49-035 INCOME

.1 To be eligible for CAPI, an individual’s or couple’s countable income must be lower than the appropriate CAPI payment standard. .11 Countable income means the amount that is left after subtracting any exclusions or disregarded amounts from an individual’s gross income, plus that of a spouse or ineligible parent living in the same household. Disregarded amounts can include allocations for ineligible spouses, parents and children in the deeming process. .12 Detailed income rules are found in 20 CFR, Part 416, Subpart K. .2 The definition of income for CAPI purposes is the same as the one used for SSI/SSP and is found in 20 CFR 416.1102. HANDBOOK BEGINS HERE .21 20 CFR 416.1102 states: "Income is anything you receive in cash or in kind that you can use to meet your needs for food, clothing, and shelter. Sometimes income also includes more or less than you actually receive (see §416.1110 and §416.1123(b)). In-kind income is not cash, but is actually food, clothing, or shelter, or something you can use to get one of these." HANDBOOK ENDS HERE .22 Earned income is counted differently than unearned income. .221 SSI/SSP benefits received by a spouse living in the same household as the CAPI applicant/recipient is counted as unearned income based on need. .3 Earned income consists of wages, net earnings from self-employment, payments for services performed in a sheltered workshop or work activities center, and certain royalties and honoraria. .31 Net earnings from self-employment are counted on a taxable year basis. The yearly total is divided by the number of months in the taxable year to arrive at the monthly earnings. .32 Other earned income is counted when it is received or set aside for the employee’s use. .4 Earned income exclusions are applied in the following order: .41 Earned income excluded by other Federal law. Effective 10/16/03 .42 Up to $10 of infrequent or irregular earned income. .43 Up to $400 per month, but no more than $1,620 per year, for blind or disabled children regularly attending school. .44 Any portion of the $20 monthly exclusion that has not been applied against unearned income in the same month. .45 $65 of earned income in a month. .46 Earned income used to pay impairment related work expenses (IRWE) for disabled (but not blind) individuals under age 65 or persons who received CAPI benefits as a disabled individual for the month prior to age 65. .47 One-half of the remaining earned income in a month. .48 Earned income used to meet any expenses reasonably attributable to the earning of income for blind individuals who are under age 65 or who received CAPI benefits as a blind individual for the month prior to age 65. .49 Earned income used to fulfill an approved plan to achieve self support for blind and disabled persons under age 65 or who received CAPI benefits as a blind or disabled individual for the month prior to age 65. .5 Unearned income consists of all income that is not earned income and includes, but is not limited to, annuities, pensions, alimony, support payments, dividends, interest, rental income, prizes, gifts, gambling winnings, and in-kind support and maintenance. .51 In-kind support and maintenance means any food, clothing, or shelter that an applicant receives because someone else pays for or provides it. .511 Shelter includes room, rent, mortgage payments, real property taxes, heating fuel, gas, electricity, water, sewer, and garbage collection services. .52 In-kind support and maintenance is valued in two different ways: .521 When an applicant or recipient is living in another person’s (relative or non-relative) household for an entire calendar month and receives both food and shelter from that person, the applicant or recipient is subject to the reduced needs CAPI payment standard. Effective 10/16/03 (a) The reduced needs payment standard is used regardless of the actual value of the in-kind support and maintenance received in this situation. (b) A person subject to the reduced needs payment standard cannot be charged with any other in-kind support and maintenance income. (c) A person who pays a pro rata share of the household’s food and/or shelter costs cannot be subject to the reduced needs payment standard. .522 In-kind support and maintenance is charged as unearned income subject to the presumed maximum value when it is received in all situations other than the one described in MPP Section 49-035.521. (a) The value of the in-kind support and maintenance income charged equals the lesser of its actual value or the presumed maximum value. (b) In-kind support and maintenance from within the household must be developed when the individual is living in a non- public-assistance household with someone other than a spouse or minor child and either has rental liability or ownership interest and is receiving contributions from others or is either purchasing food separately or earmarking food or shelter payments. (c) In-kind support and maintenance from outside the household must be developed when a third party who does not live in the household makes a payment to a vendor for an item of the household's shelter or food. Two examples are rent-free shelter and rental subsidy. (1) Rental subsidy must be developed when the applicant or recipient has rental liability (including room rentals within someone else's home) and someone in the household is related as parent or child to the landlord or landlord's spouse. .53 Unearned income exclusions are applied in the following order: (a) Unearned income excluded by other federal laws listed in the appendix of Subpart K of 20 CFR Part 416. (Examples include, but are not limited to, Food Stamps, federal housing and utility assistance, education assistance, and certain payments to Native Americans.) Effective 10/16/03 (b) Any public agency’s refund of taxes paid on real property or food. (c) Assistance based on need which is wholly funded by a state or political subdivision. (d) Any portion of a grant, scholarship, or fellowship used for paying tuition, fees, or other necessary educational expenses other than food, clothing, or shelter. (e) Food raised and consumed by the applicant or other household members. (f) Assistance received under the Disaster Relief and Emergency Assistance Act. (g) Up to $20 of irregular and infrequent income received no more than once in a calendar quarter. (h) Alaska Longevity Bonus payments. (i) Payments for providing foster care to an ineligible child who was placed in the applicant’s or recipient’s home by a public or private nonprofit agency. (j) Interest earned on excluded burial funds. (k) In-kind home energy assistance provided by a non-profit agency or utility company. (l) One-third of support payments made to or for a child from an absent parent. (m) The first $20 of any unearned income in a month other than income based on need. (n) Any unearned income used to fulfill an approved plan to achieve self-support for blind and disabled persons under age 65 or persons who received CAPI benefits as a blind or disabled individual for the month prior to age 65. (o) The value of any Federal Housing subsidies. (p) Interest earned on excluded burial space. (q) The value of any commercial transportation ticket for United States travel (including Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands) that is received as a gift. (r) Payments from a state fund to aid victims of crime. Effective 10/16/03 (s) Relocation assistance provided by a state or local government. (t) Hostile fire pay received from one of the uniformed services pursuant to United States Code 310. .6 The following things that may be received by a recipient or applicant are not income because they are not and cannot be converted to food, clothing, or shelter or they represent the proceeds from the sale or conversion of a person’s property. .61 Medical care and services. .62 Social services. .63 Receipts from the sale, exchange, or replacement of a resource. HANDBOOK BEGINS HERE .631 Example: Money received from the sale of a recipient’s automobile is not income; it is a conversion to another type of a resource. HANDBOOK ENDS HERE .64 Income tax refunds. .65 Payments by credit life or credit disability insurance. Payments made under a credit life or credit disability insurance policy on the applicant’s or recipient’s behalf is not income. .66 Proceeds of a loan. Money borrowed or money received as a repayment of a loan is not income. However, interest received on money a recipient or applicant has lent is income. .67 Replacement of income that has been lost, destroyed, or stolen is not income. The original payment that was lost, destroyed, or stolen, however, is counted as income. .68 Weatherization assistance, e.g., insulation, storm doors and windows. .69 Any item received (except food, clothing, or shelter) which would be an excluded nonliquid resource if retained. Effective 10/16/03 HANDBOOK BEGINS HERE .691 Example: Receipt of a car with a current market value of less than $4500 by a person who owns no other vehicles is excluded because it would be an excluded resource and it is not food, clothing, or shelter. HANDBOOK ENDS HERE .7 Deemed income is the amount of another person’s income that is considered to belong to the applicant or recipient regardless of whether the other person actually makes the money available to the applicant or recipient. .71 The steps used in the deeming process are the same as those used to determine SSI/SSP eligibility and benefit amount. Unless otherwise modified by these regulations or other instructions issued by the department, counties must follow the detailed rules found in 20 CFR 416.1160 et seq. These steps are reflected in the CAPI Income Eligibility- Adult form (SOC 452) for spouse-to-spouse deeming and in form SOC 454 for sponsor-deeming. .72 There are three categories of individuals whose income may be deemed to an applicant or recipient. .721 Ineligible spouse who is living in the same household as the applicant or recipient. .722 Ineligible parent(s) who is living in the same household as the minor applicant or recipient. (a) Deeming from an ineligible parent(s) to a child stops effective with the month following the month in which the child attains age 18. .723 Sponsor of a non-citizen, regardless of where the sponsor is living. (a) The sponsor’s income also includes the sponsor’s spouse’s income if the sponsor and the spouse live in the same household. (b) The length of the deeming period depends on: (1) Which version of Affidavit of Support [as defined in MPP Section 49-005(a)] the sponsor signed, and Effective 10/16/03 (2) For a non-citizen who entered the United States on or after August 22, 1996, whether he or she is eligible for basic CAPI or extended CAPI (see MPP Sections 49- 020.2 through .32). (c) Refer to Section 49-037 for detailed instructions on when sponsor deeming applies, length of sponsor deeming periods, and exceptions to sponsor deeming. .73 Income excluded from deeming from an ineligible parent or spouse includes all of the following: .731 All of the income exclusions listed in MPP Sections 49-035.4 and 49-035.53. .732 Any public income-maintenance payments, except SSI/SSP that the ineligible spouse receives, and any income which was counted or excluded in figuring the amount of that benefit. .733 Income used to comply with the terms of court-ordered support. .734 In-kind support and maintenance. .735 IHSS paid to the ineligible spouse or parent(s) for providing chore, attendant or homemaker services to the applicant or recipient. .74 Income excluded in deeming from a sponsor includes only income excluded under other Federal laws as listed in the appendix of Subpart K of 20 CFR Part 416, and certain in-kind income described in 20 CFR 416.1157(c). NOTE: Authority cited: Sections 10553, 10554, and 18943, Welfare and Institutions Code. Reference: 8 CFR 213a.2(e); 20 CFR 416.202; 20 CFR 416.1103; 20 CFR 416.1104; 20 CFR 416.1110 through .1112; 20 CFR 416.1120; 20 CFR 416.1124; 20 CFR 416.1130; 20 CFR 416.1131; 20 CFR 416.1132; 20 CFR 416.1140; 20 CFR 416.1157; 20 CFR 416.1160; 20 CFR 416.1161; 20 CFR 416.1165, 20 CFR 416.1166a(c) and (d)(3); P.L. 104-193, Section 421(b) and (f), (Personal Responsibility and Work Opportunity Reconciliation Act of 1996); Section 1621 of the Social Security Act, 8 US Code Section 1631; Social Security Administration’s Program Operations Manual System, Sections SI 00502.240, SI 00502.280, SI 01320.910, SI 01320.915, and SI 01320.920; and Sections 18938, 18940 and 18941, Welfare and Institutions Code. Effective 10/16/03