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Low Income Home Energy Assistance Program Division 10 Service 415 Program 415 Chapters 05 - 65 North Dakota Department of Health and Human Services

Annualizing Income 415-25-05-15 (Revised 10/1/2021 ML #3625) View Archives

To determine a household's benefit level, LIHEAP compares a household's income to its estimated annual heat cost. This means that income must be converted to a yearly figure or "annualized." The LIHEAP Application (SFN 529) asks the client for information about his or her income in the current month, the previous month, and anticipated income for the following month. The difference in these figures will determine the method of annualization to be used. (References to the "current month" or the "month of application" will also apply to the month during which a reportable change requires a recalculation of the LIHEAP Share Percentage. [See 40-05.]

If the income between consecutive months is less than $400 yet not exactly the same each month use the month of application and annualize. 1. If the difference between the current month's income and the previous month's income is less than $400, the income would be annualized by the most appropriate of the following methods: a. Regular income - This would include anyone on a fixed income, TANF recipients, wage earners who have not recently changed jobs, etc. Income in this category would NOT be averaged (See "#2," of this section), even though the payroll schedule results in an additional paycheck during every two weeks will sometimes receive three paychecks in one month. Annualization is done by multiplying a monthly payment by 12; a weekly payment by 52; a biweekly payment by 26; and a semi-monthly payment by 24. b. Periodic income - Examples would include interest payments, land rent, farm payments, and some types of seasonal employment.