6000 - Income

 

There are two types of income, earned and unearned. Income shall include money received from such sources as wages, self-employment, property rentals, pensions, benefits, and contributions.

 

For applications, there shall be ineligibility for cash assistance when there is no budgetary deficit resulting from excess income.

 

For on-going cases, there shall be ineligibility for cash assistance when there is no budgetary deficit resulting from excess income, unless there are earnings included. When earnings are included, eligibility for the Work Incentive payment is to be explored. If eligibility exists, enter and authorize a payment of $50.00 on the KAECSES AFPD screen.

 

Example #1: Eligibility exists in the first month of application, but no benefit was received due to proration. The following month the income which includes earnings, exceeds the TANF budgetary standard. Because there was eligibility in the previous month, even though no benefit was issued, there is eligibility for the Work Incentive payment in the second month.

 

Example #2: Client reports receipt of new employment. The first month of projected income indicates client is eligible, however the grant amount is under $10 and will not be issued. The following month, the gross earnings exceed the TANF budgetary standards, and eligibility for the Work Incentive payment exists.


6100 General Guidelines

 

The following general rules are applicable:

 

  1. Income must be real. To be real, income must be such that its value can be defined and measured.
     
  2. Income value must be established by objective measurement.
     
  3. Income shall be considered available when a client has a legal interest therein and the legal ability to make it available. Earned income is available to the individual producing it and all persons for whom he is legally responsible. Unearned income is available to the individual for whom it is intended and all persons for whom he is legally responsible.
     

  4. The income of all persons whose needs are included in the cash or medical assistance plan, food assistance household (including excluded and disqualified individuals) or child care nuclear family must be considered. In addition, the income of all mandatory filing unit members who are excluded from the assistance plan in accordance with 4113, 4212.2, and 4212.3 must be considered unless otherwise exempted. If, in the month of application, a mandatory filing unit person has left the home, his or her income shall not be considered as being available to the family in that month. Also see 6400.
     

  5. The total income of both spouses shall be considered in determining the eligibility of either or both for assistance if they are living together (including physical separation while maintaining a common life). This provision is not applicable for medical assistance when one or both spouses enter an institutional or HCBS arrangement. (See 8141, 8142 (1) , and 8143 (1) and (2) for institutional arrangements and 8241, 8242 (1) and 8243 (1) and (2) for HCBS arrangements). For TANF and food assistance, this provision would also not be applicable when one or both spouses enter an institutional arrangement but would be applicable to HCBS arrangements if the care is being provided in the home and the couple continues to live together.
     
  1. The income of an eligible or ineligible parent (excluding the stepparent for medical purposes) shall be considered in determining the eligibility of a minor child for assistance if the parent and child are living together. This includes the minor parent, unless that parent is in school per 2230 for TANF, food assistance, and medical purposes. This provision is not applicable to children in institutional or HCBS arrangements. However, for TANF and food assistance, if the child receives HCBS services in the home and continues to live with the parent, the income of that parent must still be considered.
     

    If a parent enters an institutional living arrangement (whether or not the facility is Medicaid approved) for other than a planned brief stay as defined in 8113, his or her income shall be considered in determining the eligibility of a minor child only for the month the arrangement begins. Thereafter, only the minor child's income as well as any income contributed by that parent can be considered in determining the eligibility of that child. If the parent begins to receive HCBS, his or her income shall not be considered for the minor child beginning with the first month of services. However, for TANF and food assistance, if the parent receives HCBS in the home and continues to live with the child, that parent's income must still be considered.

    See 8243 (2) regarding consideration of income upon discharge.
     

  2. A conversion of property from one form to another shall not be considered as income except for the proceeds from a contract for the sale of property.
     

  3. Income shall not be considered both as income and as property in the same month.
     

  4. For Medicaid poverty level, if assistance is requested for a pregnant woman, eligibility is to be determined based on the income of the woman and the father of the unborn child if in the home. If the pregnant woman is a minor, the income of her parents, if in the home, must also be considered. (See KFMAM.)
     

    For MA PW, both eligibility and spenddown must be determined based on the income of the pregnant woman and the father of the unborn child, if present. (See KFMAM)