3.605.4 Exempt Unearned Income A.
For the purpose of determining eligibility for Colorado Works, the following shall be exempt from consideration as income: 1. Income Tax refunds. a. The Earned Income Tax Credit (EITC) shall also be exempt for the month in which the EITC payment is received and for the following month. b. County departments shall provide assistance to help clients apply for and receive the federal and State EITC. 2. Third-Party Payments- The value of any third-party payment for medical care or social services paid on behalf of a client. 3. Emergency Assistance- Emergency Assistance received on a one-time basis in cash or in kind from other agencies and organizations. 4. Energy Assistance- Home energy assistance granted to a client by a private non-profit organization or home energy supplier, whether in kind, by voucher, or vendor payment. 5. Personal Care and Home Care- Personal care or home care allowances paid to a recipient or non-recipient spouse, parent, stepparent, or child, from a federal, state, or local government program for in-home supportive services (attendant, chore, housekeeping) shall be exempt as income in determining the amount of attributable non- recipient spouse, non-recipient parent, or non-recipient stepparent income. However, it shall be classified as employment income in determining the attendant's own eligibility for assistance. 6. VA Aid and Attendance- VA Aid and Attendance may be paid to qualified veterans in addition to their regular VA benefit. VA Aid and Attendance is exempt income to the applicant or recipient to determine eligibility for public assistance in the applicant's or recipient's own home, if the VA Aid and Attendance is used for medical supplies and medical or attendant care not covered by Medicare or Medicaid, or other health insurance programs. The remainder is deducted from the assistance grant. (Amounts for attendant care are treated in the same manner as specified in the preceding paragraph.) 7. General Assistance- General Assistance granted to a client by the county department prior to or as a supplement to categorical assistance. 8. Crime Victims Compensation Act. B. General Income Exemptions – Exemptions from Consideration as Income For the purpose of determining eligibility for Colorado Works, the following shall be exempt from consideration as income: 1. A bona fide loan. Bona fide loans are loans, either private or commercial, which have a repayment agreement. 2. Benefits received under the Older Americans Act, Nutrition Program for the Elderly. 3. The value of supplemental food assistance received under the special food services program for children provided for in the National School Lunch Act and under the Child Nutrition Act, including benefits received from the special supplemental food program for Women, Infants and Children (WIC). 4. Home produce utilized for personal consumption. 5. Payments received under Title II of the Uniform Reconciliation Act and Real Property Acquisition Policies Act; relocation payments to a displaced homeowner toward the purchase of a replacement dwelling are considered exempt for up to six (6) months. 6. Experimental Housing Allowance Program (EHAP) payments made by HUD under Section 23 of the U.S. Housing Act. 7. Payments from Indian judgment funds and tribal funds held in trust by the Secretary of the Interior and/or distributed per capita; and the initial purchase made with such funds. 8. Distributions from a native corporation formed pursuant to the Alaska Native Claims Settlement Act (ANCSA) which are in the form of: cash payments up to an amount not to exceed $2,000 per individual per calendar year; stock; a partnership interest; or an interest in a settlement trust. Cash payments, up to $2,000, received by a client in one calendar year is excluded as income. 9. Assistance from other agencies or organizations that are provided for items not included in the need standard or do not duplicate a component of the need standard in total. 10. Major disaster and emergency assistance provided to clients, and comparable disaster assistance provided to states, local governments, and disaster assistance organizations. 11. A child receiving foster care or kinship care funds under Title IV of the Social Security Act shall be excluded from the assistance unit and his or her income shall be exempt from consideration for Colorado Works eligibility and payment. 12. Payments to volunteers serving as foster grandparents, senior health aids, or senior companions, and to persons serving in the Service Corps of Retired Executives (SCORE) and Active Corps of Executives (ACE) and any other program under Title I (AmeriCorps VISTA) when the value of all such payments adjusted to reflect the number of hours such volunteers are serving is not equivalent to or greater than the minimum wage, and Title II and Title III of the Domestic Volunteer Services Act. 13. Training allowances or training scholarships granted by Workforce Innovation and Opportunity (WIOA)or other programs to enable any individual to participate in a training program is exempt. 14. Payments received from the Youth Incentive Entitlement Pilot Projects (YIEPP), the Youth Community Conservation and Improvement Projects (YCCIP), and the Youth Employment and Training Programs (YETP) under the Youth Employment and Demonstration Project Act (YEDPA). 15. Social Security benefit payments and the accrued amount thereof paid to a client when an individual plan for self-care and/or self-support has been developed under the following conditions: a. Supplemental Security Income (SSI) permits such disregard under such developed plan for self-care-support goal, and b. Assurance exists that the funds involved will not be for purposes other than those intended. 16. Income received through the Workforce Innovation and Opportunity Act, including supportive services through that program. 17. Money received from the Radiation Exposure Compensation Trust Fund, P.L. No. 101- 426 as amended by P.L. No. 101-510. 18. Reimbursement of out-of-pocket expenses. 19. Payments received by clients because of their status as victims of Nazi persecution pursuant to P.L. No. 103-286. 20. Individual Development Accounts (IDAs). 21. Distributions from retirement savings accounts. 22. Distributions from health care savings accounts. 23. Income paid to children of Vietnam veterans who were born with spina bifida pursuant to P. L. No. 104-204. 24. Income of A client who is attending school (student in a secondary education or undergraduate degree program) shall be considered as follows: a. Income received from a college work-study program grant shall be exempt. b. All earned income, including earned income from WIOA, that is received by a dependent child who is a full-time student or a part-time student who is not a fulltime employee shall be disregarded. 25. Educational savings accounts. 26. Educational grants, loans, stipends, and/or scholarships. 27. A client receiving SSI payments shall be excluded from the assistance unit and his or her income shall be exempt from consideration for Colorado works eligibility and payment. 28. Refugee resettlement funds and reception and placement money. 29. Interim Cash Payment received through the Colorado Refugee Services Program. 30. Life or disability insurance policies that may have a cash value taken. 31. The benefits provided from the Low-Income Energy Assistance Program (LEAP). 32. A child receiving subsidized adoption funds shall be excluded from the assistance unit and his or her income shall be exempt from consideration for Colorado Works eligibility and payment. 33. Income that is exempt shall also be exempt if received as a lump sum or excluded if designated or legally obligated for legal fees related to obtaining the lump sum payment, medical bills, funeral and burial expenses, or income taxes. 34. Income tax credits when identified as exempt by the state or federal government. 35. Wages earned through subsidized employment programs including employment, apprenticeships, on-the-job training, and transitional jobs.