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Iowa LIHEAP Policy and Procedures Manual Appendix C – Income Source Guide

Effective 09/01/2023

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LIHEAP customer Melody Sunshine received a $5,000 bonus the current month for a job well done. The verification period being used is the most recent previous 30 calendar days. Because the bonus was for work done this month and it was received during the verification period, the entire $5,000 is counted as income.

Example #2 LIHEAP customer Melody Sunshine received a $5,000 annual bonus. The verification period being used is the most recent previous 30 calendar days. The bonus received during the verification period and was for the most recent 12 months. The LIHEAP customer is paid semi-monthly (twice a month/24 paychecks in a year). The bonus is to be pro-rated by dividing $5,000 by 24, which equals $208.33 per pay period. Two pay periods are to be counted as income.

NOTE: Earned income is not considered a fixed income source. Medicare, and any local taxes.

If a paystub includes garnishments, the gross amount received before the garnishment is deducted must be counted as income.

A DDA (Demand Deposit Account) bank statement alone does not suffice as proof of income. The LIHEAP customer must obtain a statement from the company making the deposits, which lists the checks and amounts to confirm the deposits. EITC (Earned Income Tax Credit) A refundable federal or state tax benefit designed to help low income workers in creating their financial stability and maintain their independence from the welfare system. It is also known as E.I.T.C.

Although EITC is excluded from income for the LIHEAP program, receipt of EITC must still be tracked in the software system for CSBG purposes.

X

ESG (Emergency Shelter Grant) ESG recipients and sub-recipients use Emergency Shelter Grants Program funds to rehabilitate and operate emergency shelters and transitional shelters, provide essential social services, and prevent homelessness. This is NOT considered subsidized housing.

X

Employers Fringe Benefits

This is a non-cash benefit paid for by the employer, such as food and housing.

X