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Income Exclusions

The following income does not count toward a household’s LIHEAP eligibility.

Type of Income LIHEAP Handling​
ABLE Accounts
Exempt unless
  1. a donor contributes more than federal gift tax exclusion or

  2. the money withdrawn goes to pay for an unqualified expense.


​Agent Orange Settlements
Exempt​
Community Service Employment programs
Exempt for programs derived from Title III and Title V of the Older Americans Act.
Examples:
  • Experience Works,
  • National Council on Aging,
  • National Council of Senior Citizens,
  • American Association of Retired Persons,
  • US Forest Service,
  • National Association for Spanish Speaking Elderly,
  • National Urban League,
  • National Council on Black Aging, and
  • National Council on Indian Aging.


​Developmental Disabilities Services Payments
Exempt​

Disaster Assistance​
Exempt

Earned Income Tax Credit
Exempt for both state and federal returns.​

Earnings of a Minor​
Exempt unless not attending school or dependent.​

Emergency Assistance to Needy Families with Children​
Exempt

Experimental Housing Assistance​
Exempt​
Federal Workforce Training Programs
Exempt federally-funded workforce training program income unless a person 19 years of age or older performs on-the-job training. This is countable, earned income.
The exemption includes payments from Workforce Innovation and Opportunity Act and any other federally-funded workforce training programs.
Examples:
  • Youthbuild,
  • Summer Youth,
  • Job Corps, and
  • paid classroom training.

Funds for the children of Vietnam Veterans
Exempt​

Government rent and housing subsidies​
Exempt

In-kind income
Exempt​
Loans​
Exempt when “bona fide.”
The household must show
  • evidence of the duty to repay or that the loan is from a person or financial institution in the loan business or,

  • when the lender is not in the loan business, the borrower statement that he or she must repay the loan.
National and Community Service Trust Act of 1993 programs​
Exempt programs from Title I.
Examples:
  • University Year for Action,
  • Senior Companion Program,
  • AmeriCorps, and
  • Volunteers in Service to America
Native American Income
​Exempt payments from the following sources:
Per capita payments from judgment awards or trust funds made pursuant to Public Law 98-64. LIHEAP staff contacts the tribe when there are questions. The exclusion is per person rather than per family.This includes
    • any interest or investment accrued on the funds held in trust or

    • any purchases made with judgment funds, trust funds, interest, or investment income accrued on the funds.
It does not apply to interest or income derived from purchases made after distribution.
Examples: Osage tribe headrights, mineral lease income, or other tribal business ventures.
The interests of individual Native Americans in trust or restricted lands.
The income received by individual Indians derived from leases or other uses of individually-owned trust or restricted lands unless more than $2,000. The excess is countable, unearned income. Any payments made due to the Alaskan Native Claims Settlement Act to an Alaskan native.

Nazi Victim Funds
Exempt​

Radiation Exposure Trust Fund programs​
Exempt​

Reimbursements

Exempt as long as the reimbursement does not exceed the amount of the expense.​

School and child care food assistance​
Exempt​

​Service Corps of Retired Executives (SCORE) and Active Corps of Executives (ACE)
Exempt
The exemption applies to
  • foster grandparents,
  • senior health aides,
  • senior companions, and
  • Service Corps of Retired Executives (SCORE) and Active Corps of Executives (ACE) volunteers.

SNAP benefits
Exempt​
Student aid
Exempt
Examples:
  • educational loans with deferred payments,
  • fellowships,
  • grants,
  • scholarships,
  • veteran education benefits, and
  • work study.

Student Trust Funds​
Exempt when there is a written petition from the student’s trust fund for school expenses.​

Uniform Relocation Assistance and Real Property Acquisition Policies Act​
Exempt any payment from Title II.​

Vendor Payments​
Exempt​
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