count your earned income?

    (a) Wages. We count your wages at the earliest of the following 
points: when you receive them, when they are credited to you, or when 
they are set aside for your use.
    (b) Net earnings from self-employment. We count net earnings from 
self-employment on a taxable year basis. If you have net losses from 
self-employment, we deduct them from your other earned income. We do not 
deduct the net losses from your unearned income.
    (c) Payments for services performed in a sheltered workshop or work 
activities center. We count payments you receive for services performed 
in a sheltered workshop or work activities center when you receive them 
or when they are set aside for your use.
    (d) In-kind earned income. We count the current market value of in-
kind earned income. For purposes of this part, we use the definition of 
current market value in Sec.  416.1101 of this chapter. If you receive 
an item that is not fully paid for and you are responsible for the 
unpaid balance, only the paid-up value is income to you (see example in 
Sec.  416.1123(c) of this chapter).
    (e) Certain honoraria and royalties. We count honoraria for services 
rendered and royalty payments that you receive in connection with any 
publication of your work. We will consider these payments as available 
to you when you receive them, when they are credited to your account, or 
when they are set aside for your use, whichever is earliest.
    (f) Period for which earned income is counted. For purposes of 
determining subsidy eligibility and, if eligible, whether you should 
receive a full or partial subsidy, we consider all of the countable 
earned income you receive (or expect to receive) during the year for 
which we are determining your eligibility for this subsidy. However, in 
the first year that you or your spouse apply for the subsidy, we 
consider all of the countable earned income you and your living-with 
spouse receive (or expect to receive) starting in the month for which we 
determine your eligibility based on your application for a subsidy 
through the end of the year for which we are determining your 
eligibility. If

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we count your income for only a portion of the year, the income limit 
for subsidy eligibility will be adjusted accordingly. For example, if we 
count your income for 6 consecutive months of the year (July through 
December), the income limit for subsidy eligibility will be half of the 
income limit applicable for the full year.