OAR 461-145-0108: Dividends, Interest and Royalties

(1) For Medicare Savings Programs (see OAR 461-001-0000) and Oregon Supplemental Income Program Medical (OSIPM): (a) Unless otherwise stated in chapter 461 of the Oregon Administrative Rules, dividends and interest earned on mutual funds and securities, including stocks, bonds, educational savings bonds, and certificates of deposit (CDs), are excluded as income. Interest earned on other assets is treated according to the rule for that asset. (b) Royalties include compensation paid to the owner for the use of property, usually copyrighted material or natural resources, such as coal, oil, or natural gas, which normally are extracted from the ground. Except as provided in paragraphs (A) and (B) of this subsection, royalties are treated as unearned income. (A) For an individual who is actively working in the trade or business that generates the royalties: (i) Income is treated as self-employment if self-employment criteria are met (see OAR 461-145-0915 regarding self-employment criteria). (ii) Income that does not meet self-employment criteria is counted as earned income. (B) Royalties received by an individual in connection with any publication of the individual’s work are treated as earned income (see OAR 461-145-0130). (2) For all programs except Medicare Savings Programs and OSIPM: (a) Dividends are counted as unearned income. (b) Interest income is counted as unearned income. (c) Royalties are counted as unearned income, except that royalties are counted as earned income if the individual is actively engaged in the activity from which the royalties are accrued.