New Jersey Administrative Code
Title 10 - HUMAN SERVICES
Chapter 69 - AFDC-RELATED MEDICAID
Subchapter 10 - INCOME
Section 10:69-10.40 - Evaluating LRR's capacity to support
Universal Citation: NJ Admin Code 10:69-10.40
Current through Register Vol. 56, No. 18, September 16, 2024
(a) The LRR's capacity to support shall be based on his or her total gross monthly income, including all income of whatever kind and from whatever source except as stated in this section.
(b) Income determination rules are as follows:
1. "Gross
income" means income before deductions, or the net profit from a business, farm
or profession before income and other personal taxes are deducted. "Net profit"
is the total revenue less the cost of producing the revenue. Business
deductions which are allowable for income tax purposes may be recognized as
expenses of producing this revenue.
2. The average income for the most recent
period of four months may be accepted as satisfactory evidence of the average
for the last year, but the income record for the entire 12-month period may be
considered if the individual so requests and makes the necessary information
available.
3. When an LRR is
receiving food or lodging or both as part of his or her income, the total gross
income shall be determined as follows:
i. The
gross cash payment plus the monetary value of the maintenance received as used
by the employer for tax purposes (the employer's monetary evaluation for
payment of Social Security and withholding taxes).
4. When an LRR has roomer-boarders living in
the home, 10:69-10.12(c)
or 10.20 shall be used to determine the net income to the LRR from such roomers
or roomer-boarders.
5. When an LRR,
other than a natural or adoptive parent, is living in the home of an eligible
unit and makes payment to the eligible unit toward household expenses, that
payment shall be treated as income available to the eligible unit in accordance
with 10:69-10.12(c),
if extensive personal services are provided, or N.J.A.C. 10:69-4.12. Such
payment does not otherwise affect the LRR's evaluated capacity, if any, to
contribute to support.
6. When an
LRR has an emancipated child living in the home, such child shall be considered
as a roomer or roomer-boarder.
(c) Whenever an LRR or his or her dependents are the recipients of benefits, current or accrued, which are granted for and restricted to a specific purpose in accordance with the requirements of the law or contract under which they are provided, such as education, relocation, rehabilitation, medical care, and so forth, such benefits shall not be included in the income of the LRR for the purpose of computing his or her evaluated capacity to support.
(d) The following types of extraordinary expenses shall be considered in the manner specified, as affecting the LRR's capacity to contribute to the support of the eligible unit:
1. When an LRR is supporting
or making contributions to support (including judicial orders for support) of a
parent, child, separated or divorced spouse who is not living in the home of
the LRR, the actual amount of such contribution shall be subtracted from the
LRR's gross monthly income. These persons shall not be included in the
determination of the LRR's family size.
2. Where the average monthly cost of medical,
dental, and other medical services exceeds the appropriate amount shown in the
following schedule of medical expenses, the amount of the excess shall be
subtracted from the LRR's gross monthly income:
| LRR's | Monthly medical |
| family size | expenses |
| 1 | $ 45 |
| 2 | 60 |
| 3 | 75 |
| 4 | 90 |
| 5 | 100 |
| 6 or more | 110 |
3. When an
LRR, whether before or following the determination of his or her capacity to
support, is required to incur debts due to catastrophic events over which the
LRR had no control (for example: fire, or flood), other than medical, the
verified monthly amount of payments necessary to liquidate these debts shall be
subtracted from his/her gross monthly income.
i. Whenever an LRR has been determined not to
have a capacity to support for a specified period in order to liquidate
indebtedness due to catastrophic events, the agency shall reevaluate the LRR's
capacity to support at the date set for full payment of the debt.
4. If the LRR is providing
educational expenses for one or more of his or her dependents for whom free
educational facilities are not available, such expenses shall be deducted from
the LRR's gross monthly income as follows:
i.
When the individual is being maintained in the LRR's home, subtract the
verified cost of tuition, fees, books and transportation, prorated on a
12-month basis.
ii. When the
individual is being maintained away from home, subtract the above items plus
any cost of maintenance in excess of $ 1,075 per annum, prorated on a 12-month
basis.
Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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