Rules & Regulations of the State of Tennessee
Title 1240 - Human Services
Subtitle 1240-01 - Family Assistance Division
Chapter 1240-01-50 - Financial Eligibility Requirements - Families First Program
Section 1240-01-50-.10 - DEFINITION OF INCOME

Current through September 24, 2024

Assistance Group income shall mean all monies from whatever source, earned or unearned, except the exclusions listed in 1240-1-50-.11.

(1) Earned Income. Earned income is income which is derived from the work efforts of an individual as wages, salaries, commissions, or as profits from self-employment enterprise, including farming, carried on either alone or jointly. It includes bonuses, vacation pay, pay received while on maternity leave and sick pay when mandatory deductions are made. Garnished or diverted wages, etc. are also considered in determining gross earned income. The following types of income are considered earned income:

(a) Wages, salaries, commissions;

(b) Profit from self-employment enterprise such as:
1. Farming;

2. Small business enterprises;

3. Roomers/boarders;

4. Rental receipts. Receipts from rental property owned/being purchased by an individual when he/she is actively engaged in the production of the income are earned income.

5. Total gains of any capital goods or equipment related to the business, excluding the costs of doing business.

(c) Training and rehabilitation allowances. Any wages paid for on-the-job training or public service employment;

(d) Severance pay;

(e) Vacation, sick, longevity and bonus pay, when mandatory deductions are made;

(f) Allowances and other benefits under the National and Community Service Trust Act of 1993.

(2) Unearned Income. Unearned income is any income which does not meet the definition of earned income. No earned income exclusions or deductions may be applied to unearned income. Unearned income includes, but is not limited to:

(a) Unemployment compensation.

(b) Workman's (workers) compensation.

(c) Vacation, sick, longevity and bonus pay when mandatory deductions are not made.

(d) Interest, dividends, royalties and all other direct money payments which can be construed to be a gain or benefit.

(e) Assistance payments or other need based payments not otherwise excluded.

(f) Pensions and benefits such as annuities, retirement, veterans, disability, Social Security, military or Job Corps allotments.

(g) Child support and alimony.

(h) Regular cash contributions.

(i) Money withdrawn from the body of a trust or interest/dividends paid to an A/R.

(j) Non-IV-E foster care board payments made on behalf of a minor mother who receives Families First for her own child. If the child of the minor parent is also in foster care on non-IV-E funds, his/her board payment must also be counted as unearned income.

(k) Rehabilitation payments made under Services to the Blind or Vocational Rehabilitation or other such programs are unearned income. Costs directly associated with a rehabilitation program and borne by a participant are deducted from the gross payment and the remainder is income.

Authority: T.C.A. §§ 4-5-201 et seq., 71-1-105, Public Acts of 1996, Chapter 950, and 45 C.F.R. 233.20.

Disclaimer: These regulations may not be the most recent version. Tennessee 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.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.