Income to be Included 415-25-05-20

 

Earned Income 415-25-05-20-05

(Revised 10/1/08 ML #3151)

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"Earned income" is income in cash, check or "in-kind" payment which is currently earned through the receipt of wages, salaries, tips, commissions or profit from activities in which a household is engaged through either employment or self-employment.

 

Earned income includes:

• Wages, salaries, commissions, bonuses, or profits received as a result of holding a job

• Sick leave pay or loss of time private insurance paid for the loss of employment due to illness

• Earnings for on-the-job training provided by Workforce Investment Act

• Earnings from student employment, which is different than work study

• Sheltered workshop employment wages

• Experience Works wages

• Compensation for jury duty

• Workforce Investment Act (WIA) minimum wage payments made for "entry employment," classroom, or work experience hours. (For disregarded WIA payments, See 415-25-05-30 Item 21(d)).

• Income from internships, or stipends, teaching assistantships, or fellowships which require work participation to receive the income

• Tips.  If tips are not shown on the wage stub, the recipient’s statement as to the amount of tips received each month is adequate if consistent with place, kind of employment and number of hours worked

• Veterans Administration for maintenance needs; these are benefits not specifically earmarked for other needs

• Variable Housing Allowance (VHA), Basic Allowance for Quarters (BAQ) and Basic Allowance for Housing (BAH) paid to military personnel for housing costs

• Military re-enlistment bonuses can be paid as a lump sum payments or up to 50% of the bonus amount as an initial payment with the remainder paid in equal annual payments.

If the household receives the bonus as a lump sum payment, it is exempted as irregular income. The bonus is counted as a resource the month it is received.

If the income is received as initial payment with the remainder paid in equal installments the income is to be counted as earned income.

It is up to the branch of military service to decide which military grades/series get the bonus and how much they get. Verification of bonus and payment must be obtained.

 

(See 415-25-05-05 Item 3 regarding earned income deduction.)