704 Earned Income

Advanced wages are countable in the month received when the advance is anticipated.

NOTE: The amount withheld from subsequent paychecks to repay the advance is excluded income, even if the advance was not counted when it was received.

Attendant care payments, paid by an outside source to the attendant care provider for a disabled A member of a household who meets one of the following criteria: 1.Eligible to receive SSI benefits, including presumptive SSI payments, or is eligible as a 1619B under SSI criteria. 2.Is determined disabled by SSA and in receipt of disability payments. 3.Is a recipient of disability related medical assistance under Medicaid (Title XIX of the Social Security Act). Eligibility to receive these benefits must be based on disability or blindness criteria, which is at least as stringent as SSI regulations. 4.Is in receipt of disability retirement benefits from a government agency because of a disability considered permanent under Social Security disability criteria. 5.Is a veteran with a service connected or non-service connected disability. 6.Is a veteran considered by the VA in need of regular aid and attendance or permanently house bound under Title 38 of the United States Code. 7.Is a surviving spouse of a veteran and considered by the VA in need of regular aid and attendance or permanently house bound or a surviving child of a veteran and considered by the VA as permanently incapable of self-support under Title 38 of the United States Code. 8.Is a surviving spouse or surviving child of a veteran and considered by the VA entitled to compensation for a service-connected death or pension benefits for a non-service-connected death under Title 38 of the United States Code and has a disability considered permanent. Entitled refers to a surviving spouse and surviving children who are receiving the compensation or pension benefits stated or have been approved for such payments but are not yet receiving them. 9.Is in receipt of a Railroad Retirement disability annuity and has been determined to qualify for Medicare. 10.Is in receipt of SSI optional or mandatory supplementation. (North Dakota does not have SSI optional or mandatory supplementation. However, someone moving to North Dakota may have received this benefit from another state.) 11. Is in receipt of disability-based State general assistance benefits, provided that the eligibility to receive any of these benefits is based upon disability or blindness criteria established by the state they receive the benefit from, which are at least as stringent as those used under SSI regulations. (North Dakota does not have disability-based State general assistance benefits. However, someone moving to North Dakota may have received this benefit from another state.)/elderly household People who buy and prepare food together. Spouses, parents, and children who live together are usually counted as the same household. filing unit member, are countable earned income to the attendant care provider. Attendant care payments paid from the outside source to the disabled/ elderly household member receiving the care are excluded as reimbursements. The payment is not counted twice.

Bonus pay (e.g., received every Christmas, quarterly, annually, etc.) is countable earned income. A clear understanding of how the bonus pay is earned and when it is paid is needed to prospectively budget this income.

Census income is countable earned income.

Commission is countable earned income regardless of how often it is paid. A clear understanding of how the commission is earned and when it is paid is needed to prospectively budget this income.

Average the income over a 12 month period for a household earning its entire annual income by contract in a period less than one year. These households may include school employees, sharecroppers, farmers, other self-employed households, etc. EXCEPTION: This does not apply to migrant A person who moves on a regular basis to find work in harvesting crops or other agricultural activities. seasonal farm workers. Income received hourly or on a piece work basis is averaged over the period the income is intended to cover.

Disaster relief employment income received from a National Emergency Grant is excluded income. The Department of Labor should be able to verify whether the source of income is from a National Emergency Grant under the Workforce Investment Act (WIA). The source of income must be verified if the individual suffered a job loss or was unemployed due to a recent disaster, if the employment is deemed temporary (less than six months), and if the type of work is disaster related.

The Dislocated Worker program is funded by WIA. Payments received by participants over the age of 19 years old through WIA are countable earned income.

EXCEPTION: Payments to an enrolled American Indian, veteran, migrant/seasonal farm worker are excluded; and, payments to dependents under age 19 years old are excluded.

Earned income of any individual under age 18 years old is excluded through the month of the individual's 18th birthday when the individual is an elementary or secondary school student, and lives with a natural, adoptive, or stepparent or under the parental control When a child, under 18 is financially or otherwise dependent upon an adult member of the household, that child is considered to be under the parental control of the adult. of a household member other than a parent. For purposes of this policy, an elementary or secondary school student is someone who attends elementary or secondary school, or who attends classes to obtain a General Equivalency Diploma that are recognized, operated, or supervised by the student's state or local school district, or who attends elementary or secondary classes through a home-school program recognized or supervised by the student's state or local school district. The exclusion shall continue to apply during temporary interruptions in school attendance due to semester or vacation breaks, provided the child's enrollment will resume following the break. If the child's earnings or amount of work performed cannot be differentiated from that of other household members, the total earnings shall be prorated equally among the working members and the child's pro rata share excluded.

Earned income is countable for individuals under age 18 years old working, and/or attending high school, and living on their own.

Earned Income Tax Credit An amount of money which has been either deducted from the taxes owed or paid as a refund resulting from filing a Form 1040 or 1040A Tax Return for a calendar year. (EITC) payments and Child Tax Credit received as advance payments or as a refund, are excluded earned income.

Family Subsistence Supplemental Allowance (FSSA) is paid to certain service members and their families, if determined eligible Having met the qualifications to receive a SNAP benefit by meeting the specified nonfinancial and financial requirements of eligibility. by the Department of Defense. The amount of FSSA is shown on the member's Leave and Earnings Statement. FSSA is countable earned income.

Federal income tax refunds are excluded as income in the month of receipt and as a resource for a period of 12 months following the month of receipt.

Garnishments deducted from wages for a debt (except for previous advance on wages) are countable earned income.

NOTE: The garnished amount is an allowable expense if garnished due to a legally obligated child support Voluntary or court ordered payment by an absent parent for the purpose of meeting the needs of his/her child(ren). debt.

The source of funding of the specific government training allowance must be known to determine whether the income is earned or unearned and countable or excluded. The training allowances are excluded if they are a reimbursement.

Training allowances from vocational and rehabilitative programs recognized by federal, state or local governments such as Work Readiness Component (WoRC) of TANF and Tribal Work Experience Program (TWEP) are countable earned income.

In-kind benefits are a gain or benefit that is not in the form of money payable directly to the household, such as meals, clothing, housing, produce from a garden, and vendor The person or business who provides goods or services. payments. In-kind benefits are excluded.

Income received too infrequently or irregularly to be reasonably anticipated is excluded earned income IF the infrequent or irregular income of all household members does not exceed $30 in a quarter. If the income exceeds $30 in a quarter, the last 30 days of income will be used.

Evaluate how individuals on jury duty are compensated to determine whether the jury duty payment is countable or excluded earned income. When the jury duty is paid over a time period of several days or weeks at a specific amount (e.g., $15 per day) and can be anticipated, the payment is countable earned income. Jury duty income is excluded when:

• The jury duty pay meets the definition of irregular or infrequent income; or,

• The individual verifies the payment was given to their employer; or,

• The jury pay is a reimbursement.

   

Nonrecurring lump payments are excluded as income. Nonrecurring lump sum payments may include:

1. Income tax refund;

2. Rebates or credit refunds; and,

3. Crop insurance proceeds.

    

The Basic Allowance for Housing (BAH) is one monthly payment, replacing the Variable Housing Allowance (VHA) and Basic Allowance for Quarters (BAQ). BAH (BAQ or VHA) is countable earned income.

Payments made under the Family Subsistence Supplemental Allowance Program (FSSA); Basic Allowance for Subsistence (BAS) payments are countable earned income.

Military pay is countable wages if earned.

EXCEPTION: The mandatory salary reduction for military service personnel used to fund the GI Bill is excluded from income.

Military re-enlistment bonuses are paid in one of two ways: a lump sum; or up to 50% of the bonus amount as an initial payment with the remainder of the bonus paid in equal annual payments. It is up to the military service to decide which military grades/series receive re-enlistment bonuses and how much the re-enlistment bonus is. This means the Navy, Marines, Army, and Air Force can have their own policies regarding payment of re-enlistment bonuses. The eligibility staff member must verify what the payment policy is depending on the military service. How the bonus is paid out determines how it is counted:

• If a household receives a lump-sum re-enlistment bonus, it is exempt from income as a non- recurring lump sum payment Earned or unearned income received on a non-recurring (one-time) basis. It is considered as a resource in the month received.. The money is counted as a resource in the month it is received.

• If a household receives up to half of the bonus pay as an initial payment with the remaining bonus paid in equal annual installments, the bonus is counted as earned income. It is averaged over a 12-month period since the bonus is paid annually.

   

Payments are excluded from programs funded under Title V of the Older Americans Act of 1987 and include:

1. Experience Works Inc., also known as Green Thumb;

2. Forest Service;

3. American Association of Retired People (AARP);

4. National Council on Aging;

5. National Council of Senior Citizens; and,

6. Foster Grandparent Program.

    

Money diverted from an individual’s income to a PASS account is excluded.

Definition of Royalties - royalties include compensation paid to the owner for the use of property usually copyrighted material such as books, music, etc., or natural resources such as, mineral, oil, gravel

or timber, etc.

The only earned royalties are derived from a self-employment The act of engaging in a trade or business. A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. An individual does not have to make a profit to be in a trade or business as long as a profit motive exists business enterprise Unearned Royalties

Gross income from the sale of blood or blood plasma is countable earned income.

Sick leave or vacation pay received while still employed is countable earned income. Vacation pay received after employment termination is severance pay and considered unearned income. Sick leave pay received after employment termination is considered unearned income.

Short term or long-term disability or loss of time insurance payments for illness or injury paid by the employer is countable earned income.

Note: If paid by someone other than the employer see Unearned Income.

Tips are countable earned income. A clear understanding of how tips are earned and paid is needed to prospect this income. Verification Third-party information or documentation used to establish the accuracy of statements. varies depending on how the tips are reported, shown on wage stubs, and are paid. Acceptable verification of tips may include: the individual's daily tip log, pay stubs, or an employer statement.

Note: If paid or reported weekly or bi-weekly, regular conversion rules apply.

An unearned vendor payment is money paid directly to the household's creditors, a person, or an organization that provided a service to the household. A vendor payment A full or partial money payment made by an individual who is not a household member or by a public or private organization directly to a third party for a household expense. is made on behalf of the household by a person or organization that is not in the household. Money legally obligated or payable to the household as earnings but is diverted to a third party for a household expense, is countable earned income.

Gross wages are wages before taxes, insurance, etc., are deducted. Gross wages include salary and commission earnings and are countable earned income.

Earnings from work study are excluded as educational income. If a student exhausts work study hours and continues working, the income received is no longer considered excluded educational income, but is countable wages.

The Workforce Investment Act (WIA) replaced Job Training Partnership Act (JTPA).

Work Experience wages paid to the participant A person who is eligible for benefits under SNAP, even if that person is not currently receiving benefits because the amount is too low, or the person is under a sanction or disqualification. by the sponsoring WIA agency are excluded earned income.

WIA On-the-Job-Training wages paid to the participant by the employer are earned income.OJT payments received by participants over the age of 19 years old through WIA are countable earned income. EXCEPTION: OJT payments to an enrolled American Indian, veteran, Migrant/seasonal farm worker, and to dependents under age 19 years old are excluded.