Current through Register Vol. 35, No. 18, September 24, 2024
A.
Earned income: Earned income includes the following:
(1)
Wages and salaries: All
wages and salaries paid to an employee.
(2)
Sick pay: Sick pay is
counted as earned income if the person receiving sick pay will be returning to
work after recovery and is still considered an employee by the
employer.
(3)
Military
personnel: A household consisting of one or more military personnel
receiving a basic allowance for quarters or basic allowance for subsistence
instead of free housing or food shall have such funds counted as earned
income.
(4)
Self/employment: The gross income from a self/employment
enterprise, including the total gain from the sale of any capital goods or
equipment related to the business, minus the costs of doing business, is
considered earned income. This is the gross income of the self/employed
individual.
(5)
Rental
property: Income from rental property is considered earned only if a
household member is actively engaged in the management of the property an
average of at least 20 hours per week. The owner is allowed the cost of doing
business.
(6)
Roomer or
boarder: Payments from a roomer or boarder are considered
self/employment income. The 20 hours per week provision applied to rental
property does not apply to roomer or boarder situations.
(7)
Training allowances: A
training allowance from a vocational and rehabilitative program recognized by
federal, state or local governments, such as DVR, is considered earned income,
to the extent the training allowance is not a reimbursement.
(8)
VISTA payments: Payments
under Title I (VISTA, university year for action, etc.) of the Domestic
Volunteer Service Act of 1973 (Pub. L. 93/113 Stat., as amended)
are considered earned income to applicant households not receiving food stamp
benefits at the time the household member joined VISTA.
(9)
Workforce Investment Act:
Earnings of an individual participating in an on/the/job training program under
Section 204 (b) (1) (C) or Section 254 (c) (1) (A) of the Workforce Investment
Act (WIA). This provision does not apply to household members under 19 years of
age who are under the parental control of an adult member, regardless of school
attendance or enrollment. Earnings include monies paid under the WIA and monies
paid by the employer. This section includes adult and youth programs and summer
youth employment and training programs, but does not include job corps, E&T
programs for Native Americans, migrant and seasonal farm workers, and veterans
employment programs.
B.
Unearned income: Unearned income includes, but is not limited to,
the following:
(1)
Federal assistance
programs: Assistance payments from federal or federally aided cash
assistance programs, such as supplemental security income (SSI), Title IV/A
(temporary assistance to needy families), general assistance (GA), or other
assistance programs based on need. Assistance payments from programs which
require, as a condition of eligibility, the actual performance of work without
compensation other than the assistance payments themselves, shall be considered
unearned income.
(2)
Other
benefits: Annuities, pensions, retirement, veteran's or disability
benefits, workman's compensation, unemployment compensation benefits (UCB),
OASDI, and strike benefits are unearned income.
(3)
Foster care payments: Foster
care payments for children or adults shall be counted in their entirety unless
the household providing the foster care chooses to exclude the foster child
household member.
(4)
Support
or alimony: Support or alimony payments made directly to the household
from non/household members.
(5)
Educational funds: Scholarships, educational grants, fellowships,
deferred payment loans for education, and veteran's educational benefits, are
counted, after allowable deductions, unless the educational assistance is
excluded in its entirety in Subsection E of
8.139.520.9 NMAC. Gifts or money a
student may receive from parents or other private source on a periodic basis
shall be counted as unearned income, including the portion used to pay for
tuition and mandatory fees.
(6)
Government/sponsored programs: Payments to individuals from
individual Indian monies and grants from the bureau of Indian
affairs.
(7)
Gain or
benefit: Dividends, interest, royalties, and all other direct money
payments from any source which can be construed to be a gain or a benefit to
the household. Interest income includes payments on a bank account that are
simply posted in a bank book and not paid directly to a household.
(8)
Trust funds: Money withdrawn
or dividends that are or could be received by a household from a trust fund
considered an excludable resource. Such trust withdrawals shall be considered
income in the month received, unless excluded in Subsection D of
8.139.520.9 NMAC. Dividends which
the household has the option of either receiving as income or reinvesting in
the trust shall be considered income in the month they become available to the
household, unless excluded per Subsection D of
8.139.520.9 NMAC.
(9)
Rental property: Income from
rental property shall be considered unearned when a household member engages in
the management of the property less than 20 hours per week. The gross income
minus the cost of doing business is counted as household income.
(10)
Sponsored alien income: The
amount of monthly income of an alien's sponsor and the sponsor's spouse (if
living with the sponsor) that is deemed to be that of the alien (Subsection G
of 8.139.420.9 NMAC).
(11)
Termination pay: Severance
pay (e.g., two weeks pay instead of notice) and supplementary unemployment
benefits (a series of payments similar to UCB, but paid by the employer)
received after termination shall be considered unearned income.
(12)
Vacation or sick pay:
Unused vacation or sick pay paid in installments over a period of at least two
months is considered unearned income in the months received. If paid as a lump
sum at termination of employment, the income is considered a resource in the
month received.
(13)
Cash
awards, gifts, prizes: Cash awards, gifts, prizes and winnings shall be
considered unearned income in the month received, subject to the $30.00 per
quarter exclusion, even if paid on a one/time basis.
(14)
One/time income: The
distinction between one/time income and a one/time lump sum resource is that a
lump sum is money owed the household from a past period and paid
retroactively.
C.
Other countable income:
(1)
Legal entitlement: Any payment that a household is legally
entitled to receive, but is diverted by the provider of the payment to a third
party for an expense incurred or owed by the household shall be counted as
income. The distinction is whether the individual or organization making a
payment on behalf of a household is using funds that otherwise must be paid to
the household, such as wages, cash assistance grant, or child support or
alimony payments. In these cases, a household is legally entitled to the money.
If an employer, agency, or former spouse who owes such funds to a household
diverts the money to a third party to pay for a household expense, the money is
still counted as income, unless a court orders the money diverted.
(2)
Garnished wages: Wages
earned by a household member that are garnished or diverted by an employer and
paid to a third party for a household expense shall be counted as
income.
(3)
Public
assistance: All or part of a public assistance grant that is normally
provided by a money payment to a household, but is diverted to a third party or
to a protective payee for purposes of managing expenses, shall be counted as
income.
(4)
Third party
energy assistance payments: Any payment made to a household under a
state law to provide energy assistance shall be considered money payable
directly to the household, unless under the law the payment cannot be provided
in cash.
D.
Excluded income: The following income shall be excluded in
determining FS benefits:
(1)
Federal
laws: Income excluded by federal laws. The comprehensive list is found
in 8.139.527 NMAC.
(2)
In/kind benefits: Any gain or benefit which is not in the form of
money paid directly to the household, including non/monetary or in/kind
benefits such as meals, clothing, public housing, gifts for special occasions,
or produce from a garden.
(3)
Vendor payments: Money payments that a household is not legally
entitled to receive, and which are paid directly to a third party for a
household expense are considered a vendor payment. A money payment made on
behalf of a household is considered a vendor payment whenever an individual or
organization outside the household uses its own funds to make a direct payment
to a household's creditors, or to a person or organization providing a service
to a household. Vendor payments include but are not limited to:
(a) rent paid directly to the landlord by a
friend or relative, who is not a household member;
(b) rent or mortgage payments made to
landlords or the mortgagee by the department of housing and urban development
(HUD) or by a state or local housing authority;
(c) payments by a government agency to a
child care institution to provide day care for a household member;
(d) insurance company payments made directly
to titleholders or loan companies when a household member becomes disabled or
dies and is covered by credit life and disability insurance;
(e) housing assistance payments made to a
third party on behalf of a household residing in transitional housing for the
homeless;
(f) a rent payment by an
employer made directly to the landlord, in addition to paying the household its
regular wages, is considered a vendor payment and is excluded as
income.
(4)
Energy
assistance: Any payment or allowance made for the purpose of providing
energy assistance under any federal law, except for a payment or allowance
provided under Title IV/A of the Social Security Act; any federal or state
one/time assistance for weatherization or emergency repair or replacement of
heating or cooling devices.
(5)
State or local general assistance: Any general assistance provided
to a household which cannot, under state law, be provided in cash directly to a
household.
(6)
Child care
food program: Payments made to a household from the child care food
program for child care, or any amount received as payment for care or
reimbursement for costs incurred is excluded income.
(7)
Plan for achieving self/support
(PASS) program: Income of an SSI recipient necessary for the fulfillment
of a plan for achieving self/support which has been approved under Sections
1612 (b)(4)(A)(iii) or 1612(b)(4)(B)(iv) of the Social Security Act. The income
may be spent in accordance with an approved PASS or deposited into a PASS
savings account for future use.
(8)
Infrequent/irregular income: Any income received in the
certification period which is received too infrequently or irregularly to be
reasonably anticipated. The income received cannot exceed $30.00 in a
quarter.
(9)
Lump/sum
payment: Money received in the form of a nonrecurring lump sum payment,
including but not limited to income tax refunds; rebates or credits;
retroactive lump sum social security or SSI; cash assistance; railroad
retirement; or other similar payments. Lump sum insurance settlements and
refunds of security deposits on rental property or utilities are counted as
resources in the month received, unless specifically excluded from
consideration as a resource by federal law.
(10)
TANF diversion: A TANF
payment made to divert a family from becoming dependent on cash assistance
shall be considered as a nonrecurring lump/sum payment if the payment is not
defined as ongoing monthly assistance.
(11)
Loans: All loans, including
loans from private individuals as well as commercial institutions, other than
educational loans on which repayment is deferred.
(12)
Charitable donations:
Charitable cash donations based on need from one or more private, nonprofit
charitable organizations, not to exceed $300 in a federal fiscal quarter
(January through March, April through June, July through September, and October
through December).
(13)
Earned income tax credit (EITC): EITC payments received either as
a lump sum, or advance payments of earned income tax credits received as part
of a paycheck or as a reduction in taxes that otherwise would have been paid at
the end of the year.
(14)
Diverted retirement income: The portion of a civil service
retirement annuity or military retirement payment that is diverted to a former
spouse by court order in a divorce decree is excluded from the income of the
retiree.
(15)
Annual clothing
allowance: The clothing allowance provided each year to an TANF
household whose children are entering or returning to school.
(16)
Utility reimbursements: Any
amount paid by the department of housing and urban development (HUD) or farmers
home administration (FmHA) to a household as a utility reimbursement, or to a
utility provider on behalf of a household, is excluded income.
E.
Educational
expenses:
(1)
Title
IV/BIA: Cash assistance received under Title IV of the higher education
amendments of 1992, including federal college work study authorized under Title
IV, or cash assistance received from bureau of Indian affairs student
assistance programs shall be excluded in determining eligibility and food stamp
benefit amounts effective for award years beginning on or after July 3,
1993.
(2)
Title XIII:
Financial assistance received under Title XIII of the Tribal Development
Student Assistance Act shall be excluded in determining eligibility and food
stamp benefit amounts effective October 1, 1992.
(3)
Earmarked funds: All
educational assistance, including, but not limited to, educational loans on
which payment is deferred, grants, scholarships, fellowships, veteran's
educational benefits, and the like, provided for a student to participate in or
attend a recognized institution of post/secondary education, school for the
handicapped, vocational education program, or program that provides for the
completion of a secondary (i.e., high school) diploma or equivalency (GED),
shall be excluded to the extent that the assistance is either used or made
available for:
(a) tuition;
(b) mandatory fees, including rental or
purchase of any equipment, materials, and supplies required to pursue the
course of study involved;
(c) books
and supplies;
(d) transportation
expenses;
(e) origination fees and
insurance premiums on student loans; and
(f) miscellaneous personal expenses (other
than living expenses) incidental to a student's attendance at a school,
institution, or program.
(4)
Restrictions:
(a) Educational assistance provided for
normal living expenses (room, board, and dependent care) shall not be excluded
as income.
(b) Educational expenses
in excess of the educational assistance provided may not be deducted from other
income.
(c) A student household
eligible for a deduction for dependent care expenses may claim only the amount
which exceeds the amount of educational assistance made available for dependent
care.
(5)
Deferred
payment educational loans: Any amount of state, local, or private
deferred payment educational loans shall be excluded to the extent that the
lender specifically earmarks or budgets part of or all of the loan for
educational expenses. If the institution, school, program, or other lender does
not earmark or budget amounts from the loan for educational expenses, students
receive an exclusion for amounts verified as an educational expense.
F.
Reimbursements:
(1)
Past or future expenses:
Reimbursements for past or future expenses, to the extent they do not exceed
actual expenses, and do not represent a gain or benefit to the household, shall
be excluded.
(2)
Identified
expense: Reimbursements made for an identified expense, other than
normal living expenses, and used for the purpose intended, shall be
excluded.
(3)
Normal living
expenses: Reimbursements for normal living expenses, such as rent or
mortgage, clothing, or food eaten at home, shall be considered a gain or
benefit to a household and are not excluded.
(4)
Multiple expenses: If a
reimbursement, including a flat allowance, covers multiple expenses, each
expense does not need to be identified separately, as long as none of the
reimbursement covers normal living expenses. The amount by which a
reimbursement exceeds the actual incurred expense shall be counted as
income.
(5)
Excludable
reimbursements:(a)
Job/training
related: 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 provided over and above the basic
wages for such expenses are excluded. However, these expenses, if not
reimbursed, are not otherwise deductible from income.
(b)
Migrant worker expenses:
Reimbursements for travel expenses incurred by migrant workers.
(c)
Volunteers: Reimbursements
for out/of/pocket expenses incurred by volunteers in the course of their
work.
(d)
Medical or
dependent care: Medical or dependent care reimbursements.
(e)
Nonfederal educational
expense: Nonfederal reimbursements or allowances for students for
specific educational expenses, such as travel or books, but not allowances for
normal living expenses such as food, rent, or clothing shall be excluded.
Portions of a general grant or scholarship must be specifically earmarked by
the grantor as an educational expense rather than for living expenses to be
excludable as a reimbursement.
(f)
Title XX services: Reimbursements received by households to pay
for services provided by Title XX of the Social Security Act.
(g)
E&T program:
Reimbursements for expenses necessary for participation in an education
component to fulfill E&T work requirements in a work program.
(6)
Nonexcludable
reimbursements:(a)
Title IV/A
grant: No portion of an title IV/A grant shall be excluded as a
reimbursement if the grant is increased to adjust for work/related or child
care expenses.
(b)
Educational funds: No portion of any federal or nonfederal (state,
local, private) educational loan, grant, scholarship, fellowship, veteran's
educational benefit and the like shall be excluded as a reimbursement, to the
extent that it provides income assistance for normal living expenses.
G.
Payments for
third party beneficiary: Payments received and used for the care and
maintenance of a third/party beneficiary who is not a household member shall be
excluded as income. If the intended beneficiaries of a single payment include
both household and non/household members, any identifiable portion of the
payment intended and used for the care and maintenance of a nonmember is
excluded. If the nonmember's share cannot be readily identified, the payment is
divided equally among intended beneficiaries. The exclusion is applied to the
nonmember's pro rata share, or the amount actually used for the nonmember's
care and maintenance, whichever is less.
H.
Earned income of a student:
The earned income of an elementary or secondary school student living in the
same food stamp household with a natural, adoptive or step/parent, or under the
parental control of another member of the same food stamp household other than
a parent, shall be excluded if the student is:
(1) under age 18, and is
(2) attending classes, including GED classes,
at least half/time.
(3)
Temporary interruptions: The exclusion shall continue to apply
during temporary interruptions in school attendance for semester or vacation
breaks, provided that the child's enrollment will resume following the
break.
(4)
Child's/other
members income: If a child's earnings or amount of work performed cannot
be differentiated from that of other household members, the total earnings
shall be divided equally among the working members and the child's pro rata
share shall be excluded.
(5)
Child turns 18 years old: The earnings of students shall be
counted beginning the month following the month the student turns 18.
I.
Money owed to other
sources:
(1)
Money withheld to
repay previous overpayments: Money withheld to repay prior overpayments
(recoupments) or money voluntarily or involuntarily returned from an assistance
payment, earned income, or other income source shall be excluded from income,
provided that:
(a) repayment is made from the
same income source, and
(b) the
income is from a countable income source.
(c) this exclusion applies only to recoupment
or repayment situations.
(2)
Other withholding: Money
withheld for any other purpose is considered income. Money withheld for other
purposes include: Medicare premiums; processing fees for child support payments
collected by CSED; and deductions (taxes, insurance, etc.) from unearned
income, such as civil service, PERA, and military retirement
benefits.
(3)
Failure to
comply with another assistance program's requirements or fraud: A
household's food stamp benefit amount shall not increase when benefits received
from another program have been decreased (reduced, suspended or terminated)
because of a determination by the other program of intentional failure to
comply with a requirement of the other program or an act of fraud. This
provision applies in cases where the other program is a means/tested, federal,
state or local welfare or public assistance program, which is governed by
welfare or public assistance laws or regulations and which distributes public
funds.
(a)
Conditions:
(i) If the department is not able to obtain
necessary cooperation from another federal, state or local means/tested welfare
or public assistance program to enable it to comply with the requirements of
this provision, the department is not held responsible as long as a good faith
effort to obtain the information has been made.
(ii) A household's current food stamp benefit
amount shall not be reduced, suspended or terminated when the benefits under
another assistance program have been decreased.
(iii) Food stamp benefits shall be adjusted
when eligible members are added to the food stamp household regardless of
whether or not the household is prohibited from receiving benefits for the
additional member under another federal, state, or local welfare or public
assistance means/tested program.
(iv) Changes in household circumstances which
are not related to a penalty imposed by another federal, state or local welfare
or public means/tested assistance program shall not be affected by this
provision.
(b) This
provision does not apply to individuals or households subject to
disqualification for noncompliance with E & T work requirements which are
comparable to Title IV or UCB work requirements in Subsection H of
8.139.410.12 NMAC. In such cases,
an individual or household disqualification occurs and food stamp benefits are
reduced.
(c) There is no time
restriction on the application of this provision. The prohibition against
increasing food stamp benefits shall apply for the duration of the penalty
imposed by the welfare or public assistance program.
(d)
Recoupments: Food stamp
benefits shall not increase in cases where the household is subject to either a
reduction in benefits or recoupment due to intentional failure to comply with
the other program's requirements. Food stamp benefits shall not increase as
long as a reduction or recoupment is in effect.
(e) This provision does not result in a
reduction, termination, or suspension of a household's current food stamp
benefit amount; therefore, a caseworker need not send an adverse action notice.
A caseworker may send adequate notice to a household affected by this
provision.
(4)
Child support payments transferred under title IV/D: A child
support payment received by a cash assistance household that must be
transferred to or retained by the child support enforcement division (title
IV/D) to maintain cash assistance eligibility, shall be excluded as
income.
J.
Guaranteed Based Income: Guaranteed basic income provides an
individual or household a one time or recuring cash payment or transfer funded
from a public or private source intended to support the basic needs of
individuals or households by reducing poverty, promoting economic mobility, or
increasing the financial stability.
(1)
Exempt: Any payments that is funded solely with private funds or a
mixture of private and public funds will be excluded as income.
(2)
Counted: Any payment that is
funded solely with public funds will be counted as income.
K.
Universal Basic Income:
Universal basic income is a government-guaranteed program that provides a
modest cash income at regular intervals (e.g., each month or year) to every
individual or household to meet basic needs.
(1)
Exempt: Any payments that is
funded solely with private funds or a mixture of private and public funds will
be excluded as income.
(2)
Counted: Any payment that is funded solely with public funds will
be counted as income.