Qualified Income Trust: Medicaid Income Cap Calculator

A qualified income trust (QIT), also called a Miller trust, is a special trust used in some Medicaid long-term-care eligibility cases when an applicant’s income exceeds a state’s limit. This calculator estimates the monthly income shortfall against a limit you enter; it does not determine Medicaid eligibility or establish whether a trust meets your state’s rules.

Formula

The estimated excess is the applicant’s monthly income minus the monthly limit, but not less than zero:

Excess = max(0, income − limit)

Income and limit are both entered in dollars per month. The percentage output is the excess divided by total monthly income, multiplied by 100. If income is zero, the percentage expression cannot be evaluated; enter a positive income to use that output. The calculator compares only the two figures supplied. It does not calculate countable income, trust deposits, permitted deductions, or eligibility.

Worked Example

Using the defaults, monthly income is $3,000 and the entered monthly limit is $2,800.

• Subtract the limit from income: $3,000 − $2,800 = $200.
• Apply the zero floor: max(0, $200) = $200 monthly excess.
• Calculate the excess as a share of income: $200 ÷ $3,000 × 100 = 6.67%.

This arithmetic illustrates the comparison only. It does not mean $200 is necessarily the amount a person must deposit in a QIT, or that the trust will qualify under applicable rules.

What a Qualified Income Trust Is

Medicaid is a public health coverage program with eligibility rules that can include income and asset tests. In certain states and circumstances, an applicant seeking coverage for long-term-care services may have income above a state-set threshold. A QIT is a formal arrangement that may allow income to be handled under a specific pathway for evaluating eligibility.

The term “Miller trust” comes from a court case associated with this type of trust. QIT rules are not uniform nationwide: states may differ in how a trust must be created, funded, administered, and reviewed. A trust’s name alone does not establish that it is valid for a particular application. This page gives general information, not legal, tax, or eligibility advice.

How the Income Comparison Works

Enter the applicant’s relevant monthly income and the applicable monthly income limit. Use figures on the same basis and in the same currency. The displayed excess is a simple difference, not a determination of the income Medicaid will count. Some income may be treated differently under program rules, and the appropriate limit or calculation can depend on the state, the type of coverage, and the applicant’s circumstances.

For example, if someone enters $3,000 in income and a $2,800 limit, the calculator shows $200 over the entered threshold. If the limit is higher than income, it reports zero excess rather than a negative amount. That is a mathematical convention, not a statement that the person meets every financial or nonfinancial requirement.

What the Calculator Cannot Determine

• Whether an applicant is eligible for Medicaid or a particular long-term-care service.
• Which income is countable, how income is classified, or which limit applies.
• Whether a particular trust document satisfies state requirements or must be prepared in a particular form.
• How much must be deposited, when deposits must occur, or how funds may be spent.
• Whether a spouse, other household member, assets, transfers, or other circumstances affect the analysis.

These points matter because a QIT is not simply a savings account for excess income. It generally involves a trust document and ongoing administration. Mistakes in setup, deposits, records, or permitted use of funds can create problems, and a calculator cannot review those facts.

Practical Checks Before Relying on a Result

Before using a number in planning, verify the exact income definition and limit with the relevant state Medicaid office or a qualified professional familiar with that state’s requirements. Ask for the applicable period and treatment of each income source; do not assume that a monthly gross amount is the same as countable income. Keep source documents, such as benefit statements or pay records, available for review.

If a QIT may be relevant, obtain state-specific guidance before creating or funding one. Questions to clarify include who may establish the trust, what the document must say, how income is deposited, who administers it, which expenses may be paid, what records are required, and what happens to remaining funds. The answers are governed by applicable rules and individual circumstances, not by the calculator’s difference.

Frequently Asked Questions

Is a qualified income trust the same as a Miller trust?
These names commonly refer to the same general type of trust used in some Medicaid income-limit situations. State terminology and requirements can vary.

Does having income over the limit automatically make someone ineligible?
Not necessarily. Some states provide a pathway involving a QIT, while eligibility also depends on the applicable rules and the person’s circumstances. The calculator cannot decide the outcome.

Is the amount shown as excess the amount to put into the trust?
No. It is only the difference between the two figures entered. Deposit amounts and procedures must be confirmed under the applicable state rules.

Can I use this calculator to find the Medicaid income limit?
No. You must obtain the relevant limit from the state Medicaid agency or another authoritative state-specific source, then enter it. The applicable figure and income definition may depend on the program and circumstances.

Does a QIT protect assets?
This calculator says nothing about asset treatment, and a QIT is not simply an asset-protection account. Ask a qualified professional about how the applicable rules treat assets and trust funds.

This result is an arithmetic estimate for education, not financial, legal, tax, or Medicaid eligibility advice; confirm the applicable requirements with the state Medicaid agency or a qualified professional.

Related

• United Auto Credit Payoff Calculator and Guide
• Plan B Payment Processing Explained
• Plan B Out-of-Pocket Cost: Price and Coverage

in inc | Applicant's monthly income | $ | 3000 | 0 | 100000000
in lim | Monthly income limit | $ | 2800 | 0 | 100000000
out exc | Monthly income over limit | $ | max(0, inc - lim) | 2
out pct | Income above limit | % | max(0, inc - lim) / inc * 100 | 2