COMMENT DUE DATE:
February 1, 2013
DATE:
January 2, 2013
Laura Brown, AFS (405) 521-4396
Pat McCracken, OIRP (405) 522-1017
Dena Thayer, OIRP Programs Administrator (405) 521-4326
RE:
APA WF 12-15
The proposed policy is Permanent . This proposal is subject to the Administrative Procedures Act
The proposed policy is permanent and the proposed effective date is June 1, 2013.
CHAPTER 10. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)
Subchapter 3. Conditions of Eligibility – Need
Part 3. Income
OAC 340:10-3-32 Instructions to staff (ITS) only (REVISED)
OAC 340:10-3-33 [AMENDED]
OAC 340:10-3-40 [AMENDED]
(Reference APA WF 12-15)
SUMMARY:The proposed revisions to Subchapter 3 of Chapter 10 amend the rules to: (1) correct a policy citation; (2) remove outdated language regarding earned income; and (3) reword excluded federally funded grants and workforce training program income.
SUBSTANTIVE CHANGES:
340:10-3-32 ITS only is revised to: (1) correct ITS numbering and (2) add a self-employment example.
340:10-3-33 is revised to: (1) update policy citation; and (2) remove outdated language regarding earned income exemptions for applicants.
340:10-3-40 is revised to reword excluded federally funded grants and workforce training program income to clarify how to determine whether to exclude the income instead of narrowing the language to specific sources.
PERMANENT RULEMAKING APPROVAL IS REQUESTED.
LEGAL AUTHORITY:Director of Human Services; O.S. §§ 162 and 230.52(11)(d); 20CFR §§ 667.272(c) and 672.535; and Section 2008 of Title XX of the Social Security Act.
Rule Impact Statement
To:Programs Administrator
Office of Intergovernmental Relations and Policy
From:Jim Struby, Director
Adult and Family Services
Date:January 3, 2013
Re:CHAPTER 10. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)
Subchapter 3. Conditions of Eligibility – Need
Part 3. Income
OAC 340:10-3-33 [AMENDED]
OAC 340:10-3-40 [AMENDED]
(Reference APA WF 12-15)
Contact:Laura Brown, 521-4396
A.Brief description of the purpose of the proposed rule:
Purpose.
The proposed revisions to Subchapter 3 of Chapter 10 amend the rules to: (1) correct a policy citation; (2) remove outdated language regarding earned income; and (3) reword excluded federally funded grants and workforce training program income.
Strategic Plan impact. The proposed rules achieve the Oklahoma Department of Human Services (OKDHS) goals by supporting the OKDHS mission to administer public resources in a fiscally responsible and ethical manner.
Substantive changes.
340:10-3-33 is revised to: (1) update policy citation; and (2) remove outdated language regarding earned income exemptions for applicants.
340:10-3-40 is revised to reword excluded federally funded grants and workforce training program income to clarify how to determine whether to exclude the income instead of narrowing the language to specific sources.
Reasons. The proposed revisions are necessary to comply with state and federal regulations, more closely match other programs language regarding excluded income rules, and provide staff with clear, concise, and up-to-date rules to facilitate the accurate delivery of benefits and services to persons who are in need.State regulations per Section 230.52(11)(d) in Title 56 of Oklahoma Statutes (O.S.)[56 O.S. §§ 230.52(11)(d)]. does not address earned income exemptions language being removed.OKDHS has received recent federal interpretation regarding excluded income sources per Sections 667.272(c) and 672.535 of Title 20 of the Code of Federal Regulations (CFR) [20CFR §§ 667.272(c) and 672.535] and Section 2008 of Title XX of the Social Security Act.Rewording excluded income to clarify how to determine whether to exclude the income instead of narrowing the language to specific sources will keep OKDHS from revising rules each time a new income source is excluded and help staff determine whether to count the income more quickly.
Repercussions The proposed revisions are necessary to comply with state and federal regulations and provide staff with clear, concise, and up-to-date rules to facilitate the accurate delivery of benefits and services to persons in need.If the proposed revisions are not approved, rules will not comply with state and federal regulations and not be as up-to-date and comprehensive as possible which may lead to incorrect benefit processing and preventable errors.
Legal authority. Director of Human Services; O.S. §§ 162 and 230.52(11)(d); 20CFR §§ 667.272(c) and 672.535; and Section 2008 of Title XX of the Social Security Act.
Permanent approval. Permanent rulemaking approval is requested.
B.A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities: The classes of persons most likely to be affected by the proposed rules are Temporary Assistance for Needy Families (TANF) applicants and recipients and OKDHS staff.The affected classes of persons will bear no costs associated with implementation of the rules.
C.A description of the classes of persons who will benefit from the proposed rule: The classes of persons who will benefit are TANF applicants and recipients and OKDHS staff.
D.A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each fee change: The revised rules do not have an economic impact on the affected entities. There are no fee changes associated with the revised rules.
E.The probable costs and benefits to the Agency and to any other agency of the implementation and enforcement of the proposed rule, the source of revenue to be used for implementation and enforcement of the proposed rule and any anticipated effect on state revenues, including a projected net loss or gain in such revenues if it can be projected by the Agency:The probable cost to OKDHS includes the cost of printing and distributing the rules, which is estimated to be less than $20. The revised rules will result in enhanced delivery of services for clients.
F.A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule: The proposed rules do not have an economic impact on any political subdivision, nor will the cooperation of any political subdivisions be required in implementation or enforcement of the rules
G.A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act: There are no anticipated adverse effects on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act.
H.An explanation of the measures the Agency has taken to minimize compliance costs and a determination whether there are less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rule: There are no less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rules.
I.A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk: Implementation of the proposed rule revisions will bring the rules into compliance with state and federal law and make rules more understandable.This will positively impact the health, safety, and well-being of TANF households by facilitating the delivery of benefits and services to individuals who are in need.
J.A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented:If the proposed rule revisions are not implemented, rules will not be in compliance with state and federal regulations and staff may not process benefits timely and correctly.
K.The date the rule impact statement was prepared and, if modified, the date modified: Prepared November 12, 2012 and modified December 4, 2012.
SUBCHAPTER 3. CONDITIONS OF ELIGIBILITY - NEED
PART 3. INCOME
340:10-3-32. Determination of earned income [INSTRUCTIONS TO STAFF ONLY]
Revised 7-1-12
Earned income results from self-employment or other employment sources.
(1) Self-employment income.Self-employment income received by a member of the assistance unit whose income is derived from a self-employment business enterprise owned solely or in part by the person or when the person works for an employer, but is considered self-employed per OAC 340:10-3-31(a), is considered per the procedures listed in (2) of this Section.
(A) Room or board.Earned income from a room rented in the home is determined by considering 25% of the gross amount received as business expenses.Earned income from room and board paid by a person in the home is determined by considering 50% of the gross income received as a business expense.¢ 31
(B) Rental property.Income from rental property is considered income from self-employment if none of the activities associated with renting the property is conducted by an outside person or agency.¢ 42
(C) Profit sharing.Households who operate S corporations, general or limited partnerships, or limited liability companies may receive profit sharing that is reported on the household's personal income tax return. When a household member:
(i) actively participates in the operations, the income from profit sharing is considered part of the household's self-employed earned income; or
(ii) does not actively participate in the operations, the income from profit sharing is considered part of the household's unearned income.
(2) Self-employment income procedures.Self-employment income that represents the person's annual support is prorated over a 12-month period, even if the income is received in a shorter period of time.The countable earned income is determined by deducting 50% of the gross income as business expenses or by using the net business profit for the most recent tax year as reported on the person's income tax return.¢ 13
(A) New income source. When self-employment income has been received for less than a year, the income must be averaged over the period of time received and the monthly income projected for the coming year.¢ 24
(B) Averaged over period of time received. When there is insufficient data to make a reasonable income projection from this income source, the worker does not consider income from this source until the six month review.At review, the worker averages the income over the number of months received until a full year's data information is available.¢ 5
(C) Substantial increase or decrease in income. When the person who would normally have the self-employment income annualized experiences a substantial increase or decrease in income, the worker does not calculate self-employment income on the basis of prior earnings such as income tax returns.Instead, the worker calculates the self-employment income using only the income that can reasonably be anticipated to project future earnings.
(3) Earned income from sources other than self-employment.
(A) Earned income from wages, salary, or commission.If the income is from wages, salary, or commission, the earned income is the gross income or true wage prior to payroll deductions and withholdings.¢ 56This includes earned income from contract employment.¢ 67Money from the sale of whole blood or blood plasma is considered as earned income.
(B) Earned income from work and training programs.
(i) Workforce Investment Act (WIA).WIA earned income is exempt.¢ 78
(ii) On-the-job training (OJT).Earned income from regular employment for OJT is considered as any other earned income.
INSTRUCTIONS TO STAFF 340:10-3-32
Revised 7-1-12 6-1-13
1.(a) Refer to OAC 340:10-3-31 for self-employed definition.
(b) When the person filed a federal income tax return form for the most recent year, the worker uses the net self-employment income shown on the person's federal income tax return and divides the income by 12 or the number of months the business has been in existence, if less than 12 months, to determine monthly income unless it is not representative of the person's current situation.
(c) The worker uses (1) through (3) to determine the net monthly self-employment income, when the person did not file an income tax return on his or her self-employment income for the most recent year.
(1) The gross self-employment income is computed using the person's self-employment business records for the past 12 months, or the number of months the person has been in business.
(2) If the person declares he or she incurred business expenses, the worker then subtracts 50% of the gross self-employment income as business expenses.If the household did not incur business expenses, a business expense deduction is not given.
(3) If the person's self-employment enterprise has been in existence for at least one year, the worker divides the net self-employment income by 12.If the person's self-employment enterprise has been in existence for less than a year, the worker divides the net self-employment income by the number of months the person has been in business.
(d) Self-employment income tax return forms include, but are not limited to:
(1) Form 1040 with Schedule C for sole proprietors and some limited liability companies;
(2) Form 1065 with Schedule 8865 K-1 for partnerships;
(3) Form 1120-S with Schedule K-1 for S corporations; or
(4) Form 1040 with Schedule F for farmers.
(e) Refer to OAC 340:10-3-33 for earned income deductions.
2.Examples of self-employment income calculations include:
(1) a crop farmer does not receive income from crops every month, but it represents the farmer's annual support.Income from this source is averaged over a 12-month period; or
(2) self-employment income was received from February 18 to the application month of November is averaged for nine months, February through October.It is correct to count the first month of income received through the last complete month when computing an annualized figure for new self-employment income.
3.If the roomer or boarder is a non-relative of the opposite sex, refer to OAC 340:10‑3-57(e)(3).
42.When the client does not manage the rental property, it is considered as unearned self-employment.The client is then entitled to have 50% percent of his or her business expenses subtracted from the income, but is not eligible for a work related expense deduction.
3.(a) Refer to OAC 340:10-3-31 for self-employed definition.
(b) When the person filed a federal income tax return form for the most recent year, the worker uses the net self-employment income shown on his or her federal income tax return and divides the income by 12 or the number of months the business has been in existence if less than 12 months, to determine monthly income unless it is not representative of his or her current situation.
(c) The worker uses (1) through (3) of this subsection to determine the net monthly self-employment income, when the person did not file an income tax return on his or her self-employment income for the most recent year.
(1) The gross self-employment income is computed using the person's self-employment business records for the past 12 months, or the number of months he or she has been in business.
(2) If the person declares he or she incurred business expenses, the worker then subtracts 50 percent of the gross self-employment income as business expenses.If the household did not incur business expenses, a business expense deduction is not given.
(3) If the person's self-employment enterprise has been in existence for at least one year, the worker divides the net self-employment income by 12.If the person's self-employment enterprise has been in existence for less than one year, the worker divides the net self-employment income by the number of months he or she has been in business.
(d) Self-employment income tax return forms include, but are not limited to:
(1) Form 1040 with Schedule C for sole proprietors and some limited liability companies;
(2) Form 1065 with Schedule 8865 K-1 for partnerships;
(3) Form 1120-S with Schedule K-1 for S corporations; or
(4) Form 1040 with Schedule F for farmers.
(e) Refer to OAC 340:10-3-33 for earned income deductions.
4.Examples of self-employment income calculations include when:
(1) a crop farmer does not receive income from crops every month, but this income represents the farmer's annual support.Income from this source is averaged over a 12-month period; or
(2) self-employment income was received from February 18 to the application month of November, the income is averaged for nine months, February through October.It is correct to count the first month of income received through the last complete month when computing an annualized figure for new self-employment income.
5.When the person is considered self-employed as a contract laborer, receives a set salary that does not vary, and has been employed for a period of time where sufficient data is available from the employer to make a reasonable income projection but not sufficient data to annualize income, earnings are anticipated by multiplying the amount received by the appropriate conversion factor.For example, the person begins a new self-employment contract labor job.He or she works 40 hours per week at $10 per hour.He or she has received two weekly checks in the amount of $400 each.The month is not over, but the employer states the person will continue to be paid $400 per week.It is correct to use $400 X 4.3 to anticipate the person's monthly income.
56.When a person receives a benefit allowance from his or her employer, the worker counts the regular gross earnings plus any excess money left after deducting the insurance cost from the benefit allowance.For example, a person:
(1) is given a $300 benefit allowance to purchase insurance and uses the entire amount to purchase the insurance.None of the benefit allowance is counted as income;
(2) is given a $300 benefit allowance but only purchases $280 in insurance.The remaining $20 that is given to the client as an excess benefit allowance is counted as income; or
(3) has an option of purchasing insurance and would receive a $300 benefit allowance if insurance was purchased, but the person elects not to purchase the insurance.In this situation, the employer makes $150 of the $300 benefit allowance available as cash.The $150 is an excess benefit allowance and is counted as income.
67.(a) Refer to OAC 340:10-3-31 to determine when contract income is considered self-employment income.Refer to (1) of this Section OAC 340:10-3-32(1) when self-employment rules apply.
(b) Income from contract employment received by persons, such as school employees, is annualized over a 12-month period even if when the income is received over a period of time shorter than 12 months.
78.Refer to OAC 340:10-3-40(34).
340:10-3-33. Individual earned income exemptions
Revised 6-1-10 6-1-13
Exemptions from each individual's earned income include a monthly standard work related expense and one-half of the remaining earned income.Exemptions are also allowed for child and adult dependent care expenses the individual is responsible for paying if expenses are not paid through other state and federal funds and the dependent care is in a licensed facility or home.¢ 1Exempt income is income which that by law is not considered in determining need for financial assistance in the Temporary Assistance for Needy Families (TANF) category.Income exempt for one individual is not taken into consideration in determining the need of any other individual for assistance in the State Supplemental Payment (SSP) for the aged, blind, and disabled and TANF.
(1) Work related expenses.The standard deduction for work related expenses such as income tax payment, Social Security taxes, and transportation to and from work, is automatically determined monthly for each full-time or part-time employed member of the assistance unit.¢ 2The standard deduction for work related expenses is:
(A) $240 for an applicant or recipient employed a minimum of 30 hours per week;¢ 3
(B) $120 for an applicant or recipient employed less than 30 hours per week; and
(C) $120 for an individual whose income is considered in determining the amount of the TANF cash assistance. ¢ 4
(2) One-half remainder.For all countable income earned by each member included in the assistance unit, as well as a stepparent who is not included in the assistance unit, one-half of the remaining earned income is exempted per OAC 340:10-3-57(f)(1) 340:10-3-57(e)(1).The one-half remainder exemption is not applied to earnings received by participants while in the Subsidized Employment Program (SEP).An applicant is only eligible for one-half of the remainder exemption when:
(A) an individual in the TANF assistance unit was included in a TANF benefit in any of the 50 states in addition to the Virgin Islands, Puerto Rico, and Guam, during one of the four months preceding the application; or
(B) the total income of all members minus work related expenses and dependent care expenses is less than the TANF need standard found on Oklahoma Department of Human Services (OKDHS) Appendix C-1, Maximum Income, Resource, and Payment Standards, for the appropriate number of individuals.
(3) Dependent care expenses.¢ 5Dependent care expenses are applied after all other earned income exemptions.
(A) Dependent care expenses are not deducted from earnings of participants while in SEP.Dependent care expenses may be deducted when:
(i) suitable care for a child or incapacitated adult included in the TANF assistance unit is not available from responsible individuals living in the home or through other sources;
(ii) the employed TANF assistance unit member whose income is considered in computing the amount of the benefit must purchase care;
(iii) the gross earned income equals or exceeds the work related and dependent care expenses combined;¢ 6
(iv) the child or incapacitated adult receives care in a properly licensed facility or from an approved in-home provider as required by Oklahoma law; and¢ 7
(v) the stepparent of the child(ren) for whom TANF is requested is living in the home and has dependents not included in the assistance unit who are also living in the home per OAC 340:10-3-57(f)(1) 340:10-3-57(e)(1).
(B) Dependent care expenses must be verified.The actual amount paid per month is deducted up to a maximum of $200 for a dependent under the age of two years or $175 for a dependent age two or years of age and older or for an incapacitated adult.In When considering the dependent care expense, only actual work hours and travel time between work and the care facility is allowed.Payment for dependent care is the individual's responsibility.The individual must immediately report any changes in the plan of care.¢ 8
(C) Dependent care provided by another individual in the household who is not a member of the assistance unit may be considered as an expense as long as the caregiver meets applicable state, local, or tribal law laws.
INSTRUCTIONS TO STAFF 340:10-3-33
Revised 6-1-10 6-1-13
1.(a) The work related expenses, one half one-half of the remainder, and adult and child dependent care exemptions are not applied in determining the amount of overpayment for a month any individual included in the assistance unit or whose income is considered in determining the amount of the benefit has failed to make a timely report of earned income.
(b) In calculating these exemptions, dollars and cents are used to determine the monthly amount for each individual's exemption.After the monthly amount of each exemption has been is determined, cents are rounded to the nearest dollar for each exemption.For example:1 cent - 49 cents, round down; 50 cents - 99 cents, round up.The payment standard minus the net income equals the amount of the assistance payment.
(c) Formulas used to determine net earned income to be considered against the budgetary requirements are:
(1) for income from self-employment, gross income:
(A) minus business expenses.See Refer to OAC 340:10-3-32 Instructions to Staff # 2 to calculate business expenses;
(B) minus work related expenses;
(C) minus one half one-half of the remainder;
(D) minus dependent care;
(E) equals net income.
(2) net earned income from employment other than self-employment.Gross income:
(A) minus work related;
(B) minus one half one-half of the remainder;
(C) minus dependent care;
(D) equals net income.
2.The system determines the amount of work related expense allowed based on the number of hours the worker enters in the "TANF Work Hours" field of the Family Assistance/Client Services (FACS) Eligibility Notebook Income tab and the age of the youngest child."TANF Work Hours" field must only be coded with 20, 30, or left blank.
3.An applicant or recipient with a child under age six years of age, employed a minimum of 20 hours, is eligible for the $240 work related expense.
4.See OAC 340:10-3-57(f)(1) Refer to OAC 340:10-3-57(e)(1) for information on allocating or diverting income for these persons.
5.When dependent care services are needed for reasons other than employment, the worker makes a determination of determines dependent care as outlined in expenses per OAC 340:40-7-1.
6.When the work related and dependent care expenses exceed the gross amount of earned income, the worker determines dependent care as outlined in per OAC 340:40-7-1.
7.An approved in-home provider gives care in the child's own home.See Refer to OAC 340:40-13-2 for in-home provider approval guidelines in approving an in-home provider.
8.The worker is responsible for:
(1) helping the family select a caregiver capable of providing adequate dependent care, training, and supervision, per OAC 340:40;
(2) advising the family of their responsibility to pay for dependent care; and
(3) advising the family to immediately report any change in the plan of care.
340:10-3-40. Income disregards
Revised 7-1-12 6-1-13
Income that is disregarded in determining eligibility for Temporary Assistance for Needy Families (TANF) is:
(1) the food benefit allotment under the Food and Nutrition Act of 2008;
(2) any payment received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;
(3) educational assistance including grants, work study, scholarships, fellowships, educational loans on which payment is deferred, veterans education benefits, and the like if receipt is contingent upon the student regularly attending school and the money received is intended to offset the costs of education and expenses as identified by the institution, school, program, or other grantor.¢ 1If the money is not intended to be a reimbursement and is a gain to the client, it is considered income.¢ 2When the educational assistance is serving the same purpose as TANF cash assistance such as when the client receives a stipend for living expenses, the stipend is countable income.The student's classification as a graduate or undergraduate is not a factor;
(4) loans, regardless of use, if a bona fide debt or obligation to pay can be established.
(A) Criteria to establish a loan as bona fide includes an acknowledgment of obligation to repay or evidence that the loan was from a person or financial institution in the loan business.
(B) If the loan was from a person(s) not in the loan business, the borrower's acknowledgment of obligation to repay, with or without interest, is required to indicate that the loan is bona fide.
(C) If the loan agreement is not written, Form 08AD103E, Loan Verification, must be completed by the borrower attesting that the loan is bona fide and signed by the lender verifying the date and amount of loan.
(D) When copies of written agreements or Form 08AD103E are not available, detailed case documentation must include information that the loan is bona fide and how the debt amount and date of receipt was verified;
(5) Indian payments, which include including judgment funds or funds held in trust, distributed per capita by the Secretary of the Interior, Bureau of Indian Affairs (BIA) or distributed by the tribe subject to approval by the Secretary of the Interior.For purposes of this paragraph, per capita is defined as each tribal member receiving an equal amount.
(A) Any interest or investment income accrued on such funds while held in trust or any purchases made with judgment funds, trust funds, interest, or investment income accrued on such funds is disregarded.
(B) Any income from mineral leases or from tribal business investments is disregarded as long as the payments are paid per capita.
(C) Any interest or income derived from the principal or produced by purchases made with the funds after distribution is considered as any other income;
(6) special allowance(s) for school expenses made available upon petition in writing from trust funds of the student;
(7) income from trusts of a child(ren) included in a TANF benefit if it is determined by the worker that funds are to be used for educational purposes for the child(ren).Any court established trust must be examined to determine if the court has restricted the trust for other purposes.The worker must verify at application and redetermination if funds have been withdrawn.¢ 3Any funds withdrawn are treated as lump sum unearned income unless it can be documented the funds were used for the child(ren)'s educational purposes;¢ 4
(8) income from accounts, stocks, and bonds held under the control of a third party if the funds are designated for educational purposes for a child(ren) in a TANF benefit even if when the child(ren)'s name is on the account and the third party holder is required to access the funds;
(9) benefits from state and community programs on aging from Title III and Title V. Title III and Title V are under the Older Americans Act (OAA) of 1965 amended by Public Law (P.L.) 100‑175 to become the OAA as amended 2000. Each state and various organizations receive some Title V funds.These organizations include:
(A) Experience Works;
(B) National Council on Aging;
(C) National Council of Senior Citizens;
(D) American Association of Retired Persons (AARP);
(E) United States (US) Forest Service;
(F) National Association for Spanish Speaking Elderly;
(G) National Urban League;
(H) National Council on Black Aging; and
(I) National Council on Indian Aging.;
(10) unearned income received by a child(ren) in a TANF benefit, such as a needs based payment, cash assistance, compensation in lieu of wages, or allowance from a program funded by the Workforce Investment Act (WIA) including Job Corps income and WIA earned income received as wages;
(11) payments for supportive services or reimbursement for out-of-pocket expenses made to individual volunteers serving as foster grandparents, senior health aides, or senior companions, and to persons serving in the Service Corps of Retired Executives (SCORE) and Active Corps of Executives (ACE);
(12) payments to volunteers under the National and Community Service Trust Act of 1993 (NCSTA), such as AmeriCorps VISTA;¢ 5
(13) the value of supplemental food assistance received under the Child Nutrition Act or the special food service program for children under the National School Lunch Act;
(14) any portion of payments, made under the Alaska Native Claims Settlement Act to an Alaska Native, which that are exempt from taxation under the Settlement Act;
(15) any income of an adult or child(ren) in the family group living in the home and receiving Supplemental Security Income (SSI) is not considered in determining the TANF benefit.His or her individual income is considered by the Social Security Administration in determining eligibility for SSI.This and includes any payment made by the Developmental Disabilities Services Division through the Family Support Assistance Payment Program on behalf of a child(ren) receiving SSI and any other earned or unearned income of the person;
(16) Experimental Housing Allowance Program (EHAP) payments made under Annual Contributions Contracts entered into prior to January 1, 1975, under Section 23 of the US Housing Act of 1937, as amended;
(17) earnings of a child(ren) in a TANF benefit who is a full-time student;
(18) government rental or housing subsidies by governmental agencies, for example, Housing and Urban Development (HUD) which are received in-kind or in cash for rent, mortgage payments, or utilities;
(19) reimbursements from an employer, the Department of Labor, or the Bureau of Indian Affairs, for out-of-pocket expenditures and allowances for travel, training, meals, or supplies, which could include including uniforms, to the extent the funds are used for expenses directly related to such travel, training, meals or supplies;
(20) Low Income Home Energy Assistance Program (LIHEAP) payments for energy assistance and payments for emergency situations under Emergency Assistance to Needy Families with Children;
(21) refunds of federal or state Earned Income Tax Credit (EITC) received after December 31, 2009, as a result of filing a federal or state tax return are exempt as income for 12 months following receipt per the Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010 [Public Law 111-312];
(22) payments made from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.);
(23) payments made from the Radiation Exposure Compensation Trust Fund as compensation for injuries or deaths resulting from the exposure to radiation from nuclear testing and uranium mining;
(24) federal major disaster and emergency assistance provided by Section 5515(d) of Title 42 of the United States Code (U.S.C.) and comparable disaster assistance provided by states, local governments, and disaster assistance organizations;
(25) interests of individual Indians in trust or restricted lands;
(26) income up to $2,000 per calendar year received by individual Indians, which that is derived from leases or other uses of individually owned trust or restricted lands.Any remaining disbursements from the trust or the restricted lands are considered as unearned income;¢ 6
(27) payments received under the Civil Liberties Act of 1988.These payments are made to persons of Japanese ancestry who were detained in internment camps during World War II;
(28) payments made to persons because of their status as victims of Nazi persecution;
(29) interest accrued from the deposits made by an person into an Individual Development Account (IDA) up to $2,000;¢ 7
(30) stipends paid to students participating in the Indian Vocational Education Program (IVEP) through the Carl D. Perkins Vocational and Applied Technology Education Act;
(31) payments made from the crime victims compensation program as amended in section 1403 of the Victims of Crime Act of 1984, Section 10602 of Title 42 of the United States Code (U.S.C.);
(32) reimbursements made to a foster care parent(s) or a potential foster care parent(s);¢ 8
(33) payments as described in Section 1823(c) of Title 38 of the U.S.C. provided to certain persons who are children of Vietnam War veterans;
(34) earned income received as wages, unearned income, cash assistance, allowances, stipends, earnings, compensation in lieu of wages, or an allowance from a program other payments made for participation in WIA or other federally funded by WIA grants and workforce training programs paid to persons of all ages and student status; and¢ 9
(35) child support judgments or arrearage payments received for a child no longer age eligible for the TANF cash benefit.
INSTRUCTIONS TO STAFF 340:10-3-40
Revised 7-1-12 6-1-13
1.Exempt student income includes:
(1) any money from Title IV of the Higher Education Act including federal or state work study;
(2) educational assistance funded through the Veterans Affairs (VA), such as the Montgomery GI Bill;
(3) grants;
(4) scholarships;
(5) subsidized and unsubsidized Stafford loans;
(6) federal PLUS loans;
(7) TRIO grants;
(8) Robert C. Byrd Honors Scholarship Program;
(9) Bureau of Indian Affairs (BIA) student assistance; and
(10) money from the Carl D. Perkins Vocational Education Act, such as the Native American Career and Technical Education Program (NACTEP; and
(11) Workforce Investment Act (WIA).
2.Student income that is not exempt includes:
(1) money that is paid directly to the student and not sent through the bursar's account other than funds listed in Instructions to Staff # 1 of this Section;
(2) institutional work study; or
(3) money intended as an incentive for school attendance or grades rather than the school expenses.
3.Refer to OAC 340:10-3-6 for trust accounts policy.
4.Refer to OAC 340:10-3-28 for lump sum payments policy.
5.Refer to OAC 340:10-2-4(c)(2) for on-the-job training.
6.(a) The client must provide proof of total disbursements received for the previous calendar year to determine how much, if any, of the income counts.If the client received more than $2000, the amount over $2000 is divided by 12 to determine monthly countable income.For example, when total disbursements equaled $2100, the calculation is $2100 minus $2000 equals $100.The $100 is then divided by 12 to determine monthly countable income.
(b) When other household members also receive disbursements, the first $2000 is disregarded for each household member before any income is counted.
7.Refer to OAC 340:10-3-5(a)(10) for Individual Development Accounts.
8.An example of a reimbursement is a pre-service training stipend or Kinship Start Up Stipend (KSUS) payment.Refer to OAC 340:75-7-24.
9.There are numerous programs that exclude income.Some of the more common examples include income received from Youthbuild, Summer Youth, Job Corps, and paid classroom training.A less common example is the Health Profession Opportunity Grant (HPOG) per Section 2008 of Title XX of the Social Security Act.For less common examples, the worker must determine if the program is a federally funded workforce training program.
