Indiana Code Title 12. Human Services § 12-10-6-1

Sec. 1. (a) An individual who:

is eligible to receive assistance payments from the state if the individual would be eligible for assistance under the federal Supplemental Security Income program except for the fact that the individual is residing in a county home.

(b) The recipient shall be paid or allowed to retain from the recipient's income a monthly personal allowance.  The amount:

(c) In addition to the amount that may be retained as a personal allowance under this section, an individual is allowed to retain an amount equal to the individual's state and local income tax liability.  The amount that may be retained during a month may not exceed one-third ( 1/3 ) of the individual's state and local income tax liability for the calendar quarter in which the month occurs.  This amount is exempt from income eligibility consideration by the division.  The amount retained shall be used by the individual to pay state or local income taxes owed.

(d) In addition to the amounts that may be retained under subsections (b) and (c), an eligible individual may retain a Holocaust victim's settlement payment.  The payment is exempt from income eligibility consideration by the division.

(e) The personal allowance for one (1) month for an individual described in subsection (a) is the amount that an individual would be entitled to retain under subsection (b) plus an amount equal to one-half ( 1/2 ) of the remainder of: