Page 91

Official source

DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI INCOME SOURCES 07/19 CHAPTER I, PAGE 82

64. Tips Earned/Unearned Income Tips are a gift or a sum of money tendered for a service performed or anticipated. Cash tips may be received in two ways directly, from an individual or indirectly, i.e., a customer designates a tip amount on a credit card. 64.1. Income Treatment Cash tips received by an employee in the course of employment by any one employer are wages if the tips total $20 or more in a calendar month. Tips under $20 per month are unearned income and are subject to the unearned and general income exclusions. Tips are deemed to have been paid at the time such income was received by the employee. Tips that total $20 or more in a calendar month are wages even if the employee receives no regular salary. See Wages Chapter I – 75. 64.2. Verification Accept the individual’s written record of dates and amounts of tips received.

65. Trust Disbursements Unearned Income/Not Income Disbursements from the trust principal to or for the AG individual must be evaluated to determine if they are income to the individual. 65.1. Trust Principal Is Not a Resource If the trust principal is not a resource, disbursements from the trust may be income to the AG recipient beneficiary, depending on the nature of the disbursements. Apply regular income rules to determine when income is available. 65.1.1. Disbursements Which Are Income Cash paid directly from the trust to the individual is unearned income.

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Page 91

Official source

DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI INCOME SOURCES 07/19 CHAPTER I, PAGE 82

64. Tips Earned/Unearned Income Tips are a gift or a sum of money tendered for a service performed or anticipated. Cash tips may be received in two ways directly, from an individual or indirectly, i.e., a customer designates a tip amount on a credit card. 64.1. Income Treatment Cash tips received by an employee in the course of employment by any one employer are wages if the tips total $20 or more in a calendar month. Tips under $20 per month are unearned income and are subject to the unearned and general income exclusions. Tips are deemed to have been paid at the time such income was received by the employee. Tips that total $20 or more in a calendar month are wages even if the employee receives no regular salary. See Wages Chapter I – 75. 64.2. Verification Accept the individual’s written record of dates and amounts of tips received.

65. Trust Disbursements Unearned Income/Not Income Disbursements from the trust principal to or for the AG individual must be evaluated to determine if they are income to the individual. 65.1. Trust Principal Is Not a Resource If the trust principal is not a resource, disbursements from the trust may be income to the AG recipient beneficiary, depending on the nature of the disbursements. Apply regular income rules to determine when income is available. 65.1.1. Disbursements Which Are Income Cash paid directly from the trust to the individual is unearned income.