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A person’s gross income is used to determine eligibility and share of cost even when a garnishment or overpayment is being deducted from the income.
Exception:
The amount withheld to recover an overpayment is excluded when BOTH of the following apply:
The person received AHCCCS Medical Assistance the entire time the other income was being overpaid; and
The overpaid amount was included in the customer’s counted income.
When a customer reports that his or her income is being garnished, the customer is asked to contact the source of the garnishment. The source may be willing to reduce or waive the garnishment.
See Examples - Garnishments and Overpayments
One common type of garnishment is made by the IRS to collect a tax penalty. VA also places a garnishment to recover an overpayment. Both IRS and VA have processes for waiving or deferring garnishments.
See Lifting IRS Garnishments and VA Overpayments when a customer’s income is reduced for one of these reasons.
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Term |
Definition |
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Garnishment |
A process that directs money or property of a third party be seized to satisfy a debt owed by a debtor to a creditor. |
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Overpayment |
Payments of income made in excess of the sum due. |
This requirement applies to the following programs:
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Program |
Legal Authorities |
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ALTCS SSI-MAO MSP FTW |
20 CFR 416.1123 |
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Caretaker Relative Pregnant Woman Child Adult KidsCare |
42 CFR 435.603 R9-22-1421 |