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Title 5: Centrally Administered Programs Page 65 Iowa Department of Human Services Employees’ Manual Chapter E: Healthy and Well Kids in Iowa (hawk-i) Types of Income Revised July 3, 2009 Student Earnings
Student Earnings 441 IAC 86.2(2)“b”(35)
Exempt the earnings of a person aged 18 or younger who is a full-time student in high school or in an equivalent program. The school the child attends defines “full-time” student status. NOTE: A person who has completed high school and is a student in postsecondary education is not eligible for this exemption.
Employment does not alter a student’s status. The person may be employed during school vacation periods. If the person qualified as a full-time student in the term preceding the vacation period, the earnings are exempt.
When a family indicates on the application or renewal form that a child who has earnings is a full-time student, the child’s earnings are exempt for the entire enrollment period.
If the family reports during the enrollment period that the child is no longer a full-time student, document this the case file to clarify the child’s status at the annual review. The child’s earnings continue to be exempt for the remainder of the enrollment period.
When a family indicates on the application or renewal form that a child who has earnings is not a full-time student, the child’s earnings are counted as earned income for the entire enrollment period.
If the family reports during the enrollment period that the child has become a full-time student, and the family currently pays a premium, a determination will be made to see if exempting the child’s earnings would lower the family’s countable income below 150%. If it would, the child’s earnings will be exempt starting with the month following the report that the child has become a full-time student.
If exempting the child’s earnings would not lower the family’s countable income below 150%, the case file will be documented to clarify the child’s status at the annual review. The child’s earnings will continue to be counted for the remainder of the enrollment period.