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Iowa LIHEAP Policy and Procedures Manual 6.00 Income

Effective 09/01/2023

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be included. If a Federal tax return is electronically filed, the taxpayer should receive a copy of the tax return. If a LIHEAP customer filed electronically and does not have a copy of the actual return, they may call the IRS at 1-800-829-1040 and request a transcript of their tax return. The transcript is free and takes 7-10 calendar days to receive by mail. Or, a taxpayer may go to their nearest IRS walk-in office and ask for a copy of the transcript. Walk-in offices are located in Cedar Rapids, Davenport, Des Moines, Fort Dodge, Sioux City and Waterloo. It should be noted that as of the 2018 tax year, the transcript no longer includes the tax payer’s full name or social security number (SSN); only the last four characters of the person’s last name and the last four digits of their SSN. Therefore, the cover letter, which includes the tax payers’ address, must accompany the transcript. Contact the state office for further guidance, should there be any questions about a tax transcript that was submitted.

A Federal Tax Return Summary (e.g., from H&R Block) is not the same as a tax transcript and cannot be used as such.

6.20 Calculating Income/Determining Eligibility The gross income of all household members age 18 and over residing in the household at the time of application shall be counted to determine eligibility. Verification of countable income is required of all household members before an application is complete. Earned income of individuals under 18, is exempt from countable income unless working full-time and the individual is emancipated and applying as head of household (see Section 5.30).

Whenever possible, the name(s) on the application must match the name(s) on the income documentation. This verification may take the form of pay receipts, payroll checks, or a statement signed by the employer if the salary is paid in cash. Other evidence, such as copies of unemployment payments (agencies may contact Iowa Workforce Development directly to obtain needed documentation) may also be accepted. When the income documentation does not state the applicants’ name but was submitted by the applicant or the worker saw the documentation on a website or in a portal logged into by the applicant, it is to be accepted. Whenever possible, a screenshot or picture of the verification should be included with any non- relevant information redacted.

If a LIHEAP customer refuses to produce proof of stated income and does not authorize the CAA to verify that income, the LIHEAP customer shall not be eligible for program benefits.

When electing to use the most recent 30-day income period, income will be annualized and collected for a 30-day period – count back 30 calendar days, including date of application or the day before the date of application, whichever is most beneficial for the customer. In some cases, such as mailed applications, it will make more sense to count back 30 calendar days from the date the application was signed and/or received by the agency (whichever is most beneficial for the customer). Contact the state for guidance if the date of application and date of receipt by the agency exceeds 60 days.

6.30 Pay/Income Periods

Paid Weekly (once a week): Employees receive a paycheck each week. A weekly pay period results in 52 paychecks in a year.

Paid Bi-Weekly (every other week): Employees receive a paycheck every two weeks. A bi-weekly pay period results in 26 paychecks in a standard year (52 weeks divided by two). In some years, a bi-weekly payroll system might result in an additional pay period, in this case, ignore the extra pay period.

Paid Semi-Monthly (twice a month): Employees receive a paycheck twice a month, usually on the 15th and last days of the month. A semi-monthly pay period results in 24 paychecks in a year (12 months times two).