Section 125-901-.03 - Household and Household IncomeA. 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; plus2. 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: (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; (j) Child support payments;(k) Gambling and lottery winnings;(l) Cash inheritances (except as provided by subsection C below);(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;(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; or6. Reimbursement of medical and legal expenses resulting from a lawsuit award.18- 125 C.M.R. ch. 901, § .03