Income Anticipation 430-05-50-15-10

(Revised 01/01/04 ML2893)

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Income already received or future income that can be reasonably anticipated, will be taken into account at the time of certification. If the amount or receipt of income is uncertain, that portion of the household's income that is uncertain will not be counted. That portion which can be anticipated with reasonable certainty is counted as income.

In cases where the receipt of income is reasonably certain but the monthly amount may fluctuate, the household may elect to income average, if paid once or twice a month.

The worker must establish a history for a case when income is not received on a regular ongoing basis. History is defined as two months of known information. If a household has received income for two months, that income must be anticipated and counted prospectively.

Examples:

On call income or child support received on an irregular basis.

Households must be informed to report all changes in the source of income or in the amount of income exceeding $50 unearned or $100 earned.

Exception:

TANF grant changes.


Calculation:	Example: Documentation must support the amount of income used.
March 20 $400.00 April 5 425.00 $825.00	a) Current income Household initially applies on April 5 and is interviewed on April 9. At interview household provides March 5 check - $250.00 gross income, March 20 check - $400.00 gross income, and April 5 check - $425.00 gross income. During the interview household indicates that March 5 check is short hours due to inclement weather. Household anticipates May income to be the same as March 20 and April 5 checks. These two checks - totaling $825.00 gross income are used to determine April and May benefits.
April 5 $350.00 x2 $700.00	b) Decreased income Household reports a decrease in wages on April 5 and verifies the March 5 check - $500.00 gross income, March 20 check - $500.00 gross income, and April 5 check - $350.00 gross income. The household provides verification that the decrease in hours is ongoing due to the employer cutting back all employees’ hours. Take April 5 check times two to anticipate May gross income of $700.00. The April 5 check verifies the decrease in hours unless the worker, using prudent judgement, believes it is necessary to obtain additional verification.
March 5 $300.00 March 20 450.00 $750.00	c) No change - Base Month Household verifies actual March income and provides March 5 check - $300.00 gross income, March 20 check - $450.00 gross income, and April 5 check - $190.00. The household indicates March income is what they anticipate for the month of May. March income totaling $750.00 gross income is used to determine May benefits.
April 5 $412.00 Divided by 5.15 80 Hours $5.40 x80 $432.00 $432.00 x2 $864.00	d) Increased income Household provides March 5 check - $412.00 gross income, March 20 check - $412.00 gross income, and April 5 check - $412.00 gross income. The household reports a pay raise from $5.15 per hour to $5.40 per hour that will be reflected on April 20 paycheck. Household indicates no change in 40 hours per week. Take April hours from April 5 check times the new pay rate times two to anticipate May gross income of $864.00.
March 20 $400.00 April 5 425.00 $825.00 March 5 $250.00 March 20 400.00 April 5 425.00 $1,075.00 Divided by 3 $358.33 x2 $716.99 April 5 $425.00 April 20 280.00 $705.00	e) On-call income Household initially applies on April 5 and is interviewed on April 9. At interview household reports on-call employment and provides March 5 check - $250.00 gross income, March 20 check - $400.00 gross income, and April 5 check - $425.00 gross income. During the interview household indicates that they do not have any idea of what, if any, earnings they will have on the April 20 check or for the month of May. The worker must question the applicant further regarding any hours worked since the last pay period, do they normally receive two checks each month, etc. Based on the information obtained in the interview and prudent worker judgment has the following options: Take the two most current checks, March 20 check - $400.00 gross income and the April 5 check - $425.00 gross income and use them for April and May. Total the three checks, March 5 - $250.00 gross income, March 20 check - $400.00 gross income and April 5 check - $425.00 gross income. Divide the total $1,075.00 by three to arrive at the average of $358.33. The average of $358.33 is multiplied by two for a total of $716.99. This amount is used for April and May. Information from the household indicates that the household anticipates the April 20 check will be approximately 40 hours at $7.00 per hour. The April 5 check - $425 gross income and the anticipated April 20 check of $280.00 gross income is used for April and May.
March 6 $175.00 March 13 115.00 March 20 210.00 March 27 166.00 $666.00 $666.00 Divided by 4 $166.50 $166.50 x5 $832.50	f) Extra paycheck Household initially applies on April 5 and is interviewed on April 9. The household is paid weekly and verifies March earnings of March 6 check - $175.00 gross income, March 13 check - $115.00 gross income, March 20 check - $210.00 gross income, March 27 check - $166.00 gross income, and April 3 check - $195.00 gross income. The household anticipates April earnings to be the same as March and anticipates no changes for May. In reviewing the pay dates, the worker discovers the household will receive five checks in May. March verified gross income is $666.00 and is used when determining April benefits. When calculating May benefits, the worker must take March earnings of $666.00 divided by the four checks received in March ($166.50) times five checks the household will receive in May ($832.50). This amount is used when determining May benefits.

Calculation:

Example: Documentation must support the amount of income used.

March 20 $400.00

April 5 425.00

$825.00

a) Current income

Household initially applies on April 5 and is interviewed on April 9. At interview household provides March 5 check - $250.00 gross income, March 20 check - $400.00 gross income, and April 5 check - $425.00 gross income. During the interview household indicates that March 5 check is short hours due to inclement weather. Household anticipates May income to be the same as March 20 and April 5 checks. These two checks - totaling $825.00 gross income are used to determine April and May benefits.

April 5 $350.00

$700.00

b) Decreased income

Household reports a decrease in wages on April 5 and verifies the March 5 check - $500.00 gross income, March 20 check - $500.00 gross income, and April 5 check - $350.00 gross income. The household provides verification that the decrease in hours is ongoing due to the employer cutting back all employees’ hours.

Take April 5 check times two to anticipate May gross income of $700.00. The April 5 check verifies the decrease in hours unless the worker, using prudent judgement, believes it is necessary to obtain additional verification.

March 5 $300.00

March 20 450.00

$750.00

c) No change - Base Month

Household verifies actual March income and provides March 5 check - $300.00 gross income, March 20 check - $450.00 gross income, and April 5 check - $190.00. The household indicates March income is what they anticipate for the month of May. March income totaling $750.00 gross income is used to determine May benefits.

April 5 $412.00

Divided by 5.15

80 Hours

$5.40

x80

$432.00

$864.00

d) Increased income

Household provides March 5 check - $412.00 gross income, March 20 check - $412.00 gross income, and April 5 check - $412.00 gross income. The household reports a pay raise from $5.15 per hour to $5.40 per hour that will be reflected on April 20 paycheck. Household indicates no change in 40 hours per week. Take April hours from April 5 check times the new pay rate times two to anticipate May gross income of $864.00.

March 20 $400.00

April 5 425.00

$825.00

March 5 $250.00

March 20 400.00

April 5 425.00

$1,075.00

Divided by 3

$358.33

$716.99

April 5 $425.00

April 20 280.00

$705.00

e) On-call income

Household initially applies on April 5 and is interviewed on April 9. At interview household reports on-call employment and provides March 5 check - $250.00 gross income, March 20 check - $400.00 gross income, and April 5 check - $425.00 gross income. During the interview household indicates that they do not have any idea of what, if any, earnings they will have on the April 20 check or for the month of May. The worker must question the applicant further regarding any hours worked since the last pay period, do they normally receive two checks each month, etc.

Based on the information obtained in the interview and prudent worker judgment has the following options:

Take the two most current checks, March 20 check - $400.00 gross income and the April 5 check - $425.00 gross income and use them for April and May.
Total the three checks, March 5 - $250.00 gross income, March 20 check - $400.00 gross income and April 5 check - $425.00 gross income. Divide the total $1,075.00 by three to arrive at the average of $358.33. The average of $358.33 is multiplied by two for a total of $716.99. This amount is used for April and May.
Information from the household indicates that the household anticipates the April 20 check will be approximately 40 hours at $7.00 per hour. The April 5 check - $425 gross income and the anticipated April 20 check of $280.00 gross income is used for April and May.

March 6 $175.00

March 13 115.00

March 20 210.00

March 27 166.00

$666.00

Divided by 4

$166.50

$832.50

f) Extra paycheck

Household initially applies on April 5 and is interviewed on April 9. The household is paid weekly and verifies March earnings of March 6 check - $175.00 gross income, March 13 check - $115.00 gross income, March 20 check - $210.00 gross income, March 27 check - $166.00 gross income, and April 3 check - $195.00 gross income. The household anticipates April earnings to be the same as March and anticipates no changes for May. In reviewing the pay dates, the worker discovers the household will receive five checks in May.

March verified gross income is $666.00 and is used when determining April benefits.

When calculating May benefits, the worker must take March earnings of $666.00 divided by the four checks received in March ($166.50) times five checks the household will receive in May ($832.50). This amount is used when determining May benefits.