Guidelines for Anticipating Income 510-05-90-15

(Revised 3/1/12 ML #3312)

View Archives

Use prospective budgeting to determine eligibility based on the income which is anticipated to be received and the expenses that are anticipated to be incurred. Anticipated income and expenses are an estimate based on reasonable expectations and knowledge of past, current, and future events. The following guidelines are offered to assist in this determination.

An employed individual who does not expect a significant change should have the previous month's earnings and employment deductions verified by pay stub or employer's statement. The previous month’s earnings serve as the basis for estimating the income likely to be received during the initial prospective month. To illustrate, a person applies for assistance on November 15 and reports there should be no significant change in income and deductions from the month of October. The October income should be verified to anticipate the income and deductions likely to be available in November.

If the applicant or recipient indicates that he or she expects to begin working or that a material change in income is likely, the statement shall be documented as the basis for the " best estimate " of income to be received. The employer may be contacted, with the applicant's or recipient’s permission, to verify the statement that income will be reduced or increased during the prospective month. Or, the applicant or recipient may provide other documentation supporting the expected change.

If new income is expected during the prospective month, the worker needs to arrive at a "best estimate" of the income likely to be available. If the income is from employment in which "tips" are likely, these also need to be estimated.

When anticipating income, also anticipate bonuses, profit sharing, and other such additional income whenever possible. This type of income can be anticipated based on prior receipt of such income. The amount anticipated can be estimated based on amounts previously received, unless factual information suggests otherwise.

To summarize, the method(s) used to anticipate income will vary according to the circumstances in each case. It is the responsibility of the county agency to decide on the best approach. Whatever the method used, it is imperative that the rationale for arriving at estimated income be clearly and thoroughly documented in the case file.