Disregard of Certain Income 400-19-55-25

(Revised 1/1/17 ML #3482)

View Archives

 

(N.D.A.C. 75-02-01.2-45)

 

The following types of income will be disregarded when determining eligibility for TANF:

 

Complementary Program Assistance - To the extent these do not serve the same purpose as TANF, assistance payments from other programs, agencies, or organizations will not be considered in determining the amount of TANF to be paid. In these complementary program relationships, there must be assurance that no duplication exists between such other assistance and TANF. Non-duplication of assistance shall be assured in relation to:

  1. The different purpose for which the other program or agency grants such aid; or

  2. The need for goods and services that are not included in the TANF benefit. If either of these two conditions are met, complementary assistance by another program, agency, or organization will not constitute duplication.

Types of Complementary Program Assistance include but are not limited to:

All types Complementary Program Assistance listed above are addressed later in this section with the exemption of memorials, donations, remembrances, commemorations, etc., received by a household following the death of a family member.

 

The following types of income are excluded:

  1. Non-recurring lump-sum unearned payments are those payments that cannot be reasonably anticipated to be received again. These payments include, but not limited to:

 

All non-recurring lump sum payments are counted as assets in the second month following the month of receipt, unless specifically excluded by Federal Law. Policy for treatment of assets can be found in Asset Availability 400-15-55-05-10.

 

  1. Earned income received as a non-recurring lump-sum payment including, but not limited to:
  1. Tribal Payments and Individual Indian Monies (IIM) Accounts. See this section for the treatment of this income.

  2. Reimbursements to a household member or payments to third-party for past or future expenses, including but not limited to:
  1. Child support or spousal support of a TANF recipient assigned to the Child Support Division.

  2. Children’s earned income. See Student Earned Income Treatment 400-19-55-15-30 for how Children’s earned income is considered.

  3. In-kind income that is paid or given in goods, commodities, credits, including in-store credits or services instead of money when the individual does not have the option to receive a wage or monetary payment.

  4. Dividends and Interest derived from savings and checking accounts and investments.

EXCEPTION:

The interest portion of payments from investments, annuities, pensions, and other retirement plans will be considered countable income when withdrawn on a regular basis.

  1. Money deposited into a checking or savings account when the client's name appears on a signature card, but does not have an ownership interest in the account.

  2. Cooperative Distributions (patronage dividends)

EXCEPTION:

Any portion of cooperative distributions that is income from the sale of goods is countable income.

  1. Withdrawals from medical savings, health reimbursements and flexible spending accounts.

  2. Foster Care Payments, including continuing education and job-training through PATH Inc.

  3. Subsidized Guardianship Payments.

  4. Money received from a benefit or fund raiser and disbursed by a third party for a household expense.

EXCEPTION:

If the disbursement is given or made available to a household member the money is counted as unearned income.

  1. When a member of the household serves as a representative payee for Federal benefits (SSI, Social Security, Veterans Benefit) for an individual who is not a member of the household, the income is not considered available to the household.

  2. All income, allowances, and bonuses received as a result of participation in the Job Corps Program.

  3. Refunds of a deposit from rental units, apartments, storage units, utility companies, child care providers, etc.

  4. Homestead Tax Credit refunds.

  5. Property Tax relief.

  6. Loans that require repayment. A loan must be verified with a written agreement between the parties executed at the time the loan was agreed upon.

  7. When monies are received and used by a household for the care and maintenance of a non-household member, the portion of the payment that is identified as belonging to the non-household member is excluded.

    If the non-household member's portion cannot be identified, the payment is divided equally among the individuals for whom the payment is intended and the exclusion is applied to either the portion or the amount actually used for the non-household member's care, whichever is less.

Example:

A parent is receiving court ordered child support of $350 per month for two children (prorated to $175 per child). The parent reports that one of the children went to live with the grandparents. The parent sends $175 of the monthly child support check to the grandparents for the care of the child. Only $175 would be counted as unearned income to the parent and remaining child. The $175 sent to the grandparents is not counted as income to the parent.

If the parent does not send any of the $350 monthly child support to the grandparents, the $350 is counted as unearned income for the parent and remaining child.

If the parent sends $200, only the prorated $175 would be excluded.

  1. Census Income.

  2. Trade Adjustment Assistance (TAA) - The following payments made to individuals under the Trade Adjustment Assistance (TAA) Extension Act of 2011:
  • If the individual is participating in the JOBS Program, the Employment Contractor must be notified of the individual's receipt of these funds.
  • If the individual is participating in the JOBS Program, the Employment Contractor must be notified of the individual's receipt of these funds.
  • If the individual is requesting reimbursement for a health insurance premium from TANF, TANF policy will only reimburse the difference between the actual premium amount and the amount of tax credit the individual receives and only that premium for coverage of a TANF eligible unit member.
  1. Earned or unearned income set aside for the fulfillment of a Plan for Achieving Self-Support (PASS) under Title XVI of the Social Security Act (SSI).

  2. The portion of monetary gifts under $500.00 per month received by household members for special occasions such as birthdays, graduation, holidays, etc.

  3. Gift Cards and Gift Certificates.

  4. SSI (Supplemental Security Income) Benefits - Recipients of SSI, including presumptive SSI, are not included as members of the TANF household and their income is not used to determine the benefit. If the individual is receiving a zero SSI benefit, the individual is not considered as receiving SSI benefits for TANF purposes and the individual and the income received is included in the household.

  5. Volunteer Placement Program - Children in the Volunteer Placement Program are not foster care placements and the parents retain care, custody, and control of the child. The child could be placed in a facility that is not inpatient care including PATH and county foster families or facilities, i.e. Manchester House, Dakota Boys Ranch, Prairie learning Center, etc.
    Children in the Volunteer Placement Program are considered temporarily out of their home with a plan to return to their parental unit. The length of stay in a facility varies depending on the needs of the child. Children placed into a facility under the Volunteer Placement Program are eligible for the $45.00 clothing allowance provided all other factors of eligibility are met for the TANF Program. The out-of-home payment will be part of the TANF benefit paid to the parent/caretaker.

  6. National School Lunch Act provides assistance to individual through the following programs:

    School Lunch Program
    Summer Food Service Program for Children
    Commodity Distribution Program
    Child and Adult Care Food Program (reimbursements to child adult care providers such as Heartland)

    (42 USC 1760 (e))

  7. Child Nutrition Act provides assistance to children through the following programs:

    Special Milk Program
    School Breakfast Program
    Special Supplemental Food Program for Women, Infants, and Children (WIC)

    (42 USC 1780 (b))

  8. Uniform Relocation Assistance and Real Property Acquisition Policy Act establishes minimum standards for federally funded programs and projects that require the acquisition of real property (real estate) or displace persons from their homes, businesses, or farms.

    (42 SC 4636)

  9. All payments to volunteers under the National and Community Service Act which includes payments from the following programs:

42 USC 5044 (f)

42 USC 5058

  1. Disaster Relief Act - Federal major disaster and emergency assistance and comparable disaster assistance provided by States, local governments, and disaster assistance organizations.

    This includes payments such as Federal Emergency Management Assistance (FEMA) payments, Emergency Unemployment Benefits, Red Cross and Salvation Army.

    (42 USC 5155 (d))

  2. Allowances, earnings, or payments received under WIOA or Youthbuild.

EXCEPTIONS:

Earnings of:

  • minor parents not residing with a caretaker within the 5th degree of relationship are counted
  • minor parent who reside with a caretaker within the 5th degree of relationship and does not attend school full-time are counted, or
  • dependent children under the age of 18 who are not full-time students are counted.
  1. Low-Income Home Energy Assistance Act - LIHEAP payments paid directly or indirectly on behalf of the LIHEAP household.

    42 USC 8624 (f)

  2. Supplemental Nutrition Assistance Program (SNAP) – Benefits received from SNAP are excluded.

    7 USC 2017 (b)

  3. Child Care and Development Block Grant Act - Child Care Assistance Program payments paid directly or indirectly on behalf of the Child Care Assistance Unit.

    Payments received by providers are counted as self-employment income.

    (42 USC 9858q)

  4. Federal funded Student Financial Assistance - All educational loans, grants, scholarships and stipends that do not require work participation and wages earned under a work study program. State and local funded Student Financial Assistance.

EXCEPTION:

Any stipend received while attending training that is specifically identified to cover the cost of daily living expenses must be counted as unearned income, as it is intended to cover the same basic needs as those provided under TANF.

Title IV aid includes:

Aid that is federally funded but not under Title IV includes:

Aid that is not federally funded includes:

20 USC 1087uu

  1. Reduction in basic pay for veteran's educational assistance - Any amount by which the basic pay of an active duty or selected reserve member is reduced for educational assistance.

    The funds are a pre-tax deduction from the service member's gross pay and are identified as a Montgomery GI Bill (MGIB) deduction.

    38 USC 3011 (b)(3) and 38 USC 3012 (c)(3)

  2. Payments to certain United States citizens of Japanese ancestry, resident Japanese aliens, and eligible Aleuts made under the Restitution for World War II Internment of Japanese-Americans and Aleuts.

50 USC appendix 1989b-4(f-2)

50 USC appendix 1989c-5(d-2)

  1. Radiation Exposure Compensation Act.

    42 USC 2210 (h) (2)

  2. State or Federal tax refunds and Earned Income Tax Credits (EITC).

    26 USC 6409

  3. Crime Act - compensation paid through a crime victim’s compensation program.

    (42 USC 10602 (c))

  4. Individual Development Accounts - funds (including interest accruing) in an individual development account.

    (42 USC 604 (h) (4) & 42 USC 604nt Section 415)

  5. Vietnam Veterans - the following payment made to the children of Vietnam veterans:

(38 USC 1833 (c))

  1. P.L. 108-447 - Combat Pay

    Additional monies received by a household as the result of the deployment of a service member to a designated combat zone.

    To determine the amount of service member's income that will be disregarded, compare the amount received before deployment and the amount received after the deployment. The difference between the two amounts is the amount that will be disregarded.

    Combat Zone Tax Exclusion Areas - Executive Order 12744 (effective January 17, 1991).

    Arabian Sea Portion that lies north of 10 degrees North Latitude and West of 68 degrees East Longitude

Direct Support of EO 12744

Direct Support of EO 13239

Executive Order 13119 (effective March 24, 1999)

Public Law 105-21 Establishing Kosovo as Qualified Hazardous Duty Area (March 24, 1999)