10:87-6.9 Income determination

(a) For the purposes of determining the household's eligibility and basis of issuance, the CSSA shall consider the income already received by the household during the certification period and any anticipated income that the household and the CSSA are reasonably certain will be received during the remainder of the certification period. Income from a new source anticipated after application shall not be counted if the household is destitute (see N.J.A.C. 10:87-6.17 through 6.19). (b) If the amount of income which will be received, or when it will be received, is uncertain, that portion of the household's income which is uncertain shall not be counted by the CSSA. For example, a household anticipating income from a new source, such as a new job or public assistance benefits recently applied for, may be uncertain as to the timing and amount of the initial payment. These moneys shall not be anticipated by the CSSA unless there is reasonable certainty concerning the month in which the payment will be received and in what amount. Households shall be advised to report all changes in gross monthly income in accordance with N.J.A.C. 10:87-9.5(b). 1. If the exact amount of the income is not known, the portion that can be anticipated with reasonable certainty shall be considered income. 2. In cases where the receipt of income is reasonably certain but the monthly amount may fluctuate, the household may elect to average income in accordance with (f) below. (c) Income received during the most recent 30-day period shall be used as an indicator of anticipated income. However, the CSSA shall not use past income as an indicator of income anticipated for the certification if changes in income have occurred or can be anticipated. 1. If income fluctuates to the extent that a 30-day period alone cannot provide an accurate indication of anticipated income, the CSSA and the household may use a longer period of past time if it will provide a more accurate indication of anticipated fluctuations in future income. 2. If the household's income fluctuates seasonally, it may be appropriate to use the most recent season comparable to the certification period, rather than the last 30 days, as one indicator of anticipated income. The CSSA shall exercise particular caution in using income from a past season as an indicator of income for the certification period. In many cases of seasonally fluctuating income, the income also fluctuates from one season in one year to the same season in the next year. 3. In no event shall the CSSA automatically attribute to the household the amounts of any past income. The CSSA shall not use past income as an indicator of anticipated income when changes in income have occurred or can be anticipated during the certification period. 4. For the purpose of determining countable energy assistance payments, the CSSA shall consider similar assistance received by the household in the previous certification period, and project those monthly amounts over the next certification period. If the CSSA cannot be reasonably certain that the household will receive those moneys, then those funds shall not be counted. The CSSA shall also ascertain that the household's anticipated utility expenses, during any one month of the forthcoming certification period, will exceed the amount of excluded energy assistance. (d) Income anticipated during the certification period shall be counted as income only in the month it is expected to be received, unless the income is averaged in accordance with (f) below. 1. Whenever a full month's income is anticipated but is received on a weekly or bi- weekly basis, the CSSA shall convert the income to a monthly amount by multiplying weekly amounts by 4.333 and bi-weekly amounts by 2.167. 2. Non-recurring lump-sum payments shall be counted as a resource starting in the month received and shall not be counted as income (see N.J.A.C. 10:87-4.3 and 5.9(a)13). 3. Wages held at the request of the employee shall be considered income to the household in the month the wages would otherwise have been paid by the employer. However, wages held by the employer as a general practice, even if in violation of law, shall not be counted as income to the household, unless the household anticipates that it will ask for and receive an advance, or that it will receive income from wages that were previously held by the employer as a general practice and that were, therefore, not previously counted as income by the CSSA. 4. Advances on wages shall count as income only if the household anticipates that it will ask for and receive such an advance. Such advances on wages shall count as income in the month received only if reasonably anticipated. 5. Households receiving public assistance payments, (for example WFNJ or SSI) or income on a recurring monthly or semi-monthly basis shall not have their monthly income varied merely because of changes in mailing cycles or pay dates or because weekends or holidays cause additional payments to be received in a month. (e) Households which derive their annual income by contract in a period of time shorter than one year shall have that income averaged over a 12-month period, provided the income from the contract is not received on an hourly or piecework basis. For example, a teacher has a 12-month contract and only works 10 months of the year (September through June), that income shall be prorated over a 12-month period. These households may also include, but are not limited to, school employees, sharecroppers, and regular farm employees. However, these provisions do not apply to migrant or seasonal farm workers or to destitute households. Contract income which is not the household's annual income and is not paid on an hourly or piece work basis shall be prorated over the period that the income is intended to cover. For example, if an individual such as a crossing guard, has a 10-month contract and worked only those 10 months, that income shall be averaged over a 10-month period. (f) Households, except destitute households, may elect to have income averaged. Income shall not be averaged for a destitute household since averaging would result in assigning to the month of application income from future periods that is not available to the destitute household for its current food needs. 1. To average income, the CSSA shall use the household's anticipation of income fluctuations over the certification period. The number of months used to arrive at the average income need not be the same as the number of months in the certification period. For example, if fluctuating income for the past 30 days and the month of application are known and, with reasonable certainty, are representative of the income fluctuations anticipated for the coming months, the income from the two known months may be averaged and projected over a certification period of longer than two months. (g) Households receiving earned and unearned educational income shall have such income, after exclusions, averaged over the period for which it was intended to cover. The CSSA shall apply countable educational income beginning with the first month in which the student expects to receive those funds. In the event that the student cannot anticipate, with reasonable certainty, when he or she will receive the student income, then receipt of that income shall be treated and processed as a client reportable change, as per N.J.A.C. 10:87-9.5(b) and (c). (h) With certain exceptions required by Federal statute, any Disregarded Child Support (DCS) payment (see N.J.A.C. 10:87-5.7(b)2) which is issued to a household in a particular month shall be utilized to calculate the following month's NJ SNAP benefit. With the exception of those categories listed in (h)1 through 4 below, retrospective budgeting of DCS payments shall be utilized at all times, including during initial application and recertification. The exceptions, which require that DCS payments be treated prospectively, are as follows: 1. Migrant or seasonal farmworker households; 2. Households in which all members are homeless individuals; 3. Households with no earned income in which all adult members are elderly or disabled; and 4. Households residing on Indian reservations. (i) The procedures for determining income from self-employment are described at N.J.A.C. 10:87-7.1 through 7.6. History HISTORY: Amended by R.1979 d.459, January 1, 1980. See: 12 N.J.R. 40(c). (a)3i: Changed "2.26" to "2.167". Amended by R.1981 d.97, effective April 9, 1981. See: 13 N.J.R. 96(c), 13 N.J.R. 228(a). (a)3ii: "N.J.A.C. . . . 10:87-5.9(a)10 was (a)9". Amended by R.1989 d.121, effective February 21, 1989. See: 20 N.J.R. 2689(a), 21 N.J.R. 511(b). Substantially amended. Amended by R.1993 d.62, effective February 1, 1993. See: 24 N.J.R. 3207(b), 25 N.J.R. 584(a). In (c), added 4. In (g), describes student income for purpose of determining food stamp eligibility and level of benefit. Amended by R.1998 d.498, effective October 5, 1998. See: 30 N.J.R. 1928(a), 30 N.J.R. 3669(b). In (d), rewrote 5; in (g), rewrote the first sentence, and substituted a reference to educational income for a reference to grants, loans and other scholarships in the second sentence; and added (h). Amended by R.1999 d.6, effective January 4, 1999. See: 30 N.J.R. 3451(a), 31 N.J.R. 69(a). In (d)5, substituted a reference to WFNJ for a reference to AFDC and GA. Amended by R.2004 d.181, effective May 17, 2004. See: 36 N.J.R. 28(a), 36 N.J.R. 2425(a). Rewrote the section. Amended by R.2007 d.129, effective May 7, 2007. See: 38 N.J.R. 4374(a), 39 N.J.R. 1719(a). Rewrote (e), and added (i). Administrative change. See: 44 N.J.R. 1529(a).