Current through 2024-38, September 18, 2024
1.
GENERAL RULE
For purposes of determining eligibility and benefit level
the income already received during the certification period and any income
which can be reasonably anticipated during the remainder of the certification
period is taken into account. If the amount of income anticipated or month of
receipt is uncertain, that portion of the household's income which is uncertain
is not counted. For example, a household anticipating income from a new source,
such as a new job or pending TANF benefits, may not be sure of the timing or
amount of the first payment. Such income is not anticipated unless there is
reasonable certainly concerning the month in which it will be received and what
the amount will be. When the exact amount is not known, only that portion of it
which can be anticipated with reasonable certainty is considered as
income.
NOTE: For households with members who are
funded by Federal and State funds, see Section 44411.
The best estimate of income is based on the recipient's
and the Department's reasonable expectations and knowledge of current, past and
future circumstances. The best estimate of income, is based on the concepts of
significant and non-significant income changes and the income averaging
techniques described below. The method of determining the best estimate
of income must be clearly documented in the case record.
2.
SIGNIFICANT INCOME
CHANGES
A. Significant income changes
are defined as changes in sources of income or in amounts greater than $125 per
month which are:
(1) expected to continue into
the future; or
(2) short term, but
will continue long enough to affect at least one allotment.
B. Some examples of significant
income changes include starting a job, gaining a new source of unearned income,
losing a job or unearned income, changes in the rate of return on investments
that are expected to persist, permanent or long term changes in hours worked
and/or rate of pay, permanent full-time employment, beginning to work
piece-work or overtime, promotion, changing employers, short term plant
closings or periods of absence without compensation, and other similar
changes.
C. The Department shall
use information about past significant changes of a continuous nature in
estimating future income. For example, if an individual received an increase in
the hourly wage in the recent past, the wages received prior to the pay raise
are not used in determining the best estimate of future income. An average of
the hours worked per week multiplied by the new hourly
wage must be used in determining the estimate.
3.
NON-SIGNIFICANT INCOME
CHANGES
A. Non-significant income
changes are defined as temporary, very short term variations in the earned or
unearned income amount caused by a situation which is not of an ongoing nature
or which is of a variable nature.
B. Some examples are changes in the rate of
return on investments that are not expected to persist, previously anticipated
fluctuations in wages, occasional changes in wages due to unpredictable
overtime, unpaid absences, or occasional illness.
C. When non-significant income changes occur
during the certification period, they often do not impact eligibility or
benefits.
D. Unless the income is
averaged, it is counted as income only in the month it is received. Whenever a
full month's income is anticipated but is to be received on a weekly or
biweekly basis, it is converted to a monthly amount by multiplying weekly
amounts by 4.3 and biweekly amounts by 2.15. When less than a full month's
income is anticipated, the actual amount of anticipated monthly income is
used.
E. With the exception of
migrant farm worker households which are destitute, households may elect to
have income averaged. Households which, by contract or self-employment derive
their annual income in a period of time shorter than a year have that income
determined in accordance with Section 444-2.
F. Households receiving scholarships,
deferred loans, or other educational grants have such income averaged over the
period for which it was provided. (See Section 444-7(2).)
G. Nonrecurring lump sum payments are counted
as assets starting in the month they are received. They are not counted as
income in determining SNAP eligibility and benefits amounts.
H. Annuities and lottery winnings that are
paid annually are averaged over a 12 month period.
I. Wages held at the request of the employee
are considered income in the months they would otherwise have been paid. Wages
held by an employer as a general practice are not counted until they are
expected to be received. Advances on wages are counted when reasonably
anticipated.
J. Households
receiving income on a recurring monthly or semimonthly basis do not have their
countable monthly income varied merely because of changes in mailing cycles or
pay dates or because weekends or holidays cause additional payments to be
received in a month.
4.
INCOME AVERAGING
The steps below are followed to determine the best
estimate of income.
A. All earned and
unearned income received within a minimum time frame of four weeks immediately
preceding the application or review must be verified even if not all four
weeks' income is used to calculate the best estimate.
If not all pay stubs for the four week period are
available, but the gross income can be verified for each pay interval through
year-to-date information, the four week period's income is deemed to be
verified.
B. The Department
shall determine, through a careful review of the income documentation and
discussion with the individual, if there have been any significant income
changes during the four week period. If there have been, and the changes are of
a continuous nature, the changes must be taken into consideration when
determining the best estimate. For example, if an individual has received an
increase in hourly rate, the new hourly rate must be multiplied by the
appropriate number of hours (either stable or averaged) to determine the
anticipated income.
C. The
Department shall determine if any significant income changes are expected in
the future. If yes, and the exact nature of the significant income change is
known, the Department shall use that information in determining the best
estimate of income.
D. The
Department shall determine, through careful review of the documentation, the
case record, and discussion with the individual if any of the income received
is not expected to be representative of the future. For instance, the first pay
check of new employment may not represent a full pay period, or a missing
week's income may represent a summer plant closing which is not anticipated to
occur in the next certification period. Non-representative income (or lack of
income) is not used in calculating the best estimate. The case record must be
clearly documented to explain why any income was not used, and to show how the
best estimate was figured.
E. If
income fluctuates to the extent that a four week period is not expected to
provide the best estimate of income for the future review period, the
Department may use information covering a longer period of time. If the income
is from self-employment the Department may use the most recent tax year's
income.
F. The final step is to
average the income representative for the eligibility period. If there were
significant income changes, averaging is used only for the period of time not
affected by the significant change-e.g., if the rate of pay increased, only the
hours worked are averaged. The average hours multiplied by the increased rate
of pay is then used to determine eligibility and benefits for the one time and
prospective periods.
NOTE: If income does not fluctuate it is not
necessary to average the income.
