44-101 INCOME DEFINITIONS

(a) Income is any benefit in cash or in-kind which is reasonably anticipated to be available to the individual or is received by them as a result of current or past labor or services, business activities, interests in real or personal property, or as a contribution from persons, organizations or assistance agencies. To be considered in determining the cash aid payment, income must be reasonably anticipated to be available to needy members of the family in meeting their needs during the SAR and AR/CO Payment Period. Subject to this limitation and the exemptions and exclusions, as specified in Section 44-111 of this chapter, such benefits are taken into consideration as income in evaluating the need of the recipient and in determining the amount of cash aid to which the recipient is entitled.

(b) Separate and Community Income

(1) Separate income is:

(A) Income derived from an interest in separate property; or,

(B) Income resulting from employment or military service rendered prior to the present marriage.

(C) Income received after the rendition of a decree for separate maintenance, as distinguished from a decree of dissolution, or when one spouse is living apart from the other spouse, as well as after dissolution.

(D) Funds awarded a married person from his/her spouse in a civil action for personal injuries are considered that spouse's separate income during the month of receipt, and separate property if retained past the month of receipt. If these funds are paid as a nonrecurring lump sum payment, then the funds shall be treated as property in accordance with Section 42-209.2.

STANDARDS OF ASSISTANCE

(2) Community income is:

(A) Generally income derived from an interest in community property; or,

(B) Income resulting from employment or military service performed during the marriage and not under the situation described in (b)(1)(C) above.

(C) Funds awarded a married person in a civil action for personal injuries are considered community income during the month of receipt and community property if retained past the month of receipt except as provided in Section 44-101(b)(1)(D), 42-203.5, and 42-205.3. If these funds are paid as a nonrecurring lump sum payment, then the funds shall be treated as property in accordance with Section 42-209.2.

(c) Reasonably Anticipated Income

(1) Income is reasonably anticipated when the county determines it is reasonably certain that the recipient will receive a specified amount of monthly income during the SAR and AR/CO Payment Period. This definition applies to both earned and unearned income. See Section 44315.31.

(d) Current Income

(1) Current income is all income which is available during a month without regard to any allowable exemptions or disregards.

(e) Earned Income

(1) Earned income is income received in cash or in kind as wages, salary, employer provided sick leave benefits, commissions or profit from activities such as a business enterprise, farming, etc., in which the recipient is engaged as a self-employed individual or as an employee.

(2) Earned income also includes:

(A) Earnings over a period of time for which settlement is made at one given time, as in the instance of sale of farm crops, livestock, poultry, other than sale of an entire holding.

STANDARDS OF ASSISTANCE

(B) Returns from personal or real property, such as net income from rental of rooms, or board and room.

(C) Earnings under Title 1 of the Elementary and Secondary Education Act, and wages paid under the Workforce Innovation and Opportunity Act (WIOA), (see Section

44-111.21 for disregard applicable to WIOA earned income of a child).

(D) Payments under the Economic Opportunity Act, including payments to beneficiaries of assistance under the Act, through such programs as the Neighborhood Youth Corps, New Careers and Concentrated Employment.

(E) Incentive payments and work allowances under ongoing programs, other than WIOA.

(F) Earnings from On-the-Job Training (OJT).

(3) Earned income does not include:

(A) Grants that do not meet the exemption criteria specified in Sections 44-111.431, and .432.

(B) Benefits (excluding those specified in Section 44-101(e)(1)) accruing as compensation, or reward for service, or as compensation for lack of employment (for example, pensions and benefits, such as veterans benefits).

(C) Incentive payments derived from participation in Welfare-to-Work (see Sections

44-111.3(c) and 44-111.233).

(D) The allowances paid to a recipient in WIOA programs.

(g) Unearned Income

Unearned Income is any income that is not earned income or disability-based unearned income.

(1) Voluntary Contributions

A voluntary contribution is a contribution for which the contributor has no legal liability.

(2) Death Benefits

Death benefits are considered income. Death benefits are those life insurance or burial payments made to a deceased's beneficiary. To determine net income, see Section 44-113.7.

Note: If the amount of the death benefit is of negligible importance in meeting continuing needs, refer to Section 44-111.44.

(3) Interest Income

Interest on a savings account in a bank, savings and loan association, or other institution authorized to accept savings and interest which is received as a result of any contractual obligation.

STANDARDS OF ASSISTANCE

(h) Income In-Kind

Income in-kind is any benefit received other than in cash. It includes the value of need items provided at no charge (see Section 44-115).

(i) Lump Sum Income

Lump sum income is any income received by an AU which is not recurring regular income. Lump sum income is usually nonrecurring in regard to amount and/or source. Lump sum income includes but is not limited to the following: retroactive social insurance payments, real estate commissions such as from sales, income from freelance work, net proceeds from sale of a crop and bonuses.

(1) Lump sum nonrecurring payments are considered property under the semi-annual reporting system and annual reporting system (see Section 42-209.2).

(j) Income Reporting Threshold (IRT)

(1) The level of income that triggers the need for a CalWORKs AU to report a mid-period change in income (see Section 44-316.324).

NOTE: Authority cited: Sections 10553 and 10554, Welfare and Institutions Code. Reference: Sections 10553, 11265.1, 11265.2, 11265.3, 11265.46, 11265.47, 11450.5, and 11451.5, Welfare and Institutions Code; Federal Action Transmittal ACF-AT-94-12; 45 CFR 233.20(a)(6)(iii); 45 CFR 233.20(a)(6)(v)(B); Sallis v. McMahon, Sacramento County Superior Court, case no. 364308, January 30, 1991 and 45 CFR 233.20(a)(3)(iv)(B) and (a)(4)(ii)(d).

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STANDARDS OF ASSISTANCE