INCOME

A. If a client's total countable income equals or exceeds the Adult Financial program grant standard, the client shall not be eligible for that specific Adult Financial program. B. Income eligibility determination utilizes four types of income: 1. Earned income; 2. In-kind earned income; 3. Unearned income; and, 4. In-kind unearned income. C. Certain income shall be exempt and shall not be considered as countable income, in part or in whole, as outlined in Section 3.520.786. D. Certain income shall have deductions, herein termed as income “disregards,” applied before determining total countable income as outlined in Sections 3.533, 3.544, or 3.549. E. Certain income shall be deemed from the client’s spouse, parent, and/or sponsor to determine the client’s total countable income as outlined in Sections 3.534, 3.544 or 3.549. F. The total countable income of the client shall be deducted from the AND or OAP grant standard to determine the grant payment amount. G. All income shall be countable in the month it is actually received or legally becomes available, whichever comes first, with the following exceptions: 1. Income that can be anticipated with reasonable certainty concerning the amount and the month it is expected to be received shall be counted in the month anticipated. 2. The anticipated monthly income shall be based on the income received in the previous month, except when the previous month does not provide an accurate indication of anticipated income, or under other circumstances as specified below: a. For new or changed income, a period shorter than a month may be used to project a monthly amount; b. For contract employment, such as in some school systems, where the employees derive their annual income in a period shorter than a year, the income shall be prorated over the term of the contract, provided that the income from the contract is not earned on an hourly or piecework basis; c. For regularly received self-employment income, net income will usually be prorated and counted as received in a three (3) month period, except for farm income. For further information see Section 3.520.783. d. For all other cases where receipt of income is reasonably certain but the monthly amount is expected to fluctuate, a period of twelve

(12) months shall be used to arrive at an average monthly amount; e. Income from rental property shall be considered self-employment income provided the client actively manages the property at least an average of twenty (20) hours per week. 1) Income from rental property shall be considered unearned income if the client is not actively managing the property an average of at least 20 hours per week. 2) Rental income, as self-employment or as unearned income, shall be averaged over a twelve month period to determine monthly income. 3) Income from jointly owned property must be considered as a percentage at least equal to the percentage of ownership or, if receiving more than percentage of ownership, the actual amount received. f. For cases where a change in the monthly income amount can be anticipated with reasonable certainty, such as with Social Security cost of living adjustments (COLA), or other similar benefit increases, the expected amount shall be considered in determining a countable monthly income for the month received.