Page 50

CAPS Policy – Income Calculations No.: CAPS/00-8 Effective Date: 10/01/2016 Revised: 10/06/2025 Revision Effective: 10/06/2025

CAPS Policy Manual

Page 50 of 109 • Worker’s Compensation • Alimony (regular and ongoing payments) • Court-Ordered and Direct Child support Payments (when regular and ongoing payments are received) • Veteran’s benefits • Military allotments • Capital gains • Rental income (regular and ongoing payments) • Dividends (regular and ongoing payments) • Retirement/Pension • Commission • Cash Bonuses • Regular or lump sum lottery payments

Note: Gross income includes all income prior to any deductions, including but not limited to, taxes, insurance, retirement, pensions, garnishments, Social Security payments, etc.

8.4.2 The following types of income are not counted when calculating gross income to determine eligibility: Temporary Assistance for Needy Families (TANF) cash assistance, disability/survivors and SSI benefits received by the Social Security Administration, adoption supplements, Low Income Housing and Energy Assistance Program (LIHEAP), Census Bureau income, in-kind donations, tax refunds, cash gifts, Disaster Relief Assistance relative care subsidy, Guaranteed Basic Income (GBI), Universal Basic Income (UBI), AmeriCorps unearned income, and stipends issued by DECAL. Documentation and verification of the actual amounts, however, may be maintained in the case record for reporting purposes.

8.4.3 Income from a child 17 years of age or younger is excluded.

8.5 Self-Employment Income 8.5.1 Parents are considered self-employed if they operate a business or trade as a sole proprietor, independent contractor, partner in a business partnership, or are otherwise in business for themselves, including part-time or gig- based work.

8.5.1.1 Allowable expenses must be verified and considered when determining eligibility for the CAPS program for parents who are self-employed. Allowable expenses can be found in Net Income from Self-Employment (Farm) and Net Income from Self-Employment (Non-Farm) as defined in Definitions and Acronyms.

8.5.1.2 The following expenses are disallowed and should not be considered when determining eligibility for the CAPS program for parents who are self-employed: • Monies set aside for pensions and profit sharing plans • Federal, state and local income taxes paid for employees • Net losses from previous years • Mileage rate on vehicles and other travel costs not related to self-employment • Premiums paid for health/medical insurance • Payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery, and other durable goods • Personal expenses paid out of business accounts