Income Exclusions 430-05-50-25-03

(Revised 07/01/18 ML3528)

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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 month they are received, unless specifically excluded by Federal Law.

  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 430-05-50-20-10-10- This section includes the policy regarding 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:

Per Diem for food is considered a normal living expense and cannot be excluded.

  1. Child support or spousal support of a TANF recipient assigned to the Child Support Division.

  2. Children’s earned income.

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of payments from investments, annuities, pensions, and other retirement plans will be considered countable income when withdrawn on a regular basis.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

EXCEPTION:

Foster care payments when the foster child is included as a household member are counted.

  1. Subsidized Guardianship Payments.

EXCEPTION:

Subsidized Guardianship payments when the child is included as a household member.

  1. 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.

  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. Trade Adjustment Assistance (TAA) - The following payments made to individuals under the Trade Adjustment Assistance (TAA) Extension Act of 2011:
  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. Monetary gifts received by household members for special occasions such as birthdays, graduation, holidays, etc.

  3. Infrequent or irregular income, both earned and unearned, that cannot be reasonably anticipated.

  4. Gift Cards which were given as gifts and Gift Certificates.

  5. 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))

  1. 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))

  1. 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 USC 4636)

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

EXCEPTION:

Americorp VISTA income is counted as earned income if the household was not receiving SNAP at time they took their oath to join Americorp VISTA.

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.

EXCEPTION:

Earnings of individuals who are 19 or over or under 19 and not under parental control are counted as earned income.

  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 is also excluded by State Policy.

EXCEPTION

Educational-related income from internships, or stipends, teaching assistantships, or fellowships which require work participation to receive the income is counted as earned income.

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. The Older Americans Act provides assistance to individuals through the following programs:
  1. 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)

  2. Radiation Exposure Compensation Act

    42 USC 2210 (h) (2)

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

    26 USC 6409

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

    (42 USC 10602 (c))

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

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

  6. 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

Executive Order 13239 (effective September 19, 2001

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)

Public Law 104-117 Establishing a Qualified Hazardous Duty Area (November 1995)