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Title 5: Centrally Administered Programs Page 57 Iowa Department of Human Services Employees’ Manual Chapter E: Healthy and Well Kids in Iowa (hawk-i) Types of Income Revised July 3, 2009 Individual Development Accounts

Count income deposited into an Individual Development Account (IDA) when determining hawk-i eligibility. The income is countable at the time it is received. The fact that the person may choose to deposit some or all of it in an IDA does not make the income exempt. In-Kind Earned Income 441 IAC 86.2(2)“b”(17)

Exempt earnings in kind. “In-kind” earnings means: ♦ The person performs a service and, in exchange, receives something the client would normally have to pay for, and ♦ The person for whom the service is provided would normally have to pay for the service.

1. Mrs. T works in a restaurant and receives meals as part of her salary. Her paycheck stub lists the value of the meals as $10 per week. Exempt the $10 as earned income in kind. 2. Mr. K receives reduced rent in exchange for managing an apartment building. His apartment would normally rent for $350, but Mr. K pays only $200. Exempt the difference of $150 as earned income in kind.

In-Kind Unearned Income 441 IAC 86.2(2)“b”(17)

Exempt unearned income in kind. Monies paid to a third party on the client’s behalf are considered as unearned income in kind.

1. Ms. A’s mother pays Ms. A’s rent directly to Ms. A’s landlord. This is unearned income in-kind and is not considered in determining eligibility for Ms. A. 2. Ms. B’s mother, who does not live with Ms. B, gives Ms. B $200 to use to pay her rent. Ms. B pays this money to her landlord. However, since this money passes through Ms. B’s hands, count it as a gift when determining her eligibility.