INCOME 1810

User Manual: 1810

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Table of Contents

Income

1810.0000 Food Stamps ................................................................ 1

1810.0100 EARNED AND UNEARNED INCOME (FS) ............................................................. 1

1810.0102 Deductions from Gross Income (FS) ..................................................................... 1

1810.0103 Infrequent or Irregular Income (FS) ....................................................................... 1

1810.0107.01 Income Availability (FS) .................................................................................... 1

1810.0107.02 Income not Available (FS) ................................................................................ 2

1810.0107.03 Third-Party Payments for Non-SFU Members (FS) ......................................... 2

1810.0108 Available Income (FS) ........................................................................................... 2

1810.0112 Payments to Joint Owners (FS) ............................................................................ 3

1810.0114 Monies Legally Obligated to the AG (FS).............................................................. 3

1810.0116 Court Ordered Payments (FS) .............................................................................. 3

1810.0118 Vendor Payments (FS) .......................................................................................... 4

1810.0120 Charitable Donations (FS) ..................................................................................... 4

1810.0121 Verification of Excluded Income (FS) .................................................................... 4

1810.0200 EARNED INCOME (FS) ........................................................................................... 5

1810.0201 Wages Held by Employer (FS) .............................................................................. 5

1810.0203 Striker Income (FS) ............................................................................................... 5

1810.0204 Sale of Blood or Plasma (FS) ................................................................................ 5

1810.0205 BAH Payments (FS) .............................................................................................. 6

1810.0206 Tips (FS) ................................................................................................................ 6

1810.0207 Verification of Earned Income (FS) ....................................................................... 6

1810.0209 Collateral Contact Verification (FS) ....................................................................... 7

1810.0300 SELF-EMPLOYMENT (FS) ...................................................................................... 7

1810.0302 Allowable Costs of Self-Employment Income (FS) ............................................... 8

1810.0303 Costs not Allowed (FS).......................................................................................... 8

1810.0304.01 Income from a Boarder (FS) ............................................................................. 8

1810.0304.02 Income from Boarders (FS) .............................................................................. 8

1810.0304.03 Income/Adjustments - Individuals Provided Meals Only (FS) .......................... 9

1810.0304.04 Individuals Provided Rooms Only (FS) ............................................................ 9

1810.0305 Income from a Sales Contract as Self-Employment (FS) ..................................... 9

1810.0308 Child Care In Own Home (FS) .............................................................................. 9

1810.0310 Corporations (FS) ................................................................................................ 10

1810.0315 Verification of Self-Employment Income (FS) ..................................................... 10

1810.0400 WAGES RECEIVED FROM TRAINING PROGRAMS (FS) .................................. 10

1810.0402 WIA Income (FS) ................................................................................................. 10

1810.0403 Income from Indian WIA Program (FS) ............................................................... 11

1810.0500 REAL ESTATE INCOME (FS) ............................................................................... 11

1810.0502 Income from Rental Property (FS) ...................................................................... 11

1810.0600 IN-KIND BENEFITS (FS)........................................................................................ 11

1810.0601 In-Kind Benefits - Meals/Food (FS) ..................................................................... 11

1810.0601.01 Sharing Situations (FS) .................................................................................. 11

1810.0602 In-Kind Benefits for Disabled Veterans (FS) ....................................................... 11

1810.0603 Medical and Social Service Programs (FS) ........................................................ 12

1810.0700 SUPPORT (FS) ....................................................................................................... 12

1810.0701 Child Support (FS) ............................................................................................... 12

1810.0705 Alimony (FS) ........................................................................................................ 12

1810.0707 Verification of Support (FS) ................................................................................. 12

Table of Contents

Income

1810.0800 ASSISTANCE FROM GOVERNMENT AGENCIES (FS) ...................................... 13

1810.0802 Energy Assistance Payments (FS) ..................................................................... 13

1810.0805 Programs Administered by HUD/FmHA (FS) ...................................................... 13

1810.0811 Disaster Assistance Payments (FS) .................................................................... 13

1810.0813 Federal Relocation Assistance (FS) .................................................................... 14

1810.0816 Foster Care Payments (FS) ................................................................................ 14

1810.0819 Developmental Disability Payments (FS) ............................................................ 14

1810.0820 Supplemental Security Income (FS) ................................................................... 14

1810.0824 Assistance Payments Based on Need (FS) ........................................................ 14

1810.0826 Home Care for Elderly or Disabled Adult Payments (FS) ................................... 14

1810.0828 Family Subsistence Supplemental Allowance (FS) ............................................ 14

1810.0830 Overpayments - Means-Tested Programs (FS) .................................................. 15

1810.0831 Overpayments - Non-Means-Tested Programs (FS) .......................................... 15

1810.0900 BENEFITS (FS) ...................................................................................................... 15

1810.0901 Verification of Unearned Income (FS) ................................................................. 15

1810.0904.01 SSA Income (FS) ............................................................................................ 15

1810.0905 Annuities, Pensions and Retirement Income (FS) .............................................. 15

1810.0906 Veterans Benefits and Payments (FS) ................................................................ 16

1810.0908 Workers’ Compensation Payments (FS) ............................................................. 16

1810.0909 Railroad Retirement Payments (FS) ................................................................... 16

1810.0910 Unemployment Compensation (FS) .................................................................... 16

1810.0912 Severance Pay (FS) ............................................................................................ 16

1810.0914 Energy Employees Occupational Illness Compensation Program (FS) ............. 17

1810.0915 Domestic Volunteer Services Act (FS) ................................................................ 17

1810.0916 Older Americans Act (FS) ................................................................................... 17

1810.0917 Indian Tribe/Alaskan Native (FS) ........................................................................ 17

1810.0918 German/Japanese/Aleutian Payments (FS) ....................................................... 19

1810.0920 Crisis Intervention Program (FS) ......................................................................... 19

1810.0921 Cranston-Gonzales National Affordable Housing Act (FS) ................................. 19

1810.0922 Crime Victim Compensation Program (FS) ......................................................... 19

1810.0924 Earned Income Tax Credit and Child Tax Credit (FS) ........................................ 19

1810.0925 Radiation Exposure Compensation Act (FS) ...................................................... 19

1810.0926 Plan for Achieving Self-Support (FS) .................................................................. 19

1810.0928 Child Nutrition Act of 1966 (FS) .......................................................................... 19

1810.0930 "At-Risk" Block Grant Child Care Payments (FS) ............................................... 20

1810.0931 National and Community Services Trust (FS) ..................................................... 20

1810.1000 DIVIDENDS INTEREST AND ROYALTIES (FS) ................................................... 20

1810.1012 Interest in Individual Development Accounts (FS) .............................................. 20

1810.1100 REIMBURSEMENTS (FS) ...................................................................................... 21

1810.1200 STUDENT LOANS, GRANTS, AND SCHOLARSHIPS (FS) ................................ 21

1810.1300 INCOME FROM OTHER SOURCES (FS) ............................................................. 21

1810.1301 Loans (FS) ........................................................................................................... 21

1810.1302 Contributions (FS) ............................................................................................... 22

1810.1303 Trusts (FS) .......................................................................................................... 22

1810.1304 Gifts (FS) ............................................................................................................. 22

1810.1305 Prizes and Awards (FS) ...................................................................................... 23

1820.0000 Temporary Cash Assistance .................................... 24

1820.0001 Definition of Income (TCA) .................................................................................. 24

Table of Contents

Income

iii

1820.0100 INCOME CONCEPTS (TCA) .................................................................................. 24

1820.0101 Earned and Unearned Income (TCA) ................................................................. 24

1820.0102 Deductions from Gross Income (TCA) ................................................................ 25

1820.0103 Infrequent or Irregular Income (TCA) .................................................................. 25

1820.0106 Availability of Income (TCA) ................................................................................ 25

1820.0107 Unavailable Income (TCA) .................................................................................. 25

1820.0108.01 Available Income (TCA).................................................................................. 26

1820.0108.02 Government Income Excluded (TCA) ............................................................ 26

1820.0108.03 Joint Bank Accounts (TCA) ............................................................................ 26

1820.0112 Payments to Joint Owners (TCA) ........................................................................ 26

1820.0116 Court Ordered Payments (TCA) .......................................................................... 27

1820.0117 Deeming of Income (TCA) .................................................................................. 27

1820.0118 Vendor Payments (TCA) ..................................................................................... 27

1820.0119 Examples of Vendor Payments (TCA) ................................................................ 27

1820.0200 EARNED INCOME (TCA) ...................................................................................... 28

1820.0204 Sale of Blood or Plasma (TCA) ........................................................................... 28

1820.0206 Tips (TCA) ........................................................................................................... 28

1820.0207 Verification of Earned Income (TCA) .................................................................. 28

1820.0209.01 Verification of Income (TCA) .......................................................................... 29

1820.0209.02 Collateral Contact Verification (TCA) ............................................................. 30

1820.0209.04 Verification of a Child's Wages (TCA) ............................................................ 30

1820.0300 SELF-EMPLOYMENT (TCA) ................................................................................. 30

1820.0302 Allowable Costs of Self-Employment Income (TCA) ........................................... 30

1820.0303 Costs not Allowed (TCA) ..................................................................................... 31

1820.0306 Earned Income from Farming (TCA) ................................................................... 31

1820.0307 Allowable Costs (TCA) ........................................................................................ 31

1820.0308 Child Care in Own Home (TCA) .......................................................................... 32

1820.0309 Income for Payment for Room and Board (TCA) ................................................ 32

1820.0310 Corporations (TCA) ............................................................................................. 32

1820.0315 Verification of Self-Employment Income (TCA) .................................................. 32

1820.0400 WAGES RECEIVED FROM TRAINING PROGRAMS (TCA) ................................ 33

1820.0401 Workforce Investment Act (TCA) ........................................................................ 33

1820.0404 WIA Income for Adults (TCA) .............................................................................. 33

1820.0405 WIA Income for Children (TCA) .......................................................................... 33

1820.0406 Verification of WIA Income (TCA) ....................................................................... 33

1820.0500 REAL ESTATE INCOME (TCA) ............................................................................. 33

1820.0503.01 Rental Income (TCA) ...................................................................................... 34

1820.0503.02 Computation of Rental Property Income (TCA) ............................................. 34

1820.0503.03 Property Sublet by the Individual (TCA) ......................................................... 34

1820.0600 IN-KIND BENEFITS (TCA) ..................................................................................... 34

1820.0601 In-Kind Benefits - Meals/Food (TCA) .................................................................. 35

1820.0602 In-Kind Benefits for Disabled Veterans (TCA) .................................................... 35

1820.0603 Medical and Social Service Programs (TCA) ...................................................... 35

1820.0700 SUPPORT (TCA) .................................................................................................... 35

1820.0702 Child Support (TCA) ............................................................................................ 35

1820.0705 Alimony (TCA) ..................................................................................................... 36

1820.0707 Verification of Support (TCA) .............................................................................. 36

1820.0800 ASSISTANCE FROM GOVERNMENT AGENCIES (TCA) ................................... 36

1820.0801 Energy Assistance (TCA) .................................................................................... 36

Table of Contents

Income

1820.0803.01 LIHEAP Payments (TCA) ............................................................................... 36

1820.0803.02 HEA Payments (TCA)..................................................................................... 36

1820.0805 Programs Administered by HUD/FmHA (TCA) ................................................... 36

1820.0806 HUD/FmHA Utility Payments (TCA) .................................................................... 37

1820.0807 Public Housing (TCA) .......................................................................................... 37

1820.0809 Vocational Rehabilitation (TCA) .......................................................................... 37

1820.0810 Limit on Rehabilitation Assistance (TCA) ............................................................ 37

1820.0811 Disaster Assistance Payments (TCA) ................................................................. 37

1820.0813 Federal Relocation Assistance (TCA) ................................................................. 38

1820.0816 Foster Care Payments (TCA) .............................................................................. 38

1820.0818 Foster Care Teen Parent with Infant (TCA) ........................................................ 38

1820.0819 Developmental Disability Payments (TCA) ......................................................... 38

1820.0820 Supplemental Security Income (TCA) ................................................................. 38

1820.0821 EFAHP Payments (TCA) ..................................................................................... 38

1820.0824 Assistance Payments Based on Need (TCA) ..................................................... 38

1820.0826 Home Care for Elderly or Disabled Adult Payments (TCA) ................................ 39

1820.0827 Assistance Payments (TCA) ............................................................................... 39

1820.0828 Family Subsistence Supplemental Allowance (TCA) .......................................... 39

1820.0829 Overpayments - Other Assistance Programs (TCA) ........................................... 39

1820.0900 BENEFITS (TCA) ................................................................................................... 39

1820.0901 Verification of Unearned Income (TCA) .............................................................. 39

1820.0903 Gross Benefits (TCA) .......................................................................................... 40

1820.0904.01 SSA Income (TCA) ......................................................................................... 40

1820.0904.02 Student Social Security Benefits (TCA).......................................................... 40

1820.0905 Annuities, Pensions and Retirement Income (TCA) ........................................... 40

1820.0906 Veterans Benefits and Payments (TCA) ............................................................. 40

1820.0908 Workers' Compensation Payments (TCA) .......................................................... 41

1820.0909 Railroad Retirement Payments (TCA) ................................................................. 41

1820.0910 Unemployment Compensation (TCA) ................................................................. 41

1820.0912 Severance Pay (TCA) ......................................................................................... 41

1820.0914 Energy Employees Occupational Illness Compensation Program (TCA) ........... 41

1820.0915 Domestic Volunteer Services Act (TCA) ............................................................. 41

1820.0917 Indian Tribe/Alaskan Native (TCA) ...................................................................... 42

1820.0918 German/Japanese/Aleutian Payments (TCA) ..................................................... 42

1820.0922 Crime Victim Compensation Program (TCA) ...................................................... 42

1820.0923 Experimental Housing Allowance (TCA) ............................................................. 42

1820.0924 Earned Income Tax Credit and Child Tax Credit (TCA) ...................................... 42

1820.0925 Radiation Exposure Compensation Act (TCA) .................................................... 42

1820.0927 Maine Indian Claims Settlement Act (TCA)......................................................... 42

1820.0931 National and Community Services Trust (TCA) .................................................. 43

1820.1000 DIVIDENDS AND INTEREST (TCA) ...................................................................... 43

1820.1006 Mortgages (TCA) ................................................................................................. 43

1820.1012 Interest in Individual Development Accounts (TCA) ........................................... 44

1820.1100 REIMBURSEMENTS (TCA) ................................................................................... 44

1820.1200 STUDENT LOANS, GRANTS, AND SCHOLARSHIPS (TCA).............................. 44

1820.1206 Verification of Educational Income (TCA) ........................................................... 45

1820.1300 INCOME FROM OTHER SOURCES (TCA)........................................................... 45

1820.1301 Loans (TCA) ........................................................................................................ 45

1820.1302 Contributions (TCA)............................................................................................. 45

1820.1303 Trusts (TCA) ........................................................................................................ 46

1820.1304 Gifts (TCA) .......................................................................................................... 46

Table of Contents

Income

1820.1305 Prizes and Awards (TCA) .................................................................................... 46

Chapter: 1800 Income Program: FS

1810.0000 Food Stamps

Income is defined as funds received from any source such as wages, benefits, contributions, and

rentals. Income means all monies, earned as well as unearned, from any source.

1810.0100 EARNED AND UNEARNED INCOME (FS)

Income is classified into two categories for budgeting purposes: earned income and unearned

income. All non-exempt income must be verified at application and recertification unless

otherwise specified.

Earned income is the receipt of wages, salary, commission, or profit from an individual's

performance of work or services, or a self-employment enterprise.

Unearned income is income for which there is no performance of work or services. Unearned

income may include:

1. SSA, SSD, and SSI and other disability payments;

2. retirement, annuities, pensions, veterans benefits, and other regular payments;

3. unemployment/workers' compensation;

4. alimony, support payments;

5. dividends, interest, royalties;

6. proceeds of any insurance policies;

7. prizes, awards; and

8. gifts, inheritances, and contributions.

1810.0102 Deductions from Gross Income (FS)

Some deductions withheld from gross income must be included. Examples of these deductions

include:

1. premiums for Supplemental Medical Insurance (SMI/Medicare) from a Title II (Social

Security) benefit,

2. premiums for health insurance or hospitalization,

3. premiums for life insurance,

4. federal and state income taxes,

5. Social Security taxes,

6. optional deductions, and

7. a garnished or seized payment.

1810.0103 Infrequent or Irregular Income (FS)

Infrequent or irregular earned income not in excess of $30 in a calendar quarter is excluded when

receipt cannot be anticipated. Infrequent or irregular unearned income not in excess of $60 in a

calendar quarter is excluded when receipt can not be anticipated. This includes one-time gifts of

cash for special occasions such as birthdays or Christmas from someone whose income is not

included in the SFU. If the income is anticipated on a regular basis it will be included regardless

of the amount.

1810.0107.01 Income Availability (FS)

Income of a non-SFU member(s) is not considered available to the SFU. This includes payments

made on behalf of the SFU by a non-SFU member. However, cash payments received by the

SFU from a non-SFU individual are considered SFU income.

Chapter: 1800 Income Program: FS

1810.0107.02 Income not Available (FS)

Some income withheld from non means-tested assistance payments, earned income, or other

income sources which are received from any income sources which are voluntarily or involuntarily

returned to repay a prior overpayment, will be considered unavailable to the household to the

extent the money is utilized to repay an overpayment of benefits received. Income "monies" not

available are:

1. Social Security retirement reduced to cover an overpayment.

2. Supplemental Security Income reduced due to cover an overpayment.

3. TCA if reduced due to an overpayment because of an agency error.

4. Payments that have already been included as income, or would have been included had

the assistance group been receiving food stamps.

Income is considered available and is included if it is:

1. Withheld by federal means-tested program (such as Temporary Cash Assistance) due to

failure to comply with program requirements.

2. Due to wage garnishment.

1810.0107.03 Third-Party Payments for Non-SFU Members (FS)

Monies received and used for the care and maintenance of a third party beneficiary who is not an

SFU member is excluded income. When a single payment is received for SFU and non-SFU

members, only the portion intended and used for the care and maintenance of the non-SFU

member will be excluded.

If the Non-SFU member's portion of the payment cannot be readily identified, the eligibility

specialist will:

1. prorate the payment among all intended beneficiaries and determine the non-SFU

member's portion,

2. determine the portion actually used for the non-SFU member, then

3. exclude the lesser of the two amounts.

1810.0108 Available Income (FS)

Income must be available to meet the SFU's needs to be included. Generally, income is

considered available when it is actually received and/or when the individual has the legal ability to

access the monies.

Exceptions to the policy above:

Occasionally, a regular monthly payment (e.g., Title II or VA) is received in a month other than the

month of normal receipt. As long as there is no interruption in the regular payment schedule,

consider the funds to be income in the normal month of receipt. Examples of this situation are:

1. Advance Dated Checks - When a payor advance dates a check because the regular

payment date falls on a weekend or holiday, there is no intent to change the normal

delivery date. Whenever such an advance dated check goes to a bank by direct deposit,

the funds may be posted to the account before or after the month they are payable.

2. Electronic Funds Transfer - When an individual's money goes to a bank by direct deposit,

the funds may be posted to the account before or after the month they are payable.

Whenever this occurs, treat the electronically transferred funds as income in the month of

normal receipt.

Chapter: 1800 Income Program: FS

3. Income may be unavailable due to legal restrictions or factors beyond the control of the

individual. In both these situations, the eligibility specialist must request supporting

evidence and make an independent assessment regarding availability based on the

evidence presented. Additional guidance may be requested from the Region or Circuit

Program Office, Headquarters, or Circuit Legal Counsel.

1810.0112 Payments to Joint Owners (FS)

Payment to joint owners is a payment made to two or more individuals. A document, such as a

single or combined Social Security check for a couple or to a parent on behalf of two or more

children, indicating the amount due each owner is generally sufficient verification of ownership.

In the absence of specific documentation, divide the income minus allowable expenses by the

number of beneficiaries to determine the income amount for each individual.

1810.0114 Monies Legally Obligated to the AG (FS)

Monies legally obligated (owed) to the assistance group that are diverted by the payor to a third

party for an assistance group expense are included as income. They are not excluded vendor

payments. The distinction is that the person or organization paying expenses on behalf of an

assistance group uses funds that are legally obligated (owed) to the assistance group.

Examples of monies that are legally obligated and included are:

1. wages earned by an assistance group member that are diverted to pay a third party on

the assistance group's behalf including wages diverted for legal reasons such as wage

garnishment for child support or IRS;

2. all or part of a Temporary Cash Assistance benefit normally provided to the assistance

group that is diverted to a third party or protective payee;

3. court ordered support payments, alimony or other legal binding agreements that are

diverted by the payor of the funds to a third party, for an AG expense; and

4. funds owed to an assistance group by an employer, agency, or former spouse that are

diverted to a third party to pay for an assistance group expense.

The monies are not legally obligated when the person or organization provides housing or pays

assistance group expense(s) exclusively from their own resources or funds. This type of payment

is an example of an “excluded vendor payment”.

1810.0116 Court Ordered Payments (FS)

Money deducted or diverted from court ordered support, alimony, or other legally binding

agreement and paid to a third party for an assistance group expense will be included as income.

However, if the payment is ordered by the court to go directly to the third party rather than the

assistance group, the payment will be excluded as a vendor payment.

Example: In the court order, the spouse was ordered to pay $200 child support each month. He

was not ordered to pay the mortgage payment. If the spouse pays the mortgage directly to the

mortgage company, in addition to his regular court ordered child support payment, the mortgage

payment is considered a vendor payment and is excluded as income. If the spouse took the

$200 he was to pay in child support and paid the mortgage payment instead, then the child

support income would continue to count as income to his spouse since the $200 was court

ordered support and this income was diverted to pay the mortgage.

Chapter: 1800 Income Program: FS

1810.0118 Vendor Payments (FS)

A vendor payment is a money payment made for SFU expenses by an individual or organization

outside the SFU from funds not legally owed to the SFU. Vendor payments are excluded as

income and any expense which is entirely paid by a vendor payment is not an allowable

deduction from income.

The monies are not a vendor payment when the person or organization provides housing or pays

assistance group expense(s) exclusively from their own assets or funds.

Examples of vendor payments are:

1. rent payments made directly to the landlord by a third party;

2. rent or mortgage payments made to landlords or mortgagees by DCF, Housing and

Urban Development (HUD), or by state or local housing authorities;

3. payments made directly to the utility or phone company by a third party;

4. payments by a government agency to a child care facility to provide care for an

assistance group member;

5. car payments made by disability insurance on behalf of an assistance group member due

to accident or illness when it is specified as a part of the insurance policy;

6. payments made on behalf of the assistance group directly to a third party under a court

order or legal agreement;

7. payments for an expense made by an employer, agency, former spouse, or other person

to a third party from funds not legally owed to the assistance group; or

8. Any payments to the SFU by a non-SFU member(s) are not vendor payments regardless

of the purpose or intent of the payment.

1810.0120 Charitable Donations (FS)

An income exclusion of no more than $300 per quarter may be granted when cash donations,

based on need, are received from one or more private nonprofit charitable organizations.

Example: An assistance group received $100 in July from a private, nonprofit charitable

organization, and another $100 in August from the same organization. In September it received

$150 from a different organization (determined as nonprofit). The AG would be entitled to $100 in

July, August, and September. The $150 received in September puts the assistance group over

the $300 exclusion for that quarter. Therefore, $50 of the donation would count as unearned

income.

1810.0121 Verification of Excluded Income (FS)

The eligibility specialist must verify excluded income prior to eligibility determination only if it is

questionable and affects an assistance group's eligibility or benefit level. To be considered

questionable, the information on the application must be inconsistent with:

1. statements made by the applicant,

2. other information on a current or previous application, or

3. other information received by DCF.

Chapter: 1800 Income Program: FS

1810.0200 EARNED INCOME (FS)

Earned income includes all gross (before taxes or any other deductions) wages and salaries from

performance of work (including wages deferred that are beyond the individual's control). Wages

are included as income at the time they are received rather than when earned.

Wages are considered earned income even when withheld at the request of the employee or

provided as an income advance on income expected to be earned at a future date. Advances are

different from loans since they are paid in exchange for anticipated services or labor.

An individual is considered employed when engaged in a business, occupation or service for

cash paid by another person, group of persons, or company. Wages or paid salaries received

after employment has ended are considered earned income such as payment for accrued leave.

Employer-provided sick pay is earned income as long as the individual plans to return to work

after recovering and is still considered an employee. Sick pay is a continuation of salary with

normal payroll deductions and is not to be confused with benefits, such as Workers'

Compensation, that are considered unearned rather than earned income.

Note: Severance pay is considered unearned income. (Refer to 1810.0912)

1810.0201 Wages Held by Employer (FS)

Wages (even if illegally) held by the employer are not considered as income until the wages are

received.

Exceptions:

1. The assistance group (AG) anticipates an advance, or

2. The AG is expected to receive wages previously withheld that were not previously

counted.

Advances on wages may count as income in the month received or may be averaged over the

certification period in which received, if reasonably anticipated.

Example: A school employee has a base salary of $10.80 hourly. The union policy states that

the individual must receive paid vacation and holidays. The employer withholds part of the base

salary (regular pay) to be paid at a future date when the individual is on vacation or holiday.

1810.0203 Striker Income (FS)

The striker's income before the strike is compared to the striker's benefits. The larger of the two

amounts is included as income. If pre-strike earnings are included, earnings deductions shall be

allowed. If strike benefits are included this would be counted as unearned income.

1810.0204 Sale of Blood or Plasma (FS)

Income derived from the sale of blood or plasma is included as earned income.

Chapter: 1800 Income Program: FS

1810.0205 BAH Payments (FS)

Basic allowance for quarter (BAQ) and basic allowance for subsistence (BAS) have been

consolidated into one payment called basic allowance for housing (BAH).

Payments received by members of the military, basic allowance for housing (BAH) is considered

earned income if included on a Leave and Earnings Statement (LES). Payments included on an

LES are made directly to the individual.

The eligibility specialist should question the possible receipt of National Guard/Reserves and

other military service income.

1810.0206 Tips (FS)

The amount of tips reported by the employee will be included as income. Many times an

employer will include on the pay stub of the employee an amount the employer must report to the

IRS for tax purposes. This is an allocated amount and cannot be interpreted as the amount

actually earned or received by the employee. The tip amount reported by the employee can be

accepted unless questioned.

In some instances, the employee reports actual tips to the employer. In this instance, the

employer can verify actual tips earned. The individual should keep records on a daily basis if the

tips are not reported to the employer, so this information can be used for verification.

Examples of individuals who earn tips are:

1. Waiter/Waitress

2. Bartender

3. Hairdresser

4. Bell man

5. Delivery persons

6. Grocery attendant

1810.0207 Verification of Earned Income (FS)

All non-exempt earned income must be verified at application and recertification unless otherwise

specified.

All non-exempt earned income must be verified by the employer. Information that must be

verified includes:

1. the first and last dates of employment (when income begins or ends),

2. the first and last day of pay,

3. gross income including overtime and tips,

4. frequency of payment,

5. the day of the week payment is received, and

6. the number of hours and days employed.

Note: Verification of terminated income from the employer, including the amount and date of last

pay, is only required for an applicant when income is received in the month of application. The

individual’s statement is acceptable for income terminating prior to the month of application.

Acceptable forms of verification are:

1. 1099 forms, W-2 forms and income tax returns, including all schedules, for self-employed

individuals,

2. wage receipts,

3. wage statements,

Chapter: 1800 Income Program: FS

4. pay stubs,

5. employment verification form or written statements containing the required information,

6. collateral contact with employer, and

7. work calendar (for tips and daily cash payments).

Any document used to verify income must be copied and retained in the case record. All

documents must be completed and signed by the appropriate individuals (for example, the

employer, the recipient). However, the individual’s statement that his income exceeds the income

standard is sufficient to deny or close the assistance group.

When reviewing the income information, the eligibility specialist must make certain that

deductions are included in the gross earned income amount. Deductions from income that may

appear include:

1. flex benefit plans,

2. savings accounts,

3. Christmas clubs,

4. stocks,

5. IRAs,

6. deferred compensation,

7. bonds,

8. mortgage/car payments,

9. insurance, and

10. SSA FICA withholding.

The eligibility specialist will determine the income amount by the best available information such

as a collateral contact or previous pay stubs for similar work, if and when:

1. documentation is unavailable due to a lack of cooperation by the person or organization

providing the income, or other factors beyond the individual's control; or

2. no other sources of verification are available.

1810.0209 Collateral Contact Verification (FS)

Verification must be obtained regarding the source and amount of income received. When other

sources of verification are unavailable, the following information provided by a collateral contact

must be recorded:

1. date verification is received,

2. name and title of person providing verification,

3. source of the income or benefit,

4. date(s) received and amount,

5. benefit claim or identification number for each individual receiving a benefit (ex. SSI,

SSDI, VA), and

6. the reason the individual is eligible for the benefit if receiving a benefit (ex. SSI, SSDI,

VA).

1810.0300 SELF-EMPLOYMENT (FS)

An individual who owns a business or otherwise engages in a private enterprise is considered

self-employed. Income derived from self-employment, less allowable expenses, is considered

earned income.

Self-employment wages include the total gain from the sale of any capital goods or equipment in

addition to profit and net income.

Chapter: 1800 Income Program: FS

1810.0302 Allowable Costs of Self-Employment Income (FS)

The assistance group is required to keep a record of the expenses incurred in the production of

self-employment income.

Examples of allowable costs of producing self-employment income are:

1. identifiable costs of labor (salaries, employer's share of Social Security, insurance, etc.);

2. stock, raw materials, seed and fertilizer, and feed for livestock;

3. rent and cost of building maintenance;

4. business telephone costs;

5. costs of operating a motor vehicle when required in connection with the operation of the

business;

6. the principal and interest paid on loans to purchase income producing real estate and

capital assets, equipment, machinery, and other durable goods;

7. insurance premiums and taxes paid on income producing property;

8. cost of meals and equipment for children for whom child care is provided in the home;

and

9. travel and lodging, but not meals, away from home.

1810.0303 Costs not Allowed (FS)

The following expenses are not allowed as a cost of producing self-employment income:

1. net losses from previous periods,

2. federal, state and local income taxes, money set aside for retirement purposes and other

work related personal expenses (such as transportation to and from work) for any SFU

member, as these expenses are accounted for by the 20% earned income adjustment,

and

3. depreciation.

Note: Business equipment and supplies are excluded as assets in FS.

1810.0304.01 Income from a Boarder (FS)

The income from a boarder includes all direct payments to the assistance group for room and

meals, including contributions to the assistance group's shelter expenses. Shelter expenses paid

directly by a boarder to someone outside of the assistance group (third party payments) are not

counted as income to the assistance group.

The income of an assistance group owning and operating a commercial boarding house must be

handled as income from self-employment.

The income of an assistance group that does not own and operate a commercial boarding house

is subject to special income calculations.

1810.0304.02 Income from Boarders (FS)

After determining income received from the boarder(s), the eligibility specialist must exclude that

portion of the boarder payment which is a cost of doing business. The cost of doing business, not

to exceed the payment from the boarder(s) for lodging and meals, includes either of the following:

1. The maximum monthly food stamp benefit for an assistance group size equal to the

number of boarders. For example, there are three boarders, and each is a separate

assistance group. The exclusion is the maximum benefit for a three person assistance

group and not three times the maximum benefit for one individual.

Chapter: 1800 Income Program: FS

2. The actual documented cost of providing room and meals, if the actual costs exceed the

maximum benefit for an assistance group size equal to the number of boarders. If actual

costs are used, only separate and identifiable costs of providing room and board to the

boarder(s) are excluded. The amount remaining would be considered earned income.

1810.0304.03 Income/Adjustments - Individuals Provided Meals Only (FS)

An individual who only purchases meals does not meet the definition of a boarder. This individual

is considered a diner. The assistance group furnishing the meals may be allowed the cost of

doing business, not to exceed the payment received for meals. This income, less the cost of

doing business, is considered earned income. The cost of doing business would be the actual

costs of providing meals. If this information is not available, the eligibility specialist may exclude

from the payment for meals the maximum allotment for an assistance group size equal to the

number of diners.

1810.0304.04 Individuals Provided Rooms Only (FS)

The individual for whom the assistance group furnishes lodging only is called a roomer and is not

subject to the boarder provisions. Any payment made to the assistance group for lodging is

counted as earned income. Costs of doing business, such as charges for cleaning linens and

providing soap may be excluded if receipts are provided. Since no meals are provided, no

deduction may be allowed for food.

1810.0305 Income from a Sales Contract as Self-Employment (FS)

In a sales contract, the assistance group receives a monthly payment for the sale of property

such as real estate, equipment, vehicle, etc. and is also required to make a monthly installment

payment on that property. The monthly payment received would be considered unearned

income; however, the cost of doing business may also be deducted since it is considered a self-

employment enterprise. Typical expenses that may be deducted from the income include taxes,

insurance, broker fees, or interest on the regular mortgage.

Example: A woman sold her house and receives a monthly payment of $390 from the buyer, but

the original mortgage is still in her name. She is required to pay $187 to a bank for the original

mortgage payment. The seller of the house would have a monthly unearned investment income

of $390 minus that portion of the monthly mortgage payment that pays for interest on the original

cost of the house. Further costs of doing business that may also be subtracted are payments for

taxes and insurance or broker fees.

1810.0308 Child Care In Own Home (FS)

Assistance groups deriving income from child care in their own home may elect one of the

following methods of determining the cost of meals provided to the children:

1. the actual documented cost of meals,

2. a standard per day amount based on estimated per meal costs, or

3. current reimbursement amounts used in the Child and Adult Care Food Program, $0.92

for breakfast, $1.69 for lunch and/or dinner, and $0.50 for supplements.

Chapter: 1800 Income Program: FS

1810.0310 Corporations (FS)

Verification is required to establish that the individual has actually legally incorporated a business.

The business should be registered clearly in the name of the corporation. Acceptable forms of

verification include the articles of incorporation and income tax returns.

Income of a corporation, including a closely held corporation (with one or only a few

shareholders), is not counted unless the income is distributed to the individual. Distributions

include salaries or corporate checks which are made out for cash or for SFU expenses. These

distributions are considered earned income to the SFU.

An exception to this policy is an "S" corporation. "S" corporations are a subset of closely held

corporations and the income is generally reported to the Internal Revenue Service together with

the SFU's other income. The income of an "S" corporation is treated as self-employment income

and annualized. An “S” corporation may be identified by the individual’s statement or income tax

return.

1810.0315 Verification of Self-Employment Income (FS)

Self-employed individuals must verify earned income at application and recertification. In

addition, these individuals must make all business records available to the eligibility specialist.

Examples of business records include documentation on:

1. income tax records necessary to determine gross income and deductible expenses,

2. purchases,

3. sales,

4. salaries,

5. capital improvements,

6. utility, transportation, and other operating costs, and

7. work calendars for tips and recording pay as received.

If the individual claims to have no business records, or that the records are inaccurate, discuss

with the individual their most recent representative income. The eligibility specialist should then

use the best information available and record this in CLRC.

1810.0400 WAGES RECEIVED FROM TRAINING PROGRAMS (FS)

When the individual participates in a work or on-the-job training program that involves work for

payment, the payment is included as income. Training allowances from Vocational and

Rehabilitative Programs recognized by a government agency are also included income, unless

excludable as a reimbursement. For example, Regional Workforce Board or Workforce

Investment Act (WIA) Program payments or allowances are included income unless provided as

a reimbursement or otherwise identified as excluded income (see passages 1810.0402 and

1810.0403).

1810.0402 WIA Income (FS)

Payments received by an individual participating in an on-the-job training program are considered

as earned income. For the purpose of this provision, the earnings include monies paid by WIA

and monies paid by the employer (if the on the job training participant is under 19 and under

parental control of another assistance group member, the WIA income of that individual is

excluded).

Payments from WIA Classroom Training Programs including allowances, earnings, and

incidentals to training are excluded. The exclusion for classroom training is not limited to a

specific age group.

Chapter: 1800 Income Program: FS

1810.0403 Income from Indian WIA Program (FS)

Payments received by an individual participating in an on-the-job training program with the Indian

WIA Program is excluded in its entirety.

1810.0500 REAL ESTATE INCOME (FS)

Income from real estate includes any funds resulting from property ownership. This income can

be earned or unearned.

1810.0502 Income from Rental Property (FS)

Rental income is any payment for using real or personal property less allowable expenses.

Examples of rent include payments for the use of:

1. land;

2. buildings;

3. an apartment, room, or house; or

4. machinery or equipment.

If an individual spends 20 or more hours weekly actively managing the rental property, the net

rental income is included as earned income.

If an individual spends less than 20 hours weekly actively managing rental property as a

business, the net rental income (gross income minus expenses) is included as unearned income.

1810.0600 IN-KIND BENEFITS (FS)

Non-cash or in-kind benefits are excluded. This may include:

1. meals,

2. clothing,

3. public housing (HUD),

4. produce from a garden,

5. WIC coupons, and

6. food stamps.

1810.0601 In-Kind Benefits - Meals/Food (FS)

The following types of in-kind support are excluded:

1. free or reduced price meals and food from government agencies or schools,

2. service facilities and other institutions recognized under a USDA Program,

3. the Older Americans Act or DCF Program,

4. and the value of the food stamps and WIC coupon allotments.

1810.0601.01 Sharing Situations (FS)

Monies provided to meet a portion of mutual living expenses from a person sharing living

arrangements with the assistance group are to be excluded.

1810.0602 In-Kind Benefits for Disabled Veterans (FS)

The clothing allowances for veterans with prosthetic or orthopedic devices are excluded.

Chapter: 1800 Income Program: FS

1810.0603 Medical and Social Service Programs (FS)

Medical and social service program payments or in-kind benefits are excluded. Some examples

are:

1. child welfare services provided under Title IV-B of the Social Security Act;

2. Title XX services;

3. services provided under Title III of the Older Americans Act;

4. Title XIX medical assistance (Medicaid);

5. Title XVIII health insurance (Medicare);

6. services provided under the Rehabilitation Act of 1973;

7. mental health services;

8. Veterans Administration payments for aid and attendance, unreimbursed medical

expenses and housebound allowances;

9. maternal and child health and children's services provided under Title V of the Social

Security Act; and

10. payments made to participants of the Consumer Directed Care Project.

1810.0700 SUPPORT (FS)

Support payments are those funds paid by a legal or non-legal parent intended for the support or

maintenance of a member of the SFU.

Examples of support payments are:

1. voluntary and court ordered child support payments received from a legal or non-legal

parent,

2. monies received to pay basic living expenses, and

3. income received for additional living expenses such as recreation and transportation.

The support is considered as unearned income of the child for whom the payment is intended.

1810.0701 Child Support (FS)

If child support is paid through the court and a fee is deducted due to a court order, only the

amount actually received by the individual is included as unearned income. If the individual

requests that child support be paid through the court, the gross amount before court deductions

are included as unearned income.

Child support retained by state collections is not counted as income.

1810.0705 Alimony (FS)

Alimony is money allocated from one individual to another by the court as a result of a divorce or

separation agreement. The amount of alimony received or anticipated to be received must be

counted as unearned income minus any collection fees charged.

1810.0707 Verification of Support (FS)

When child support or alimony is received or anticipated, the individual must provide verification

at application and recertification of:

1. the amount received,

2. date payment received and whether it will continue,

3. whether or not payment is court ordered,

4. from whom and to whom the payments are made, and

5. the amount of any collection fee charged.

Chapter: 1800 Income Program: FS

1810.0800 ASSISTANCE FROM GOVERNMENT AGENCIES (FS)

Assistance payments are benefits based on applicant or recipient need.

1810.0802 Energy Assistance Payments (FS)

The following energy assistance payments are excluded by federal law:

1. direct payments or allowances made for the purpose of providing energy assistance

under any Federal law, such as Low Income Home Energy Assistance Program

(LIHEAP),

2. a one time payment or allowance made under a Federal or state law for costs of

weatherization or emergency repair or replacement of an unsafe or inoperative furnace or

other heating or cooling device, and

3. payments made to fuel dealers and landlords on behalf of households.

In order for an energy assistance payment to be excluded, it must be clearly defined by the

legislative body authorizing or funding the program. LIHEAP payments are one example of

clearly defined energy assistance.

The amount of an excluded energy assistance payment need not be verified. If the payment

source is questionable, the eligibility specialist should verify that the payments are correctly

defined as Federal energy assistance or a Federal or state one time payment.

HUD utility subsidies do not count as unearned income. The HUD utility payment will not count

as income to the assistance group whether paid to the assistance group or to the utility company.

1810.0805 Programs Administered by HUD/FmHA (FS)

Payments from the U.S. Department of Housing and Urban Development (HUD) and the Farmers

Home Administration (FmHA) can be excluded if used to offset or subsidize their rent or mortgage

payments. These payments may be made to landlords or mortgagees.

When an assistance group lives in subsidized housing, all or a portion of its rent may be paid by

HUD or the Farmers Home Administration (FmHA). In this situation, a rent deduction may be

claimed for the amount the assistance group actually pays.

The assistance group living in subsidized housing may also qualify for a HUD or FmHA utility

payment. These utility payments are excluded as income as they are made for the purpose of

providing energy assistance. Additionally, when a HUD/FmHA utility allowance is used to reduce

the amount of rent, this type of "utility allowance" is not to be considered income.

1810.0811 Disaster Assistance Payments (FS)

Permanently exclude:

1. payments, including disaster unemployment assistance, received under the Disaster

Relief Act of 1974 [P.L. 93-288, Section 312(d)], as amended by the Disaster Relief and

Emergency Assistance Amendments of 1988 [P.L. 100-707, Section 105(i)] from income.

2. National Flood Insurance Program (NFIP) payments made under the National Flood

Insurance Act of 1968, as amended by Public Law 109-64, enacted on September 20,

2005.

Exclude interest earned on disaster assistance payments from income.

Most Federal Emergency Management Assistance (FEMA) funds are excluded. However, some

payments made to homeless people to pay for rent, mortgage, food, and utilities when there is no

major disaster or emergency are not excluded under this provision.

Chapter: 1800 Income Program: FS

Apply this exclusion when:

1. the president determines an emergency or major disaster exists; and

2. the individual was directly affected by the disaster; and

3. the payment is received from a disaster assistance organization or a federal, state or

local government.

1810.0813 Federal Relocation Assistance (FS)

Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Act of

1970 (Public Law 91-646, Section 261) are excluded as income.

1810.0816 Foster Care Payments (FS)

Foster care payments for children or adults are included as unearned income if the foster care

child or adult is included as a food stamp SFU member. If the SFU chooses to exclude the foster

care child or adult, the income will not be counted. The foster care child or adult is not eligible as

a separate assistance group.

1810.0819 Developmental Disability Payments (FS)

Support Independent Living Arrangement (SILA) payments from the Agency for Persons with

Disabilities are considered unearned income in the budget. These payments are considered

assistance based on need and are paid to disabled individuals moving from group or community

homes to independent living situations to assist with living expenses.

1810.0820 Supplemental Security Income (FS)

SSI is a means tested program that is administered by the Social Security Administration. SSI

assistance payments are included as unearned income.

1810.0824 Assistance Payments Based on Need (FS)

Passages 1810.0826 and 1810.0828 discuss policy on treatment of assistance payments.

Income based on need, such as Temporary Cash Assistance, Refugee Assistance Program or

Refugee Resettlement Match Grant payments, are included as unearned income unless

specifically excluded in the following sections. Temporary Cash Assistance is the income of the

adult in the standard filing unit who must be the payee of the benefit regardless of their

participation status.

1810.0826 Home Care for Elderly or Disabled Adult Payments (FS)

HCE or HCDA payments are included as unearned income if the disabled/elderly person is part of

the assistance group. If the disabled/elderly person is not part of the assistance group, the

payment is counted as earned income to the assistance group member providing the care.

1810.0828 Family Subsistence Supplemental Allowance (FS)

A provision of the Department of Defense Act for Fiscal year 2001 requires DOD to pay certain

military members and their families a Family Subsistence Supplemental Allowance (FSSA) of up

to $500 per month. The FSSA is available to military members who have completed basic

training and whose gross household income is within the food stamp gross income limit for the

household size. The food stamp definition of a household is also used when the FSSA is

calculated. The FSSA will be counted as unearned income in the TCA, Food Stamp and

Medicaid Programs.

Chapter: 1800 Income Program: FS

1810.0830 Overpayments - Means-Tested Programs (FS)

When income from a means-tested program, such as Temporary Cash Assistance, is reduced

due to failure on the individual's part to comply with a program requirement, the gross amount is

included in the food stamp budget. The individual's failure to comply does not have to be

intentional or fraudulent.

If the individual is able to verify the recoupment is due to an agency error, the net income amount

will be budgeted.

For purposes of this policy only, do not treat Supplemental Security Income (SSI) like a means-

tested program. When income from SSI is withheld to recover an overpayment, exclude the

portion withheld as income.

1810.0831 Overpayments - Non-Means-Tested Programs (FS)

When income from a non-means-tested program is withheld to recover an overpayment, the

portion withheld is excluded as income.

1810.0900 BENEFITS (FS)

The gross benefit amount received or anticipated to be received is considered unearned income.

Benefits are owned by the individual for whom they are intended unless the individual is not in the

home and the benefits are not redirected. Deductions for optional items such as health insurance

and Medicare premiums continue to count as income.

1810.0901 Verification of Unearned Income (FS)

All non-exempt unearned income must be verified at application and recertification unless

otherwise specified. The following sources may be used to verify unearned income:

1. BENDEX or SDX tapes,

2. SSA award letter,

3. VA award letter,

4. pension or award letter,

5. Unemployment Compensation award letter, and

6. child support court statement and/or current statement from absent parent.

1810.0904.01 SSA Income (FS)

Benefits that are paid by SSA are considered unearned income. The gross entitlement amount in

dollars and cents prior to any deduction is budgeted. Recouped benefits not received by the

household as well as Social Security Educational Benefits are excluded as unearned income.

1810.0905 Annuities, Pensions and Retirement Income (FS)

Annuities, pensions, retirement or disability payments are all included as unearned income.

These payments are the result of purchase of an annuity, retirement from employment, survivor

benefits for a former employee's dependents, or injury or disability, and may be made by an

employer, an insurance company, or public or private fund.

Chapter: 1800 Income Program: FS

1810.0906 Veterans Benefits and Payments (FS)

Veterans’ compensation and pensions are based primarily on service in the armed forces and

may also be made to the veterans’ dependents or survivors. These payments, including stipend

payments for participation in a study of Vietnam era veterans’ psychological problems (P.L. 99-

576) and monthly payments to veterans of the Vietnam era as a result of exposure to Agent

Orange (P.L. 102-4) are counted as unearned income. The following are excluded as income:

1. Reductions in basic pay while in active duty service or selected reserve service to provide

for future basic educational assistance (P.L. 99-576).

2. Payments to a natural child of a Vietnam veteran born with spina bifida, except spina

bifida occulta, as a result of the exposure of one or both parents to Agent Orange (P.L.

104-204).

3. Payments to a natural child of a woman Vietnam veteran born with one or more birth

defects resulting in permanent physical or mental disability (P.L. 106-419).

4. Aid and attendance, a housebound allowance and unreimbursed medical expenses.

1810.0908 Workers’ Compensation Payments (FS)

Workers’ Compensation payments are included as unearned income.

Workers’ Compensation payments are awarded to an injured employee or to the employee's

survivors. Any portion of the payment designated for medical expenses or legal fees paid or

deducted at the source and not controlled by the individual is excluded from the income amount.

1810.0909 Railroad Retirement Payments (FS)

Retirement, survivor, unemployment, sickness and strike benefits from railroad payments are

included as unearned income. Premiums for medical insurance under Medicare that may have

been deducted must be added to the payment amount in determining the amount of unearned

income. Individuals having an SSN beginning with the number “7” are entitled or potentially

entitled to railroad benefits.

There are three different railroad employee benefits:

1. The retirement benefit is payable only to the railroad employee or the employee's

spouse. Benefits may be increased because of dependent children; however, the

amount of the increase is considered income to the individual rather than the child(ren).

2. The survivor benefit is payable to widows/widowers and children or to dependent parents

if no widow(er) or child qualifies.

3. Checks for unemployment, sickness, and strike benefits cover a period up to two weeks.

Retirement and survivor benefits are paid monthly. Payment received in the current month is the

amount due the individual for the prior month.

Railroad retirement benefits are adjusted for cost of living at the same time as SSA. However,

differences in amounts may exist due to individual case circumstances. Verification of differences

should be made by reviewing an award notice. When contact with the railroad retirement board

(RRB) is necessary, contact the local RRB district office, not the RRB in Chicago.

1810.0910 Unemployment Compensation (FS)

Payments received pursuant to a state or federal unemployment law, or paid by a union or

employer are included as unearned income.

1810.0912 Severance Pay (FS)

Severance pay is included as unearned income.

Chapter: 1800 Income Program: FS

1810.0914 Energy Employees Occupational Illness Compensation Program (FS)

Payments made to individuals under the Energy Employees Occupational Illness Compensation

Program (EEOICP) Act of 2000 (Public Law 106-398) are excluded as income.

1810.0915 Domestic Volunteer Services Act (FS)

The following payments to volunteers under Title II, the Domestic Volunteer Services Act of 1973

(Public Law 93-113), as amended, are excluded as income:

1. Payments under Title I of the act (including payments from such Title I Programs as

VISTA or AmeriCorps VISTA, University Year for Action, and Urban Crime Prevention

Program) to volunteers are excluded for those households receiving food stamps at the

time they joined the Title I Program. Verification of participation in the Food Stamp

Program at the time the individual joined VISTA is mandatory.

Exception: Applicants who were not receiving food stamps at the time they joined

VISTA will have these volunteer payments included as earned income.

2. Payments under Title II such as RSVP, and Foster Grandparents and Senior Companion

Program.

1810.0916 Older Americans Act (FS)

Under the Older Americans Act, Title V is the Community Service Employment Program. The

organizations involved in this program are:

1. Experience Works,

2. National Council on Aging,

3. National Council on Senior Citizens,

4. American Association of Retired Persons,

5. U.S. Forestry Services,

6. National Association of Spanish Speaking Elderly,

7. National Urban League, and

8. National Council on Black Aging.

Funds received under the Community Service Employment Program must be excluded as

income.

1810.0917 Indian Tribe/Alaskan Native (FS)

The following income exclusions apply for Indian tribes and Alaskan natives (refer to Chapter

1600 for applicable asset exclusions):

1. Payments received under the Alaska Native Claims Settlement Act (P.L. 92-203, Section

29 and P.L. 100-241),

2. Per capita and interest payments to the Fort Belknap Assiniboine Tribe (Montana) and

the Fort Peck Assiniboine Tribe (Montana) (P.L. 98-124, Section 5),

3. Payments to the Blackfeet, Grosventre and Assiniboine Tribes (Montana) and Papago

(Arizona) (P.L. 97-408),

4. Payments to the Chippewas of Lake Superior (certain reservations in Michigan,

Minnesota and Wisconsin) [P.L. 99-146, Section 6(b)],

5. Payments to the Chippewas of the Mississippi [P.L. 99-377, Section 4(b)],

6. Payments to the Red Lake Band of Chippewas (P.L. 98-123, Section 3),

Chapter: 1800 Income Program: FS

7. Payments to the Saginaw Chippewa Tribe (Michigan) [P.L. 99-346, Section 6(b)(2)],

8. Payments to the Turtle Mountain Band of Chippewas (Arizona) (P.L. 97-403),

9. Payments to the White Earth Band of Chippewa Indians (Minnesota) (P.L. 99-264,

Section 16),

10. Income from certain submarginal land of the United States held in trust for the following

Indian tribes (P.L. 94-114, Section 6):

a. Assiniboine and Sioux Tribes

b. Blackfeet Tribe

c. Cherokee Nation of Oklahoma

d. Bad River Band of the Lake Superior Tribe of Chippewa Indians of Wisconsin

e. Lac Courte Oreilles Band of Lake Superior Chippewa Indians

f. Minnesota Chippewa Tribe

g. Fort Belknap Indian Community

h. Keweenaw Bay Indian Community

i. Navajo Tribe

j. Cheyenne River Sioux Tribe

k. Crow Creek Sioux Tribe

l. Devils Lake Sioux Tribe

m. Lower Brule Sioux Tribe

n. Oglala Sioux Tribe

o. Rosebud Sioux Tribe

p. Standing Rock Sioux Tribe

q. Shoshone-Bannock Tribes,

11. Old Age Assistance Claims Settlement Act provided funds to heirs of deceased Indians

under the act should be excluded as income, except for per capita shares that exceed

$2,000 (P.L. 98-500, Section 8),

12. Per capita payments of $2000 or less from funds held in trust by the Secretary of the

Interior for the benefit of Indians or from leases on restricted land (the Indian Judgement

Fund Act, P.L. 93-134 [(Sections 7 and 8) as amended by 98-64, 97-458 and 103-66)],

13. Relocation assistance payments to Navajo and Hopi Tribe members (P.L. 93-531),

14. Income from the disposition of funds to the Grand River Band of Ottawa Indians (P.L. 94-

540),

15. Payments to the Passamaquoddy Tribe and the Penobscot Nation and the Houlton Band

of Maliseet or any of their members received pursuant to the Maine Indian Claims

Settlement Act of 1980 [P.L. 96-420, Section 9(c)],

16. All trust fund proceeds from the Puyallup Tribe (State of Washington) Settlement Act of

1989 [P.L. 101-41, Sections 6(b) and 10(b)],

17. Per capita payments to or funds held in trust for Sac and Fox Tribes (Oklahoma and

Iowa) (P.L. 94-189),

18. Judgment funds, except for per capita payments in excess of $2,000, to the Seminole

Nation of Oklahoma, the Seminole Tribe of Florida, the Miccosukee Tribe of Indians of

Florida and the independent Seminole Indians of Florida (P.L. 101-277),

Chapter: 1800 Income Program: FS

19. All monies received from the Seneca Nation Settlement Act of 1990 [P.L. 101-503,

Section 8(b)],

20. Payments by the Indian Claims Commission to the Confederated Tribes and Bands of the

Yakima Indian Nation or the Apache Tribe of the Mescalero Reservation (P.L. 95-433,

Section 2), and

21. Payments by the Confederate Tribes of the Colville Reservation Grand Coulee Dam

Settlement Act (P.L. 103-436).

Note: Information about Apache is with Yakima, Assiniboine is with Blackfeet, Maliseet is with

Passamaquoddy and Penobscot, Miccosukee is with Seminole, Papago is with Blackfeet and

general information is with Indians.

1810.0918 Victims of Nazi Persecution/Japanese/Aleutian Payments (FS)

Payments to victims of Nazi persecution are excluded as income. These payments include, but

are not limited to, reparation from Germany, Austria, and the Netherlands. As long as payments

to individuals are based on their status as victims of Nazi persecution, the payment will be

disregarded in the eligibility determination. Japanese and Aleutian restitution payments are also

excluded as income.

1810.0920 Crisis Intervention Program (FS)

Payments from the Crisis Intervention Program (CIP) administered by the Community Services

Administration (CSA) are excluded.

1810.0921 Cranston-Gonzales National Affordable Housing Act (FS)

Payments received under this Act are excluded as income (P.L. 101-625).

1810.0922 Crime Victim Compensation Program (FS)

Exclude payments received under this program that offers compensation to victims and survivors

of victims of criminal violence, including drunk driving and domestic violence (P.L. 103-322).

1810.0924 Earned Income Tax Credit and Child Tax Credit (FS)

Payments from federal income taxes for earned income tax credit and child tax credit, including

any retroactive payments, are excluded as income.

1810.0925 Radiation Exposure Compensation Act (FS)

Payments to compensate individuals or their survivors who have become ill or died as a result of

exposure to radiation from nuclear testing and uranium mining, pursuant to the Radiation

Exposure Compensation Act, are excluded as income.

1810.0926 Plan for Achieving Self-Support (FS)

Money placed in the account of SSI recipients as part of a Plan for Achieving Self-Support

(PASS) is excluded as income.

1810.0928 Child Nutrition Act of 1966 (FS)

The assistance to children received for the Special Milk Program, the School Breakfast Program,

and the WIC Program is excluded as income. (Including WIC coupons received through WIC

demonstration projects which may be exchanged for food at farmers’ markets).

Chapter: 1800 Income Program: FS

1810.0930 "At-Risk" Block Grant Child Care Payments (FS)

Payments received through "at-risk" (of welfare dependency) block grant child care payments

[P.L. 101-508, Section 5801 which amended Section 402(i) of the Social Security Act], are

excluded as income.

These payments are made through the Children and Families Program Office's Subsidized Child

Care Program to families that are employed. No deduction is allowed for any expense covered

by such payments. Payments for child care services are either vouchered or paid directly to the

provider. Payments are considered vendor payments and excluded.

1810.0931 National and Community Services Trust (FS)

Payments under the National and Community Services Trust Act (NCSTA) of 1993 (P.L. 103-82)

are excluded as income.

NCSTA projects for youth in Florida are operated through the Florida Conservation Corps. The

project name is the Florida Youth Conservation Corps.

The NCSTA of 1993 revised the National and Community Services Act (NCSA) of 1990 and

established a corporation for National and Community Service.

The corporation established by the NCSTA administers all National Service Programs which

include:

1. the Senior Corps, for participants over the age of 55;

2. the Youth Corps, for participants 14-17 years of age;

3. Learn and Serve, for participants in grades K-12; and

4. AmeriCorps Network of Programs (also known as AmeriCorps State/National Programs).

1810.1000 DIVIDENDS INTEREST AND ROYALTIES (FS)

Payments of dividends and interest on countable assets, including interest on bank accounts, are

excluded as unearned income. This includes interest on a trust account when the interest is

either paid to the assistance group, or allowed to accrue to the account at the option of the

recipient. Royalties are counted as unearned income.

1810.1012 Interest in Individual Development Accounts (FS)

Individual Development Accounts (IDAs) are dedicated savings accounts that can be used by

eligible participants for purchasing a first home, paying for post-secondary education,

transportation, assistive technology or capitalizing a business. These IDAs are comprised of

participant’s savings from earned income and may be matched by funds controlled by the

Regional Workforce Board. Excluded IDAs must be funded in part with TANF or Assets for

Independence Act (AFIA) dollars.

Funds in an IDA, including interest accruing in such accounts, shall be disregarded in determining

eligibility in food stamps.

Chapter: 1800 Income Program: FS

1810.1100 REIMBURSEMENTS (FS)

Reimbursements for past or future expenses are excluded if they do not exceed actual expenses

and do not represent a gain or benefit. To be excluded, these payments must be specifically

intended and used for expenses other than normal living expenses.

Any part of the reimbursement amount that exceeds the actual expense is included as income.

Reimbursements for normal household living expenses such as rent or mortgage, personal

clothing, or food eaten at home are a gain or benefit and, therefore, are included as income.

Examples of excluded reimbursements are:

1. reimbursement from the Uniform Relocation Assistance and Real Property Acquisition

Policy Act,

2. reimbursements or flat allowances from the employer that are over and above the basic

wages and used for job related expenses such as travel, per diem, uniforms, and

transportation to and from the job or training site,

3. reimbursements for out-of-pocket expenses incurred by volunteers in the course of their

work,

4. medical reimbursements from Workers' Compensation benefits specifically designated for

medical expenses,

5. reimbursements by Employment and Training Programs,

6. reimbursements received by households to pay for services provided by Title XX of the

Social Security Act,

Note: Not all Title XX payments are reimbursements. Some are for normal living

expenses and, as such, are not excluded (for example, certain Title XX payments for

foster care). If the foster child or foster adult is included in the SFU, the payment must be

included as income.

7. clothing maintenance allowance paid to a member of the armed services, and

8. any portion of benefits provided under Title IV-A of the Social Security Act that is

attributed to an adjustment for work related child care expenses.

1810.1200 STUDENT LOANS, GRANTS, AND SCHOLARSHIPS (FS)

All Title IV and Non-Title IV income a student receives from scholarships, educational grants,

gifts, loans and work study are excluded as income. This includes federal Perkins loans

authorized under Title IV, Bureau of Indian Affairs Programs and loans, and Road to

Independence funds.

1810.1300 INCOME FROM OTHER SOURCES (FS)

This section presents the application of policy for other sources of income.

1810.1301 Loans (FS)

All loans, including loans from private individuals as well as commercial institutions are excluded

income if there is intent to repay.

When the eligibility specialist questions that a valid loan exists, the individual must verify the

existence of the loan from the source. A signed statement from the loan provider that confirms

that repayments are being made or will be made in accordance with an established payment

schedule is sufficient.

Chapter: 1800 Income Program: FS

When an individual is the borrower:

Proceeds of a valid loan received by the borrower are not income in the month of receipt. If

the loan is determined not to be valid, the proceeds are considered income in the month

received. The amount remaining from the loan in the month following receipt is considered

as an asset to the borrower.

When an individual is the lender:

If the loan is determined to be valid and negotiable, the loan is a countable asset; only the

interest portion of the payment received is excluded as income to the lender. The principal

portion of the payment is conversion of an asset, not income. If the loan is determined to be

not valid and not negotiable the loan is not a countable asset, the entire payment received

(principal and interest) is counted as income.

1810.1302 Contributions (FS)

All direct money payments from any source that represent a gain or benefit to the individual are

included as unearned income.

A contribution is cash received by any member of the standard filing unit. A contribution may be

received on a one-time basis or on regular or irregular intervals.

An allowance is considered a contribution when paid to an individual by a person outside the

individual's standard filing unit. This would apply to money from a non-legal father when there is

a legal father.

The individual must provide verification of the amount received as a gift or contribution. When

written verification is unavailable, documentation must include the following information:

1. date oral verification received,

2. source of verification,

3. source of funds,

4. date made, and

5. the amount.

Standard verbal verification policy applies. If the individual is unable to obtain verification,

discuss with the individual. The eligibility specialist should then use the best information available

and record this in CLRC.

1810.1303 Trusts (FS)

Monies that are withdrawn from a trust fund by the assistance group are to be considered income

in the month of receipt. The withdrawal is considered income to the assistance group without

regard to whether the trust account is considered an available or an unavailable asset. Dividends

and interest from the trust, which the assistance group has the option to receive or reinvest in the

trust, are excluded as income.

1810.1304 Gifts (FS)

A gift may be excluded if it is infrequent or irregular. To be a gift, an item must meet the following

requirements:

1. must be given irrevocably;

2. must not be compensation or return for services or other consideration; and

3. must be given without legal obligation on the part of the donor.

Chapter: 1800 Income Program: FS

1810.1305 Prizes and Awards (FS)

Cash prizes and cash awards are included as income unless they can be excluded as infrequent

or irregular.

An award is generally something of value received as a result of a decision or judgment of a

court, board of arbitration, or similar action. Awards are almost always cash or its equivalent.

If a prize or award is not substantial, then the eligibility specialist must consider whether it may be

excluded from income as infrequent/irregular income.

Chapter: 1800 Income Program: TCA

1820.0000 Temporary Cash Assistance

This chapter discusses income policy for individuals whose income must be considered. Refer to

Chapter 2200 to determine which SFU members must have their incomes considered.

1820.0001 Definition of Income (TCA)

Income is cash received at regular intervals from any source such as wages, benefits,

contributions, and rentals. Income means all income, earned as well as unearned, from any

source unless specifically excluded in this chapter.

1820.0100 INCOME CONCEPTS (TCA)

This section contains a discussion of the following income concepts:

1. earned and unearned income,

2. infrequent or irregular income,

3. availability of income,

4. diversion of income,

5. third party payments,

6. deeming of income and

7. verification of income.

1820.0101 Earned and Unearned Income (TCA)

Income is classified into two categories for budgeting purposes: earned income and unearned

income. All non-exempt income must be verified at application and review unless otherwise

specified.

Exempt income is income (earned or unearned) that is excluded from consideration when

determining eligibility. Accept the individual’s statement for amount and type of exempt income,

unless information is questionable or verification is required.

Earned income is the receipt of wages, salary, commission, or profit from an individual's

performance of work or services, or a self-employment enterprise.

Unearned income is income for which there is no performance of work or services. Unearned

income may include:

1. retirement, disability payments, unemployment/workers' compensation, etc.;

2. annuities, pensions, and other regular payments;

3. alimony and support payments;

4. dividends, interest, and royalties;

5. proceeds of life insurance policies;

6. prizes and awards;

7. gifts and inheritances; and

8. SSA, SSDI, and SSI.

Chapter: 1800 Income Program: TCA

1820.0102 Deductions from Gross Income (TCA)

Some deductions withheld from gross income must be included. Examples of these deductions

include:

1. premiums for Supplemental Medical Insurance (SMI/Medicare) from a Title II (Social

Security) benefit,

2. premiums for health insurance or hospitalization,

3. premiums for life insurance,

4. federal and state income taxes,

5. Social Security taxes,

6. optional deductions,

7. a garnished or seized payment, and

8. guardianship fees.

Note: If the naming of a guardian is a requirement to receive the income, deductions for

guardianship fees are disregarded, i.e., are not counted as income. This is the only exception.

1820.0103 Infrequent or Irregular Income (TCA)

Infrequent or irregular earned income not in excess of $30 in a calendar quarter is excluded when

receipt cannot be anticipated. Infrequent or irregular unearned income not in excess of $60 in a

calendar quarter is excluded when receipt can not be anticipated. This includes one-time gifts of

cash for special occasions such as birthdays or Christmas from someone whose income is not

included in the SFU. If the income is anticipated on a regular basis it will be included regardless

of the amount.

1820.0106 Availability of Income (TCA)

Some types of income are readily available to the individual and must be included; however, the

individual may have limited or no access to income in certain situations. Some unavailable

income may still be included as income.

1820.0107 Unavailable Income (TCA)

Verified court ordered support payments that the parent or relative must make outside of the

home along with guardianship or power of attorney fees are considered unavailable income and

are deducted from the total net income.

Payments made to DCF for repayment of an overpayment cannot be deducted as unavailable

income.

Income deemed to an individual outside of a filing unit is considered unavailable income when

determining the eligibility of any persons in the filing unit.

Chapter: 1800 Income Program: TCA

1820.0108.01 Available Income (TCA)

Income must be available to meet the SFU's needs to be considered, except in the case of lump

sum income. Generally, income is considered available when it is actually available and/or when

the individual has the legal ability to make the income available.

Exceptions to the policy above:

Occasionally, a regular monthly payment (e.g., Title II or VA) is received in a month other than the

month of normal receipt. As long as there is no interruption in the regular payment schedule,

consider the funds to be income in the normal month of receipt. Examples of this situation follow:

1. Advance Dated Checks - When a payor advance dates a check because the regular

payment date falls on a weekend or holiday, there is no intent to change the normal

delivery date. Whenever such an advance dated check goes to a bank by direct deposit,

the funds may be posted to the account before or after the month they are payable.

2. Electronic Funds Transfer - When an individual's money goes to a bank by direct deposit,

the funds may be posted to the account before or after the month they are payable.

Whenever this occurs, treat the electronically transferred funds as income in the month of

normal receipt. Florida State Retirement benefits are received the last workday of the

month.

3. Income may be unavailable due to legal restrictions or factors beyond the control of the

individual. In both these situations, the eligibility specialist must request supporting

evidence and make an independent assessment regarding availability based on the

evidence presented. Additional guidance may be requested from the Region or Circuit

Program Office, Headquarters, or Circuit Legal Counsel.

1820.0108.02 Government Income Excluded (TCA)

Funds from the following sources are excluded if the individual for whom the funds are specified

or intended is not in the SFU:

1. Family Placement Program,

2. Office of Developmental Services,

3. DCF,

4. Home Care for the Elderly Program, and

5. Aging Program Office.

1820.0108.03 Joint Bank Accounts (TCA)

The interest received from bank accounts is excluded as income to the individual.

1820.0112 Payments to Joint Owners (TCA)

Payment to joint owners is one payment made to two or more individuals.

A document, such as a single or combined Social Security check for a couple or to a parent on

behalf of two or more children, indicating the amount due each owner is generally sufficient

verification of ownership.

In the absence of specific documentation, divide the income minus allowable expenses by the

number of beneficiaries to determine the income amount for each individual.

Chapter: 1800 Income Program: TCA

1820.0116 Court Ordered Payments (TCA)