Michigan Administrative Code — Department of Treasury (tax rules)
Mich. Admin. Code R 206.4 — "Household income" defined
Rule 4. (1) "Income" means the sum of federa l adjusted gross income as defined
in the internal revenue code, 26 U.S.C. S62 plus:
(a) Benefits received from federal social security, including supplemental
security income (SSI), and railroad retirement benefits.
(b) Cash public assistance payments paid by a governmental unit.
(c) Unemployment insurance benefits.
(d) Worker's compensation payments whet her for temporary disability, permanent
disability, or death.
(e) Veteran's disability payments, pension benefits, or mustering out payments.
(f) Amounts received for loss of wages due to permanent disability.
(g) Amounts received as damages for personal injury or sickness.
(h) Amounts in excess of the claimant's cont ributions received from a pension
plan or annuity.
(i) Life insurance proceeds, except benefits from insurance on a spouse.
(j) Money received from a person not a member of the same household who is
legally obligated to support a member of the household.
(k) An inheritance, bequest, or devise, excluding an inheritance from a spouse.
(l) Educational benefits received under fede ral or state legislation with respect
to services in the military or naval forces of the United States.
(m) A scholarship or other educational grant.
(n) Income from an obligation issued by a state or its political subdivisions,
including this state.
(o) Gifts in cash or kind from nongovernmental sources exceeding $300.00.
(p) The portion of capital gains and divide nds excluded or deducted from federal
gross income.
(q) Death benefits paid by, or on behalf of, an employer.
(r) The portion of lump sum distributions from pension deducted from federal
gross income.
(s) Earned income from foreign sources excluded from federal gross income.
(t) Accumulation distributions received from a trust not previously included in
the claimant's adjusted gross income.
(2) "Household income" does not include:
(a) Surplus foods.
(b) Relief in kind by a governmental unit such as medicaid payments to a nursing
home or doctor, or rent paid, in whole or in pa rt, directly to the landlord. Chore service
payments are income to the provider but not to the person receiving the benefits.
(c) Governmental grants which must be used by the claimant to improve a
homestead.
(d) State and city income tax refunds, in cluding homestead property tax credits.
Farmland preservation tax credits shall be incl uded in federal adjusted gross income
and household income.
(e) Amounts deducted from social security or railroad retirement benefits for
medicare premiums.
(f) Amounts paid by an employer for life, health, or accident insurance.
(g) The first $300.00 in income from gambling, bingo, lottery, or prizes and
awards.
(3) Effective with the cale ndar year 1977, any health or accident insurance
premiums paid, in whole or in part, by the cl aimant, and not by an employer, for himself
and his family are deductible from gross income to arrive at household income.
Source: official text