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Income Determination

To be income eligible, the household's income must not exceed the applicable income threshold. The system adds all available countable earned and unearned income to arrive at the household's gross income and then subtracts any court-ordered child support. The system compares this amount to the amounts in the Appendix C-4 (Child Care Eligibility/Copayment Chart).

Reading the C-4

The C-4 lists the income threshold based on the family size. The family size on the C-4 equals the number of people whose income counts toward a child's eligibility. This is the number of people you code as "added to the benefit section" or "income/resources are considered in benefit computation-individual not included" in the Child Care F25 Status dropdown box. In other words, the family size for the C-4 is K/A plus K/O.

The household's income may equal the amount listed for their family size income threshold. But, once the household's income exceeds this value, the child does not qualify for income eligibility.

Remember: A child who is predetermined eligible qualifies regardless of the household’s income.

Copayments

A household seeking Child Care for an income-eligible child may be responsible for a family share copayment. At certification and renewal, FACS determines this copayment based on family size and income in the Child Care benefit. The C-4 lists the copayment that FACS assigns based on these factors. Once set, the copayment may decrease but does not increase during the eligibility period.

When to determine eligibility

In order to qualify and remain income eligible for Child Care, the household's income must not exceed the C-4 threshold for its family size.  Ensure the household's income does not exceed the income threshold when the household's initially applies, renews the Child Care benefit, or reports a change that affects the household's income.

Initial application

When the household's income meets the income threshold and other eligibility criteria, certify the Child Care benefit. When the income exceeds the applicable amount on the C-4, deny or close the benefit. Use the unfinished issuance process when the household income does not exceed the threshold in the initial month but will when the income becomes available in a subsequent month. This ensures the household receives Child Care for the time the family qualifies.

Renewal

After the household submits a renewal, determine if a child remains income eligible. When the household income does not exceed the C-4 amount, the child remains income eligible. If the household meets all other eligibility factors, renew the benefit for a new 12 month period of eligibility. When the household income exceeds the income threshold, close the benefit. When the system has already closed the benefit or you cannot act by 1st deadline, send the client a Notice of Action Taken (Form 08MP038E). This notice explains the benefit will remain closed. When you learn the household exceeds the threshold before 1st deadline, close the benefit at the end of the eligibility period.

Eligibility Period

Reevaluate the household's eligibility whenever the household reports a change in the household's gross income, the number of people in the household, or the amount of court-ordered child support household members pay. When the household's income exceeds the income standard during the eligibility period, the benefit closes. You must close it in 10 calendar days when household income exceeds the income standard for the current month. The benefit closes the last calendar of the current month when the anticipated income for the next month is over the income threshold.

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