Calculating the Amount of Claims 430-05-80-30

(Revised 06/01/15 ML3440)

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When completing the claim, eligibility items determined to be in error must be corrected using circumstances that should have been used at:

• application; or
• review; or
• when a change was reported/discovered; or
• should have been reported.

If income conversion applies, the corrected converted amount must be used.  This information is used for each month of the claim, taking into consideration any other changes reported during that time.

 

Examples:

1. Ongoing SNAP household reports and verifies earned income on March 10.  The earned income resulted in the household being over the 130% GIL, not eligible for a benefit and the household indicated it will continue.  The worker failed to act on this reported and verified change.  

On May 27, the household reported two children with no income entered the home and provided the necessary verification to add them.  Adding the children results in the household no longer exceeding the 130% GIL and is eligible for a benefit.  

When adding the two children, the worker discovers the failure to act on the March 10 change.  The change in earned income would have resulted in case closure the end of March.  April and May are total overpayments.  There is no claim for June as the household reported and verified a change resulting in continued eligibility.   Even if the worker takes their ten days, a supplement must be issued for June.   

2. A household initially applied on April 26.  At the interview on May 5, the mother reported her children in her home.  The case was processed on May 5.  The worker found out a few days later the children were placed into foster care the beginning of April and were not in the home at the time of the application or interview.  

The worker completes a claim for April and May and the case is set to close the end of May as income exceeds the 130% GIL for the household size and not eligible for a benefit.  

On May 27, the mom reports and verifies the children have returned to her home.  Based on the additional household members, income no longer exceeds the 130% GIL and is eligible for a benefit.  The case must remain open for June.  Even if the worker takes their ten days, a supplement must be issued for June.    

 

When correcting benefits for a household failure to report or timely report and the resulting change would result in an underpayment instead of a claim, benefits are not restored.

When completing a claim for expenses, only the incorrect expenses are changed. All other expenses remain unchanged unless there is other information reported timely.

 

Example:

The standard utility allowance was allowed in error. The household also has rent and child care expenses. When completing the claim, the standard utility allowance is removed and the rent and child care expenses remain unchanged, unless there is other information reported timely.

 

When a household fails to report or to timely report earned income or earned self-employment income, the earned income deduction is not allowed when establishing the overissuance. The Earned Income Penalty Violation Code (PV) is entered on the EAIN or SEEI screen for only the earned income or earned self-employment income not reported or not reported in a timely manner.

Examples:

1. It is discovered at review that a household’s actual income exceeded the 130% GIL in month two of the review period and the household was not eligible for a benefit.   The household had until the 10th of month three to report and did not.  The household’s income exceeded the 130% GIL in months three and four, was under the 130% GIL in month five, and was over the 130% GIL in month six.  The household reported no changes in income until the review.  Months four, five, and six are total overpayments because the case should have closed at the end of month three.
2. A household initially applies on October 2 and reports and verifies income for the husband.  No income is declared for the wife. The application is approved on October 14 and the household is certified from October 2 through March. In January, the worker discovers the wife had income at the time of initial certification and it was never reported.  The wife is paid every other Friday.  In December the wife also received a raise, but the raise would not have put the household over the gross income limit.

In computing the amount of the overissuance for October, the verified amount of income that the wife was receiving at the time of certification is used.  Since the wife would not have received all of her October income at the time the application was approved, September converted income is used to determine the claim for October.  In computing the amount of the overissuance for any subsequent month, September converted income would also be used.  The December raise would be disregarded, as it did not put the household over the gross income limit.  The claim would be for the months of October through January.

3. A household reports and verifies September and October earnings at initial certification in October and is certified from October through March.  The household is paid on the first of each month.  The worker incorrectly used September income.  As all income from the month of application was available, October income should have been used.  In March, the worker discovers the error and also learned the household received a pay raise in December.  The raise put the household over the 130% GIL for their household size.

In computing the amount of the overissuance for October through January, the worker would recompute the household’s benefits based on October income.   As the pay raise in December put the household’s income over the 130% GIL, the household would have had until the 10th of January to report the change.  The case should have closed the end of January as the household was not eligible with income over the 130% GIL.  The claim for February and March is based on a total overpayment.  

4. Household was initially certified in November and was over the 130% GIL but eligible for a benefit. In month three a household member obtained employment that was discovered at review in April.  There is no claim in this case as the household was not required to report when income exceeded the 130% GIL for the household size.  Claims are only completed for mandatory reportable changes.
5. At review in April, it is discovered that household income exceeded the 130% GIL in January.  Based on information obtained, the household had until February 10th to report that income exceeded the 130% GIL.  In determining if a claim exists for March and April, the household’s income exceeded the 130% GIL for its household’s size.  However, the household was eligible for a benefit for both March and April.  There is no claim as the household remained eligible and had the income been reported, would have resulted in a decrease in benefits.

When a combination TANF/SNAP household fails to report income as required, only the unreported income is acted on when creating a SNAP claim. Any month where the unreported earnings caused the TANF benefit to change would be used and coded PV on the EAIN screen.

The TANF benefit amount would not be changed when calculating the claim.

EXAMPLE:

At review in February 2015, it is discovered a SNAP/TANF household failed to report earned income for the past year. The earnings began in January 2014. Verification of the unreported income has been received.

When reworking the TANF benefit using the unreported income, some months resulted in TANF overpayments and other months there were no changes to the TANF benefit.

The January 2014 wages which affected the March 2014 TANF benefit the household would have received is used when calculating the SNAP claims using the PV code.

The unreported income from any months that caused the TANF benefit to change would be used when calculating all SNAP claims for the previous twelve months. The corrected TANF benefit would not be used when calculating the claims.

 

Trafficking Claims

Claims from trafficking related offenses will be the amount of the trafficked benefits as determined by:

1. the individual’s admission;
2. adjudication; or
3. the documentation that forms the basis for the trafficking determination.