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Title 5: Centrally Administered Programs Page 58 Iowa Department of Human Services Employees’ Manual Chapter E: Healthy and Well Kids in Iowa (hawk-i) Types of Income Revised August 20, 2010 Interest Income

Interest Income 441 IAC 86.2(2)“b”(9) Exempt the following types of interest and dividend income: ♦ Interest from savings. ♦ Interest on payments from property sold on contract. ♦ Interest payments from conservatorships and trusts.

1. Ms. A has a savings account that pays $5 interest per month. This interest is exempt as income. 2. Ms. B receives $400 each month from property sold on contract. Of the payment, $250 is interest income. The remaining $150 is payment on the principal. Both the principal and the interest part of the payment are exempt as income.

Any amount that is identifiable as interest or dividend income is exempt as income. Unless the interest portion is identified, the entire payment is counted as income. If the interest portion is not identified separately, but the client indicates that the payment includes interest, ask the client to provide necessary verification to exempt the interest portion. Job Corps 441 IAC 86.2(2)“a”(1) & (3) Job Corps participants may work toward a GED or high school diploma, or be involved in postsecondary education or vocational pursuits.

Participants receive room and board, and a monthly salary. Part of the salary is received when it is earned, and part of it withheld until the participant completes or otherwise leaves the program after at least a six-month stay. Participants may also receive a bonus based on their performance in the program.

Count as earned income the ongoing part of the salary in the month in which the participant receives it.

Count both the lump-sum salary payout and the performance bonus as earned income in the month in which the payment is received. (See Recurring Lump Sum Income for details.)