Earned Income 400-19-55-15

 

Definition of Earned Income 400-19-55-15-05

(Revised 4/1/2013 ML #3362)

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(N.D.A.C. 75-02-01.2-44)

 

Earned income is defined as income earned through the receipt of wages, salaries, commissions, bonuses or profit from activities in which an individual is engaged through employment or self-employment. Earned income must entail personal involvement and effort on the part of the applicant or recipient. All countable income must be verified by the household and documented in the case record.

 

The types of earned income listed below are subject to the earned income disregards, such as the standard employment expense allowance, employment incentives, and child or adult dependent care expense deduction, when appropriate:

1. Wages (including paid sick, vacation and holiday leave but not public or private disability payments), salaries, commissions, bonuses, or profits received as a result of self-employment, subsistence supplemental allowance for members of the armed forces;

2. Earnings from on-the-job training including Job Opportunities and Basic Skills (JOBS);

3. Wages received as the result of participation in the Mainstream and Green Thumb Programs, both funded by the U.S. Department of Labor;

4. Earnings of individuals employed by schools as teachers' aides, etc., under Title I of the Elementary and Secondary Act;

5. Wages received by an individual participating in a Job Corps Program, when the wages are not provided by the Job Corps Program.

6. Wages received from sheltered workshop employment;

7. Loss-of-time private insurance paid for the loss of employment due to illness or injury;

8. Compensation for jury duty;

9. Compensation for plasma donations, participation in medical studies, etc.;

10. Tips. When tips are not shown on wage stub, the recipient's statement as to the amount of tips received each month is adequate if consistent with place, type of employment and number of hours worked;

11. Wages received by an individual or Qualified Service Provider (QSP) for providing services under Family Home Care, when the individual is employed by an agency. (When an individual or QSP is not an employee of an agency, the income is considered self-employment.)

12. Income from boarders;

13. Income from room rentals;

14. Income from employment internships and stipends;

15. In-kind income/non-monetary if the recipient has the option of receiving cash payment or a non-monetary benefit. (e.g. Payment for a service in a form other than money, such as rent, food, or clothing);

16. Income received through the Workforce Investment Act (WIA) or YouthBuild_USA by adult TANF household members, minor parents, and children not attending school full-time is considered earned income and used to determine the TANF benefit.

17. Alternative Trade Adjustment Assistance/Reemployment Trade Adjustment Assistance wage subsidy, provided under the Trade Adjustment Assistance (TAA) Extension Act of 2011, is considered earned income as the individual must be employed to receive this assistance. This wage subsidy is paid to eligible workers over the age of 50 and pays a portion of the individuals wage (the difference between the individual’s new wage and old wage).

18. In-store credit/bonuses provided to employees are considered earned income if the employee has the option of receiving a cash payment. The in-store credit/bonus will be disregarded as income if the employee does not have the option of receiving a cash payment.