340:10-3-39. Income other than earned income
(a) Capital investments.Proceeds from interest or dividends from capital investments that include savings accounts, bonds, other than United States (U.S.) Savings Bonds, notes, and mortgages received subsequent to certification constitute income.
(b) Real property held as a resource.When the client has income from property held as a resource, only the income after deducting the actual business expense is considered.
(c) Life estate and homestead rights.For income from life estate and homestead rights, refer to Oklahoma Administrative Code (OAC) 340:10-3-4(d).
(d) Minerals.When the client owns minerals, but not the surface rights, only actual income from minerals, delayed rentals, and production is considered. • 1The worker obtains income verification from documents that the client has in hand, when available.When the client does not have documentary evidence of the income amount, the worker or client obtains income verification from the firm or person who is making the payment.
(e) Home produce.Any home produce from garden, livestock, and poultry utilized by the client and his or her household for their consumption is not considered in determining the Temporary Assistance for Needy Families (TANF) benefit amount.
(f) Contributions.Appreciable contributions recurrently received in cash are considered income except when the contribution is not made directly to the recipient. • 2
(g) Child support.The Oklahoma Department of Human Services (DHS) Child Support Services may send the client child support in excess of the monthly court ordered amount.When the client receives this excess amount, it is considered as unearned income. When the TANF payee is a minor parent and lives with an adult relative who receives child support for the minor parent, the child support is considered as income for the minor parent. • 3
(h) Retirement, disability, and unemployment benefits.Income received monthly from annuities, pensions, retirement, veterans' or disability benefits, workers' or unemployment compensation, survivors' or Social Security benefits are considered unearned income.• 4The worker verifies the income by obtaining a copy of the person's award letter or benefit verification statement or by use of data exchange files. • 5Retirement received as a lump sum payment upon retirement are considered as a resource, per OAC 340:10-3-5(a)(9)(D).Supplemental Security Income (SSI) does not fall under these types of benefits. • 6
(i) Military benefits.When the client or his or her spouse is or was in the military, he or she may be eligible to receive life insurance, pensions, compensation, servicemen dependents' allowances, and similar benefits.When the client states that any member of the assistance unit, former spouse, or a non-custodial parent is or was in the military, the worker checks with state and federal veterans' agencies to determine if any benefits are available to the assistance unit.
(j) Income from any agency or organization. Financial aid provided to persons by agencies or organizations that base their payment on financial need is not considered in determining the TANF benefit amount provided duplication does not exist between such other assistance and that provided by DHS.Financial aid given by other agencies or organizations does not constitute duplication when the financial aid is given:
(1) for a different purpose than that provided by DHS;
(3) in an amount sufficient for the person to have the amount of money as determined by the TANF need standard, per DHS Appendix C-1, Maximum Income, Resource, and Payment Standards, Schedule IX.In this instance, the non-duplicated amount is the difference between the monthly payment standard and the monthly need standard, per DHS Appendix C-1, Schedule IX.Any amount of financial aid that exceeds that difference is considered as unearned income.
(k) Income from the Oklahoma Department of Rehabilitation Services (DRS).When the client receives assistance or services from DRS that is allocated for items not covered in the TANF standards, it is disregarded in determining the TANF benefit amount.Examples of disregarded assistance or services are car fare to a rehabilitation center, extra clothing, lunches, grooming needed for a training program, and any other such complementary payments.
(l) Casual and inconsequential gifts.Monetary gifts, such as Christmas, birthday, or graduation gifts that do not exceed $30 per calendar quarter for each person, are disregarded as income.
(1) Gift amounts are disregarded during the calendar quarter until the total amount reaches $30.When the amount received exceeds $30 per quarter, it is counted as unearned income.
(2) When a single gift exceeds $30, the entire amount is counted as unearned lump sum income, per OAC 340:10-3-28.
(3) When the recipient claims that the gift is intended for more than one person in the assistance unit, it can be divided among these persons.Gifts between members of the assistance unit are not counted. • 8
(m) Grants.Grants that are not based on financial need are considered income to the extent the grant is available for current maintenance. • 9
(1) Any portion of the grant that is expended, designated, or intended for items not included in current maintenance is excluded provided documentation is provided to justify the exclusion.
(2) The countable amount of a grant received for a period covering more than one month is prorated over the period it is intended to cover.
(n) Funds held in trust by Bureau of Indian Affairs (BIA).The BIA frequently puts a person's trust funds in an Individual Indian Money (IIM) account. • 10
(1) When the BIA disburses any portion of the funds to the client, guardian, or conservator, such funds are considered as available unearned income unless the income is disregarded, per OAC 340:10-3-40.
(A) When countable funds are disbursed on a monthly basis, the income is treated as unearned income in the month received.
(B) When countable funds are disbursed on a regular basis, less often than monthly, the income is averaged over the number of months it is intended to cover, per OAC 340:10-3-28(1).
(C) When countable funds are disbursed in a one-time payment, the income is considered a nonrecurring lump sum payment in the month received, per OAC 340:10-3-28(2).
(D) When the BIA states that the funds are unavailable and are not disbursed, the funds are not considered in determining eligibility.
(2) When the BIA states that the account is unavailable and does not have a monthly disbursement plan, but a review of the account reveals a recent history of disbursements to the client, guardian, or conservator, this may indicate that all or a portion of the account is available.The availability of the funds must be resolved with the BIA. • 11When this occurs, the funds are considered as unavailable because of a legal impediment until the situation is resolved.
(3) When the BIA makes disbursements to a third party vendor in payment for goods or services, the disbursements are not considered as countable income.
(o) Profit sharing.When a household member is a shareholder in an S corporation or a partner in a limited partnership or limited liability company, he or she may receive a distribution or profit share of the business.This is considered unearned income. • 12
2.Refer to OAC 340:10-3-39(l) for information concerning casual and inconsequential gifts.Refer to OAC 340:10-3-5(a)(4)(D) when donations are placed in a charitable account.
3.(a) Payments made to Child Support Services may be verified by viewing the child support payment screen using the transaction CFRRPA. To view instructions for the CFRRPA transaction, enter M space CFRRPA.
(b) When the minor parent lives with his or her parent, the worker codes the child support as a contribution and it continues to count as income after certification.Refer to OAC 340:10-3-57(e)(5) when the minor parent lives with his or her parent and OAC 340:10-10-7 for information about how child support is considered after certification.
4.Exclude the cash value of pension plans or funds described in Section 4104 of the Food, Conservation, and Energy Act of 2008, Public Law (P.L.) 110-234.The list of excluded retirement saving and pension plans are:
(1) 457 of the Internal Revenue Code plans, which are plans for state and local governments and other tax-exempt organizations;
(2) Section 401(a) of the Internal Revenue Code plans including:
(A) 401(k) plans, which are generally a cash or deferred arrangement limited to profit-making firms;
(B) SIMPLE 401(k) plans available only to small businesses;
(C) Profit Sharing Plans;
(D) Cash Balance Plans;
(E) pension or traditional defined-benefit plans; and
(F) Keogh plans;
(3) Federal Employee Thrift Savings plan;
(4) Section 403(b) of the Internal Revenue Code plans, which are tax-sheltered annuities provided for employees of tax exempt organizations and state and local educational organizations;
(5) Section 501(c)(18) of the Internal Revenue Code plans, which are retirement plans for union members consisting of employee contributions to certain trusts that must have been established before June, 1959;
(6) Section 408 and 408(A) of the Internal Revenue Code plans including:
(A) Individual Retirement Accounts (IRAs);
(B) SIMPLE IRAs;
(C) Roth IRAs; and
(D) Simplified Employer Plans (SEPs).
(b) Expenses that are not considered in the TANF need standard may include when a private agency provides money for special training for a child or when Housing and Urban Development provides money to cover moving expenses.
10.(a) At application, the worker contacts the Bureau of Indian Affairs (BIA) in writing to determine the availability of a person's trust funds.At each reapplication or renewal, the worker contacts the BIA to obtain information regarding any:
(1) changes in fund availability;
(2) modifications to the Individual Indian Money (IIM) account; and
(3) prior disbursements.
(b) The worker records documentation regarding availability of funds, all disbursements since the most recent application or renewal, and why disbursed funds are countable or disregarded in the Family Assistance/Client Services (FACS) case notes.
11.When the worker is unable to resolve the situation with the BIA, the worker emails Adult and Family Services TANF staff for assistance.
(1) The email must include specific details of the situation, including the worker's efforts to resolve the situation with the BIA.When Adult and Family Services (AFS) TANF staff is unable to make a determination, TANF staff requests a legal decision from Legal Services regarding availability.Once AFS TANF staff obtains the legal decision, he or she forwards the legal decision to the worker.
(2) The funds are considered unavailable because of a legal impediment unless AFS TANF staff notifies the worker to count the funds.
12.(a) To calculate the household's profit sharing income from an S corporation, the worker uses the 'ordinary business income' shown on line 1 of the Schedule K-1, Shareholder's Share of Income, and divides the income by 12 or the number of months the business existed in the tax year to arrive at the monthly gross unearned income.
(b) When a household member is a partner, the worker looks at line G on Schedule K-1, Partner's Share of Income that accompanies Form 1065, Partnership Return of Income, to determine the type of partnership.When it shows the business is a limited partnership or limited liability company, the worker uses the 'ordinary business income' shown on line 1 of Schedule K-1 and divides the income by 12 or the number of months the business existed in the tax year to arrive at the monthly gross unearned income.When line G shows the business is a general partnership, refer to OAC 340:10-3-32(a)(3) to calculate the income as self-employment income.
(c) The worker codes the profit sharing income in the FACS Income tab and enters a FACS case note to document income calculations.