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MEDICAL SERVICES – APPENDIX N, FAMILY MEDICALLY NEEDY RESOURCE AND INCOME LEVELS 02-24-16 Page 15 of 19 Income Disregards of a Minor Child  NOTE: The following disregards apply only to income received by a person under 18 years of age who is included in the assistance unit as a minor child. 1. Any unearned income received by a minor child, which is derived from a program, carried out under the Workforce Investment Act of 1998. Such income includes need-based payments, cash payments for supportive services such as transportation, childcare, etc., payments made to participants in tryout employment in lieu of wages, and payments to Job Corps participants or from any welfare to work (WTW) agency. 2. For a maximum of six months per calendar year, the earnings of a minor child, which are derived from a program carried out under the Workforce Investment Act. Once earnings have been disregarded for six months in a calendar year, then such earnings must be considered in determining eligibility for the remainder of the year. 3. For a maximum of six months per calendar year, the non-Work Force Investment Act related earnings of a minor child who is a full-time student. Any month in which the earnings would not affect the unit’s eligibility if such earnings were considered will not be counted as one of the 6 disregard months. C. Earned Income Earned income includes wages, salaries, tips, commissions, and any other payment, including in-kind earned income, resulting from labor or personal service. Earned Income Credit (EIC) payments are totally disregarded as income or resources. This disregard applies equally to advance EIC payments, which are paid with an employee’s regular earnings and to EIC refunds received as lump sum payments. In-kind Earned Income In-kind earned income exists when a person is employed by an individual or business but is paid an in- kind benefit rather than wages (e.g., free rent, groceries, etc.). The value of the in-kind benefit will be considered gross earned income. Verification of Earned Income Verification of earnings from employment will be by check stubs, pay slips, or collateral contact with the employer. Sufficient verification must be obtained so that the actual income of the employee can be determined. The caseworker should not automatically assume that one check stub accurately reflects earnings for an entire month. Verification of payment for the last 60 days will be required. If a person is paid weekly, then the latest 8 consecutive check stubs will be required. If the person is paid every other week or twice a month, then the latest 4 check stubs will be required, and if paid monthly, then the