(i) Income must be verified
using the most recent Federal tax 1040 forms. If Federal tax forms are not
available, the W-2 or three recent pay stubs may be used. However, LLR's are
required to present their Federal Income 1040 tax forms at the next Federal
income tax filing period.
(ii)
Determine the total annual earned income of the household. To the earned income
figures, add any interest, dividends, benefits, alimony, or child support
payments received by the LLR during the preceding 12 months. The sum of all
earned and nonearned income is the gross annual income. The following policies
apply to the determination of gross income:
(A) Earned income is the sum of all wages,
salaries, fees, commissions, tips, bonuses, net rental income before deductions
for taxes, insurance, tax sheltered annuities or other income.
(B) Interest income includes interest
received from accounts with banks, money market funds, credit unions or bonds
that are paid to the LLR.
(C)
Dividends received from corporate stock holdings or life insurance policies are
counted as income.
(D) Capital
gains from any source.
(E) Benefits
including, but not limited to, unemployment compensation, OASDI payments,
pensions, black lung benefits, railroad retirement, and the like, are counted
as income.
(F) Benefits of a LLR
that are specifically restricted to his own personal use, such as veteran's
pensions or Social Security benefits shall be considered only for his own
support and must be disregarded for the purpose of supporting the
client.
(iii) Alimony and
support payments are counted as income when determining gross income.
(A) If there is a court-supervised settlement
or agreement regarding payment for medical care costs for the client, liability
is only assessed against the spouse or parent having responsibility for these
costs.
(B) If the court order
specified that the first spouse or parent is liable for medical costs up to a
given dollar amount, the second spouse or parent remains liable up to the
second spouse's or parent's maximum liability, but liability may not exceed the
amount assessed the first spouse or parent under court order.
(C) If there is no court-supervised
separation or divorce agreement, the income of both spouses or parents is
considered assessable up to the maximum liability. If a child is a client and
if the parent with whom the child is not residing refuses to provide
information or income amounts, liability of the parent with whom the child
resides is limited to the maximum liability based on the one parent's income.
The other parent refusing to provide information or income amounts is liable
for the full cost of care up to the maximum liability over and above the
charges paid by the parent with whom the child resides.
(D) Services may not be discontinued to a
child because of nonpayment by the noncustodial parent.