New Jersey Administrative Code
Title 10 - HUMAN SERVICES
Chapter 87 - NEW JERSEY SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (NJ SNAP) MANUAL
Subchapter 5 - FINANCIAL ELIGIBILITY; INCOME
Section 10:87-5.9 - Identification of income exclusions
Universal Citation: NJ Admin Code 10:87-5.9
Current through Register Vol. 56, No. 18, September 16, 2024
(a) Only the following shall be excluded from household income; no other income shall be excluded:
1. Any gain or benefit, which is
not in the form of money payable directly to the household shall be excluded,
including non-monetary or in-kind benefits such as meals, clothing, public
housing or produce from a garden;
2. A payment made in money on behalf of a
household shall be considered a vendor payment when a person or organization
outside of the household used its own funds to make a direct payment to either
the household's creditors or a person or organization providing a service to
the household. For example, if a relative or friend who is not a household
member pays the household's rent directly to the landlord, the payment is
considered a vendor payment and is not counted as income to the household.
i. Rent or mortgage payments made to
landlords or mortgagees by HUD, or by any State or local housing authority, are
vendor payments and are excluded.
ii. Payments by a government agency to a
child care institution to provide day care for a household member are excluded
as vendor payments.
iii. Payments
of money which are not made to a third party, but are made directly to a
household, are counted as income and are not excluded as vendor
payments.
iv. Moneys which are
legally obligated and otherwise payable to the household but which are diverted
by the provider of the payment to a third party for a household expense shall
be counted as income and not excluded as a vendor payment. The distinction is
whether or not the person or organization making the payment of behalf of the
household is using funds which otherwise would have to be paid to the
household. Such funds include wages earned by a household member and therefore
owed to the household, a public assistance grant to which the household is
legally entitled, support and alimony payments in amounts which legally must be
paid to a household member, and student educational assistance that is provided
on behalf of the household to a third party for living expenses.
(1) If any employer, agency, former spouse,
or other person who owes these funds to a household diverts them instead to a
third party to pay for a household expense, these payments shall be counted as
income to the household. Diverted educational assistance payments made to the
household for living expenses shall also be counted.
(2) If an employer, agency, former spouse, or
other person makes payments for household expenses to a third party from funds
not owed to the household, these payments shall be considered as vendor
payments and thus excluded. Examples are as follows:
(A) Example A: Wages earned by the household
member that are garnished or diverted by an employer and paid to a third party
for a household's expenses, such as rent, shall be considered income. However,
if the employer pays a household's rent directly to the landlord in addition to
paying the household its regular wages, this rent payment shall be considered a
vendor payment and thus excluded. In addition, if the employer provides housing
to an employee, the value of the housing shall not be counted as
income.
(B) Example B: All or part
of a public assistance grant which would normally be provided in a money
payment to the household, but which was diverted to third parties or to a
protective payee for purposes such as managing a household's expenses, shall be
considered income to the household. However, payments by the CWA that would not
normally be provided in a money payment to the household, and that are over and
above normal public assistance grants, shall be considered as a vendor payment
and thus excluded if they are made directly to a third party for a household
expense. This rule applies even if the household has the option of receiving a
direct cash payment.
(C) Example C:
Money deducted or diverted from a court-ordered support or alimony payment (or
other binding written support or alimony agreement) to a third party for a
household expense shall be considered as income. However, payments specified by
the court order or other legally binding agreement to go directly to the third
party rather than to the household, and support payments not required by a
court order or other legally binding agreement (including payments in excess of
the amount specified in a court order or written agreement) which are paid to a
third party rather, than the household shall be considered as a vendor payment
and thus excluded, even if the household agrees to the arrangement.
v. An emergency PA or
GA payment provided to a third party on behalf of a household containing a
migrant or seasonal farmworker shall be treated as an excluded vendor payment,
provided that the farmworker is in the jobstream;
3. Utility allowance payments, rebates and
reimbursements to the individual, the utility or the landlord are excluded from
countable income.
i. When a public housing
authority receives a household's HUD utility allowance and applies it toward
the household's rent, the "net" rent that the household must pay shall be
considered the rental expense for NJ SNAP purposes. The HUD utility allowance,
in this case, shall not be considered when determining (per
10:87-5.10(a)7
iv(6)) whether the household is entitled to a HCSUA or LUA;
4. A WFNJ payment, which is not
made directly to the household, but paid to a third party on behalf of the
household to pay a household expense, shall be considered an excludable vendor
payment and not counted as income to the household, if the payment is for:
i. Medical assistance;
ii. Child care assistance;
iii. WFNJ emergency assistance (including,
but not limited to housing and transportation payments) for migrant or seasonal
farmworker households while they are in the job stream;
iv. WFNJ/GA housing assistance from a State
or local housing authority;
v.
WFNJ/GA assistance which cannot be made directly to the household in the form
of cash; or
vi. WFNJ emergency and
special assistance provided to a third party on behalf of a household, which is
not otherwise specifically excluded from countable income. To be considered
emergency or special assistance under this provision, the assistance must be
provided over and above the normal WFNJ grant, or cannot be provided as part of
the WFNJ grant;
5. Cash
donations based on need which were received on or after February 1, 1988 from
private nonprofit charitable organizations that do not exceed $ 300.00 in a
Federal fiscal year quarter;
6. Any
income in the certification period which is received too infrequently or
irregularly to be reasonably and anticipated but not in excess of $ 30.00 in a
calendar quarter, shall be excluded;
7. Educational loans on which payment is
deferred, grants, work study, scholarships, fellowships, veteran's educational
benefits and the like shall be excluded, provided it meets the criteria at
10:87-5.11;
8. All loans, including loans from private
individuals, as well as commercial institutions, are excluded from income.
Educational loans in which repayment is deferred shall be excluded in
accordance with
10:87-5.11. Any loan on which
repayment must begin within 60 days after receipt of the loan shall not be
considered a deferred repayment loan.
i.
Reverse mortgages are considered loans and are therefore excluded as income.
However, once these funds are placed in an account, they become an available
resource;
9.
Reimbursements for past or future expenses shall be excluded to the extent that
they do not exceed actual expenses and do not represent a gain or benefit to
the household. Reimbursements for normal household living expenses, such as
rent or mortgage payments, personal clothing or food eaten at home are a gain
or benefit and are not excluded.
i. In order
to be excluded, reimbursements must be provided specifically for an identified
expense other than normal living expenses and used for the purpose intended.
When a reimbursement, including a flat allowance, covers multiple expenses,
each expense does not have to be separately identified as long as none of the
reimbursement covers normal living expenses.
ii. That amount of a reimbursement which
exceeds the actual incurred expenses shall be counted as unearned income.
However, reimbursements shall not be considered to exceed actual expenses
unless the provider or the household indicates the amount is
excessive.
iii. Examples of
excludable reimbursements that are not considered to be a gain or benefit to
the household are:
(1) Reimbursements or flat
allowances for job or training related expenses such as travel, per diem,
uniforms, and transportation to and from the job or training site.
Reimbursements which are provided over and above the basic wages for these
expenses are excluded; however, these expenses, if not reimbursed, are not
otherwise deductible. Reimbursements for travel expenses incurred by migrant
workers are also excluded.
(2)
Reimbursements for out-of-pocket expenses of volunteers incurred in the course
of their work.
(3) Medical or
dependent care reimbursements.
(4)
Reimbursements received by households to pay for services provided by Title XX
of the Social Security Act (social services).
(5) Any allowance a county agency provides no
more frequently than annually for children's clothes when the children enter or
return to school or day care, provided the county agency does not reduce the
monthly WFNJ/TANF payment for the month in which the school clothes allowance
is provided. County agencies are not required to verify attendance at school or
day care.
(6) Reimbursements made
to the household at
10:87-10.15 for expenses necessary
for participation in an education component under the NJ SNAP ETP.
iv. The following shall not be
considered as excludable reimbursements:
(1)
No portion of benefits provided under Title IV-A of the Social Security Act, to
the extent that such benefits are attributed to an adjustment for work-related
or child care expenses (except for payments or reimbursements for such expenses
made under an employment, education or training program initiated under Title
IV-A after September 19, 1988) shall be considered excludable; and
(2) No portion of any educational assistance
that is provided for normal living expenses (room and board) shall be
considered a reimbursement excludable;
10. Arrearages on child support and alimony
payments made to the household from a non-household member in the form of a
one-time payment shall be excluded as unearned income and treated as a lump-sum
payment in accordance with
10:87-6.9(d)2;
11. Money received and used for the care and
maintenance of a third-party beneficiary who is not a household member shall be
excluded.
i. If the intended beneficiaries of
a single payment are both household and nonhousehold members, any identifiable
portion of the payment intended and used for the care and maintenance of the
nonhousehold member shall be excluded. If the nonhousehold member's portion
cannot be readily identified, the payment shall be evenly prorated among
intended beneficiaries and the exclusion applied to the nonhousehold member's
pro rata share or the amount actually used for the nonhousehold member's care
and maintenance, whichever is less.
ii. A foster care payment or a kinship
payment shall not be considered as income to the household when the foster
child or kinship child for whom that payment is intended is treated as a
boarder and not included in the household, even when the household receives the
payment directly.
iii. When one
household is responsible for the payment of the rent, but shares the residence
with a second household and receives a partial payment to pay the landlord from
that second household, the household that actually pays the rent is not to have
that partial payment considered as income;
12. Earned income (as defined at
10:87-5.4) of students (as
defined at
10:87-10.2(b)3 )
under 18 years of age shall be excluded. This exclusion will continue to apply
during temporary interruptions in school attendance due to semester or vacation
breaks; provided the child's enrollment will resume following the break.
i. If the child's earnings or amount of work
performed cannot be differentiated from that of other household members, the
total earnings shall be prorated equally among the working members and the
child's pro rata share excluded.
ii. Individuals are considered children for
the purposes of this provision if they are under the parental control of
another household member;
13. The income, either earned or unearned, of
an ineligible student as defined at
10:87-2.3(a)2 i,
shall be excluded.
14. Moneys
received in the form of nonrecurring lump-sum payments including, but not
limited to, income tax refunds, rebates or credits; retroactive lump-sum Social
Security, SSI, public assistance, railroad retirement benefits or other
payments; lump-sum insurance settlements; or refunds of security deposits on
rental property or utilities, shall be excluded. Such payments will be counted
as resources in the month received in accordance with
10:87-4.3(a),
unless excluded by
10:87-4.8(a)17.
i. Any SSI benefits that are direct deposited
into an SSI Dedicated Account shall be treated as a nonrecurring lump-sum
payment, and are excluded from countable income, even if the funds are
disbursed from the account. Interest earned in the account, however, shall be
treated as income for NJ SNAP purposes.
ii. An Early Employment Initiative (EEI)
payment is treated as a lump sum payment and shall be excluded. (See also
10:87-4.1(b) for
persons categorically eligible);
15. The cost of producing self-employment
income shall be excluded. The procedures for computing the cost of producing
self-employment income are described at
10:87-7.3;
16. Any income that is specifically excluded
by any other Federal statute from consideration as income for the purpose of
determining eligibility for the NJ SNAP program shall be excluded. The
following qualify under this provision:
i.
Reimbursements from the Uniform Relocation Assistance and Real Property
Acquisition Policy Act of 1970 ( Public Law 91-646).
ii. Payments received under the Alaska Native
Claims Settlement Act (Public Law (92-203).
iii. Any payment to volunteers under Title II
(RSVP, Foster Grandparents and so forth) of the Domestic Volunteer Services Act
of 1973 ( Public Law 93-113), as amended, shall be excluded. Payments to
volunteers under Title I of that Act (including payments from such Title I
programs as VISTA, University Year for Action and the Urban Crime Prevention
Program) shall be excluded for those individuals receiving NJ SNAP benefits or
PA at the time they joined the Title I program, except that households that
were receiving an income exclusion for VISTA or other Title I subsistence
allowance at the time of conversion to the Food and Nutrition Act of 2008 (
7 U.S.C. §§
2011 et seq.), shall continue to receive an
income exclusion for VISTA for the length of their volunteer contract in effect
at the time of conversion. Temporary interruptions in NJ SNAP participation
shall not alter the exclusion once the initial determination has been made. New
applicants who were not receiving public assistance or NJ SNAP benefits when
they joined VISTA shall have these volunteer payments included as earned
income.
iv. Income derived from
certain submarginal land of the United States that is held in trust for certain
Indian tribes ( Public Law 94-114).
v. Payments of relocation assistance to
members of the Navajo and Hopi Tribes under Public Law 93-531.
vi. Earned income tax credits:
(1) Earned income tax credits received as a
result of Public Law 95-600, the Revenue Act of 1978, which are received before
January 1, 1980; and
(2) Earned
income tax credits received either as a lump-sum or as payments under Section
3507 of the Internal Revenue Code.
vii. Payments or allowances made under any
Federal law for the purpose of energy assistance, except for payments made
under Title IV-A of the Social Security Act. The Home Energy Assistance and HUD
Utility Allowance programs qualify as excluded income under this provision, as
do Federal or State one-time payments for either weatherization or the
emergency repair and/or replacement of heating or cooling devices. A down
payment followed by a final payment, upon completion of the work, shall be
considered a one-time payment for purposes of this provision.
viii. Income derived from disposition of
funds to the Grand River Band of the Ottowa Indians ( Public Law 94-540
).
ix. Payments received by the
Confederated Tribes and Bands of the Yakima Indian Nation and the Apache Tribe
of the Mescalero Reservation from the Indian Claims Commission as designated
under Public Law 94-443.
x.
Payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their
members received pursuant to the Maine Indian Claims Settlement Act of 1980 (
Public Law 96-420).
xi. Any
allowances or payments provided to individuals participating in programs under
the Job Training partnership Act of l982 ( Public Law 97-300) or
AmeriCorps/National Community Service Corps (NCSC) Program. Earnings provided
to individuals participating under JTPA on-the-job training programs shall be
excluded if the participants are under 19 years of age and are under the
parental control of another adult household member, and the programs are
administered under Section 204 (5), Title II, of JTPA.
xii. Any allowances, earnings or payments
provided to individuals under the Senior Community Service Employment Program
(SCSEP) enacted by the Older Americans Act Amendments of 1987 ( Public Law
100-175). Programs funded by Title V moneys include, but are not limited to,
Green Thumb, Inc., National Council on Aging, Inc. (NCOA), National Council of
Senior Citizens' (NCSC) Senior Aide Program, and United Progress, Inc.
(UPI).
xiii. Payments received
under the Civil Liberties Act of 1988 ( P.L. 100-383).
xiv. Amounts deemed necessary for the
fulfillment of a Plan for Achieving Self-Support (PASS) under Title XVI of the
Social Security Act.
xv.
Transitional child care payments made under the Family Support Act of 1988
(JOBS).
xvi. Payments made under
the Radiation Exposure Compensation Act ( P.L. 100-426).
xvii. All payments from the Agent Orange
Compensation Exclusion Act (
P.L.
101-201), retroactive to January 1, 1989.
Payments made from the Agent Orange settlement fund under
Section
10405 of
P.L.
101-239 shall be excluded. Veteran's benefits
authorized under the Agent Orange Act of 1991 (
P.L.
102-4) shall not be excluded by law.
xviii. Payments made to individuals because
of their status as victims of Nazi persecution (
P.L.
103-286) shall be excluded.
xix. Any payment made to an NJ SNAP ETP
participant under
10:87-10.4(c)5
for costs that are reasonably necessary and directly related to participation
in NJ SNAP ETP. These costs include, but are not limited to, dependent care
costs, transportation or other expenses related to work, training or education,
such as uniforms, personal safety items or other necessary equipment and books
or training manuals. These costs shall not include the cost of meals away from
home. The value of any dependent care services arranged under
10:87-10.4(c)6
would be excluded.
xx. Governmental
foster care payments received by households with foster care individuals who
are considered to be boarders under
10:87-2.3(b)6.
xxi. On-the-job training payments under the
Summer Youth Employment and Training Program.
xxii. Payments made under the Crime Act of
1984 to victims of crime ( P.L. 103-322).
xxiii. Payments made under
Section
421 of
P.L.
104-204 for children of Vietnam veterans who are
born with spina bifida.
xxiv.
Payments made under Public Law 100-707, the Robert T. Stafford Disaster Relief
and Emergency Assistance Act, to pay Disaster Unemployment Assistance to any
individual unemployed as a result of a major disaster.
xxv. Payments under the Consolidated
Appropriations Act of 2005,
Public Law
108-447, regarding any additional payment received
by a member of the United States Armed Forces deployed to a designated combat
zone. This additional payment shall be excluded from household income for the
duration of the member's deployment if the additional pay is the result of
deployment to or serving in a combat zone, and it was not received immediately
prior to serving in the combat zone.
xxvi. Payments made under the National Flood
Insurance Program (NFIP). Public Law 109-64, which amended
the National Flood Insurance Act of 1968, mandates that payments made under
NFIP, for flood mitigation activities, shall not be counted as
income;
17. The amount
that the representative payee withholds from the funds it receives on behalf of
an SSI recipient shall not be counted as income to the SSI recipient for NJ
SNAP purposes;
18. The pro-rata
share of income of an ineligible alien (see
N.J.A.C.
10:87-7.7(c));
19. SNAP benefits from Puerto Rico, American
Samoa, and the Commonwealth of the Northern Mariana Islands; and
20. All legally obligated or court-ordered
child support payments paid by a household member to, or on behalf of, a
non-household member, including payments to a third party on behalf of the
non-household member and amounts paid toward arrearages. Alimony payments made
to or for a non-household member shall not be excluded as income.
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