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COMBINED MANUAL

ISSUE DATE 10/2015

INCOME FROM DISQUALIFIED UNIT MEMBERS

0016.03

MFIP: A disqualified person includes a person who:

● Has been convicted of fraud (including Administrative Disqualification Hearing).

● Has failed to cooperate with SSN requirements.

● Is a fleeing felon.

● Is a parole violator.

● Has a fraud conviction due to residency.

● Is removed from a 2-parent family reaching the 60-month limit due to not meeting criteria for an extension or being out of compliance with Employment Services requirements. See 0011.33.02 (MFIP Hardship Extensions - Removing 1 Parent).

● Has been found guilty of purchasing tobacco or alcohol with an EBT card.

If the disqualified person is an OPTIONAL caregiver, do not count any of the person's income.

Use the procedure below for MANDATORY unit members to determine how much of the disqualified person's income to deem. See 0014.03 (Determining the Assistance Unit), 0014.03.03 (Determining the Cash Assistance Unit).

1. Determine the person's gross income. See 0017 (Determining Gross Income).

2. Disregard the 1st $65 of earned income per wage earner plus half of the remaining earned income.

3. Deduct amounts the disqualified person actually paid to people not living in the same household but whom the disqualified person claims or could claim as a dependent for federal income taxes.

4. Deduct child support, spousal support, child care support, or medical support paid, provided that if there has been a change in the financial circumstances of the disqualified person since the court order was entered, the disqualified person has petitioned for a modification of the support order. Follow the provisions of 0018.33 (Child and Spousal Support Deductions).

5. Deduct an allocation for the needs of other people living in the same household, but not included in the assistance unit. Do not allow an allocation for the disqualified member. See 0018.30 (Allocations) for who is eligible for an allocation and how to determine the amount. Use the Transitional Standard for a unit of the same size, excluding any dependents or other people who are members of the assistance unit.

6. Deem the person's remaining income as unearned income to the unit.

If a disqualified member is the only unit member with earned income, the unit is NOT entitled to the Family Wage Level. See 0016.15 (Income From Ineligible Parents).

DWP: Follow MFIP, EXCEPT when a disqualified person is convicted of fraud or misuse of an EBT card (including Administrative Disqualification Hearing) or failure to cooperate with Child Support Enforcement Services (CSES), the entire household is not eligible for DWP.

SNAP: Apply the following process for the types of disqualified unit members listed below: