Current through Register Vol. 48, No. 3, March 22, 2024
A. Gross Income
Limit. Gross monthly countable earned and unearned income of the Family
Independence benefit group must not exceed 185 percent of the need standard by
family size. The gross income limit is an initial screen of eligibility for
assistance.
B. Earned Income and
Unearned Income.
(1) Earned income means
gross earned income prior to any deductions for taxes or for any other
purposes. Such earned income may be derived from an applicant's or recipient's
own employment, such as a business enterprise, or farming; or derived from
wages or salary received as an employee. It includes earnings over a period of
time for which settlement is made at one given time, as in the instance of the
sale of farm crops, livestock, or poultry.
(2) With reference to commissions, wages, or
salary, earned income means the total amount, irrespective of personal
expenses, such as income-tax deductions, lunches, and transportation to and
from work, and irrespective of expenses of employment which are not personal,
such as the cost of tools, materials, special uniforms, or transportation to
call on customers.
(3) With respect
to self-employment income, earned income means the total profit from a business
enterprise, farming, etc., resulting from a comparison of the gross receipts
with the business expenses (i.e., expenses directly related to producing the
goods or services and without which the good or services could not be
produced). The profit shall be as determined using Internal Revenue Service
methods.
(4) With regard to the
degree of activity, earned income is income produced as a result of the
performance of services by a recipient; in other words, income which the
individual earns by his own efforts, including managerial responsibilities,
would be properly classified as earned income, such as management of capital
investment in real estate. Conversely, in the instance of capital investment
wherein the individual carries no specific responsibility, such as where rental
properties are in the hands of rental agencies and the check is forwarded to
the recipient, the income would not be classified as earned income.
(5) Unearned income is any income that does
not meet the definitions of earned income above, such as direct child support,
social security benefits, interest, dividends and gifts.
(6) Unemployment compensation benefits are
treated as unearned income in the budgeting process.
C. Disregard of Earned Income. For purposes
of eligibility and benefit determination, provided the benefit group has passed
the gross income limit test in item A above, the Department will disregard from
earned income:
(1) Fifty percent of the
monthly gross countable earned income, of each individual whose needs are
included in the budget group, for the first four months in which earned income
is countable. This disregard can be received only once in twenty-four
months.
(2) One hundred dollars per
month from gross countable income of each individual whose needs are included
in the budget group, for the remaining months of eligibility after the four
months in paragraph (1) above have been exhausted.
(3) Casemanagers will counsel with recipients
concerning the advantages and disadvantages of receiving a small FI benefit for
a few months versus closing their case and possibly losing transitional
Medicaid benefits as opposed to saving their time limited months for a possible
future emergency, such as becoming unemployed.
D. Prospective Eligibility and Budgeting. All
factors of eligibility shall be determined prospectively and the monthly amount
of assistance will be computed based on a best estimate of income and
circumstances which will exist in the benefit month. This estimate shall be
based on the Department's reasonable expectation and knowledge of current,
past, or future circumstances. Monthly income is estimated prospectively based
on past income from the previous four weeks and anticipated changes in income.
Expenses may be estimated prospectively using the same methodology. Weekly
income is multiplied by 4.33 to convert it to monthly income.
E. Payment Determination. To determine the
amount of the payment for the benefit group, subtract countable income from the
full need standard and multiply the result (deficit) by the ratable
reduction.
F. Payment Methods.
Money payments made to eligible families may be made by checks, warrants
immediately redeemable at par, by electronic benefits transfer, or direct
deposit to bank accounts. Family Independence payments are not to be accessed,
by electronic transaction using a Point-of-Sale device, ATM, or access to an
online system for the withdrawal of funds or the processing of a payment for
merchandise or a service, at any of the following locations:
(1) A liquor store. A liquor store means any
retail establishment which sells exclusively or primarily intoxicating liquor.
Such term does not include a grocery store which sells both intoxicating liquor
and groceries including staple foods (within the meaning of section3(r) of the
Food and Nutrition Act of 2008 (
7
U.S.C. 2012(r) ).
(2) A casino, gambling casino or gaming
establishment.
(3) An adult
oriented entertainment establishment. An adult oriented establishment is
defined as a retail establishment that provides adult-oriented entertainment in
which performers disrobe or perform in an unclothed state for
entertainment.
