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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 51 of 109 8.6 Earned Income Verification 8.6.1 CAPS staff will verify earned income (wages) with one or more of the following: • Pay stubs or receipts for the most recent four weeks of earnings • Most recent 1099 form • Most recent W-2 Forms • Employer’s wage records • Quarterly income tax payment receipts to the IRS (for cash paying jobs or self-employment only) • Annual income tax returns when presented in the January-March quarter (for cash paying jobs or self- employment only) • Letter/statement from employer o The letter/statement should be signed and dated on an employer letterhead and include contact information for the employer (phone number, title and relationship to employee), expected/current hire date, number of hours the employee is scheduled/works, and hourly rate of pay (and/or gross salary). • Documentation from other state eligibility programs dated within six months of the CAPS application • CAPS Employment Verification (Appendix F) or itemized statement completed by the employer • Military Leave Earning Statement (LES) – this is the only acceptable form of verification for a member of the military • CAPS Self-employment Report (Appendix CC) • Business ledgers • Business receipts • Previous year tax form if submitting before April 15 • Current tax form if submitting after April 15

Note: The above list is not an all-inclusive list and families have the right to submit other forms of verification/documentation that must be credible to determine income eligibility. Income can also be verified using other eligibility program system sources whenever possible.

8.7 Unearned Income Verification 8.7.1 CAPS staff will verify unearned income with one or more of the following: • Check stubs • Award letters • Social Security records • Worker’s compensation records • Union records • Unemployment insurance claim records • Documentation from other state eligibility programs dated within six months of the CAPS application • Child support system information dated within six months of the CAPS application • Court documents

Note: The above list is not an all-inclusive list and families have the right to submit other credible forms of verification/documentation to determine income eligibility. Income can also be verified using other eligibility program system sources whenever possible.

8.8 Calculations 8.8.1 Income will be calculated using the average amount received over the 12-month eligibility period.