Kansas Economic and Employment Services Manual

13360 Income Eligibility - The combined gross income of all persons living at the residence address shall not exceed 150% of the federal poverty level. (See 13362.) Countable income includes earnings by adults, unearned income of adults and children, public assistance benefits, social security benefits, interest earnings and most other income. In determining income eligibility, gross income received or intended for the month of application is countable.

Regular income received on a monthly basis must be counted based on the monthly amount. Income received other than monthly (e.g., weekly, bi-weekly, etc.) must be counted based on an income conversion process. Income expected to be received (e.g., hourly rate x hours to be worked) must be converted to establish a standard amount of monthly income by multiplying income by 2.15 if paid every two weeks or bi-weekly, or by 4.30 if paid weekly.

Intermittent income must be counted in the month it is intended for, regardless of when it is received. Intermittent income is income that is received less than on a monthly basis, such as quarterly or semi-annually.

Self-employment income is considered using gross receipts minus a 25% standard deduction for expenses, except for instances where the client disagrees with the 25% standard deduction and requests the option of using actual income producing costs as a deduction from gross self-employment earnings in place of the standard deduction. An average monthly income will be established. Refer to 6313 and 7122.

Individuals on a LIEAP application may be "Deemed Income Eligible" if they have an active Food Assistance or TANF case in the month that they apply for LIEAP and the income reflected in the Food Assistance/TANF case has been verified. Any adults not deemed income eligible would be subject to income verifications as detailed earlier in 13360. It is possible that the combination of countable verified income for those deemed income eligible and the income of any adults not deemed income eligible could still exceed the allowable income guidelines.

Deemed Income Eligible individuals are still subject to all other eligibility criteria. Since gross income of all adult household members is a factor in determining the benefit level, verified countable income for each deemed income eligible individual in addition to countable income for any individuals not deemed income eligible must be determined  to allow for the calculation of an appropriate benefit.

When a household member is on strike from employment, the striker's income is measured using the calendar month prior to the strike's onset. Income for all other household members will be considered for the month of application, except for self-employment as described above.

There are no asset or resource tests.

13361 Exempt Income - Only the following incomes are exempt in determining eligibility:
 

1. Achieving a Better Life Experience (ABLE) Act Accounts - Any amount (including earnings thereon) in the ABLE account or distributions from the ABLE account are exempt as income in the month received and as a resource in the following months;

2. Adoption Support, Foster Care and Permanent Custodianship Subsidy - Foster care and Permanent Custodianship Subsidy payments are exempt if the child(ren) is not included in the household. Adoption support payments are not exempt;

3. Agent Orange Settlement payments;

4. Alaska Native Claim distributions;

5. Aleut Income under Title II of P.L. 100-383;

6. Census Earned Income - The earned income of temporary census employees shall be exempt;

7. Charitable Donations - Any cash or in-kind donation based on need not to exceed $300 in any quarter starting in January, April, July or October which is received from one or more public or private nonprofit charitable organizations are exempt as income in the month received and as a resource in the following months. Amounts in excess of $300 shall be considered as countable unearned income;

8. Child Care subsidy benefits paid to a parent or caretaker to be used for purchasing child care;

9. Children with Spina Bifida Whose Parents are Vietnam Veterans payments pursuant to P.L. 104;

10. Combat Pay - Additional pay received by military personnel as a result of deployment to a combat zone is exempt. Refer to Policy Memo 05-03-01 for details on determining countable income for households with a member in a combat zone. Also, refer to Combat Zones Approved for Tax Benefits for a current list of combat zones;

11. Crime Victims Fund payments pursuant to P.L. 103-322;

12. Cryptocurrency;

13. Death Benefits -

    1. All Programs - Death benefits (OASDI, VA, RR, or other burial benefits) when used toward the cost of burial are exempt as income for the month received and as a resource in the following months.

    2. Payments occasioned by the death of another person to the extent that the payments have been expended or committed to be expended for purposes of the deceased persons last illness and/or burial. Such payments include, but are not limited to, proceeds from a life insurance or burial insurance policy, gifts, and inheritances.

    3. For the purposes of this provision, a person's last illness is defined as the illness which resulted in the person's death. Death resulting from injuries would not be considered in this definition. Medical expenses that can be reasonably attributed to the persons last illness shall be excluded in determining the amount of payment that is considered to be available. Documentation is required.

14. Disaster payments provided by federal, state or local governments or by disaster assistance organizations in conjunction with a presidentially declared disaster;

15. Earned income of child household members under age 18;

16. Earned Income Tax Credits - Earned income tax credits received as a lump sum refund are exempt as income in the month received and as a resource in the following twelve months;

17. Educational income - Any grant, scholarship or loan for educational purposes from any source including, but not limited to PELL grants, SEOG's, GLS's, Carl D. Perkins Vocational ACT grants, college work study, grants or loans from civic organizations, and private student loans from family or nonfamily members (Monies received as monthly living benefits from stipends or special programs such as Veterans Educational Income (GI Bill), Social Security to survivors based on educational participation, or to Native Americans through Tribal sources or Bureau of Indian Affairs shall not be exempt under this provision as they are not considered grants, loans, or scholarships.);

18. Family subsidy payments which are provided through the Mental Health and Developmental Disabilities Commission or Family Support payments provided through the Prevention and Protection Services Commission;

19. Filipino Veterans Equity Compensation fund - For certain veterans and the spouses of veterans who served in the military of the Government of the Commonwealth of the Philippines during World War II. The compensation fund offers one-time payments of up to $15,000 to eligible persons.

20. Foster Grandparent Program payments provided to volunteers;

21. Gifts - irregular, occasional or unpredictable monetary gifts not exceeding $50 per month;

22. Health Profession Opportunity Grants (HPOG) - The Patient Protection and Affordable Care Act (ACA) amended the Social Security Act to provide demonstration project authority to address health professions and workforce needs. HPOG was awarded to 32 entities, including State agencies, workforce investment boards, community-based organization and institutions of higher education. Section 5507 of ACA specifically excludes any aid, services, or incentives provided to an eligible beneficiary under the HPOG from being counted as income in determining eligibility and benefits for any means-tested program. In Kansas, the Kansas Health Profession Opportunity Project (KHPOP) meets this criteria, and any payments received from the program are exempt as income;

23. Holocaust Survivors Reparation payments paid by foreign governments;

24. Housing rental assistance including Section 8 utility allowances or other "negative rent" payments made to tenants of subsidized housing under HUD or FHA regulations;

25. Individual Development Accounts - monies deposited as authorized matching funds, accrued interest, or withdrawn funds for its intended purposes. See 6410;

26. Independent Living Foster Care Payments - Independent living payments are exempt as income for the independent living foster care child.

27.  Indian monies:

    1. $2,000 Per Year - Up to $2,000 per calendar year of income received by individual Indians, which is derived from leases or other uses of individually-owned trusts or restricted lands pursuant to P. L 103-66 and P. L. 97-458 is exempt as income in the month received. For purposes of this provision, the exclusion of income shall be applied only to months for which an eligibility determination is being made. For income that is received monthly or more frequently, the exclusion shall be applied beginning with the first month of eligibility determination until the $2,000 limit is attained. For intermittent income situations, the income up to $2,000 shall be subtracted from total intermittent income for the appropriate period with the remainder prorated to determine the countable monthly amount. These payments are exempt as income in the month received and as a resource in the following months for the Food Assistance Program.

    2. Secretary of Interior - Any funds for an Indian tribe which are distributed or held in trust by the Secretary of the Interior (including Indian judgment funds), including interest and investment income accrued on money held in trust and initial purchases made with any funds distributed are exempt as income in the month received and as a resource in the following months.
       
       Contact with the Bureau of Indian Affairs will be necessary to verify that the funds are exempted or are another type of benefit that must be counted as income.

    3. Aroostook Band - Payments granted to the Aroostook Band of Micmac Indians under Public Law 102-171 are exempt as income in the month received and as a resource in the following months.

    4. Assiniboine Tribe - Payments awarded to the members of the Assiniboine Tribe of the Fort Belknap Indian Community or the Assiniboine Tribe of the Fort Peck Indian Reservation, received pursuant to P.L. 98-124 (enacted 10-83) are exempt as income in the month received and as a resource in the following months.

    5. Chippewa Tribe - Payments awarded to the members of the Red Lake Band of Chippewa Indians, received pursuant to P.L. 98-124 (enacted 10-83)  are exempt as income in the month received and as a resource in the following months.

    6. Navajo and Hopi - Payments of relocation assistance to members of the Navajo and Hopi Tribes under P.L. 93-531 are exempt as income in the month received and as a resource in the following months.

    7. Ottawa Tribe - Payments received from the disposition of funds to the Grand River Band of Ottawa Indians (P.L. 94-540) are exempt as income in the month received and as a resource in the following months.

    8. Passamaquoddy Tribe - Payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their members received pursuant to the Maine Indian Claims Settlement Act of 1980 (enacted 10-83) are exempt as income in the month received and as a resource in the following months.

    9. Yakima Nation and Apache Tribe - Payments by the Indian Claims Commission to the Confederated Tribes and Bands of the Yakima Indian Nation or the Apache Tribe of the Mescalero Reservation (P.L. 95-433) are exempt as income in the month received and as a resource in the following months.

28. In-kind income such as food assistance, commodity foods, school lunches, energy assistance or other assistance payable by a third party directly to a vendor rather than to the applicant;

29. Interest accrued from the interest-bearing accounts of children under 18;

30. Interest and Dividends

    1. Interest and dividends - If interest and dividends are received irregularly, are unpredictable and are less than $30 in a quarter, they are exempt.

    2. Interest to a Burial Fund - Interest credited to an exempted burial fund or to a prepaid burial space contract account is exempt as income in the month received and as a resource in the following months. See 5430 (9).

31. Japanese aliens - payments granted to certain United States citizens of Japanese ancestry and resident Japanese aliens under Title I of P.L. 100-383;

32. JTPA (Job Training Partnership Act) - unearned income received from this program (e.g., tool allowance, travel allowance);

33. Loans, including loans from private individuals as well as commercial institutions, including deferred educational loans;

34. Lump sums - Lump sum payments are exempt as income in the month received. A lump sum payment is defined as a nonrecurring one-time payment which, if received regularly, would be non-exempt. Classification as a lump sum is dependent on its unpredictability either in amount or time of receipt which prohibits consideration as intermittent income. Lump sum payments may be from (but not limited to) the following sources:

    1. Income tax refunds, rebates, or credits when paid as a lump sum benefit. Tax refunds are exempt as a resource in the following twelve months.

    2. Other payments, such as retroactive cash assistance, unemployment compensation, Social Security, SSI, or railroad retirement benefits.
       
       NOTE: Retroactive SSI benefits in an amount that equals or exceeds 12 times the federal benefit rate to an eligible SSI individual are paid in installments. The retroactive payments are paid in no more than 3 installments and are made at 6-month intervals. Since these installments replace what would have been paid as a single lump sum payment,  installment payments for retroactive SSI benefits are exempt as income. If SSA requires that the SSI lump sum be placed in a separate account, the entire amount of the lump sum shall be exempt, including any portion of the lump sum that is for the current income month.

    3. Lump sum insurance benefit, including proceeds from crop insurance.

    4. Refunds of security deposits on rental properties or utilities.

    5. Bonus or severance pay paid in a lump sum after employment has been terminated.

    6. Retroactive child support rebate payments including CSS checks (URA) received by the client while the TANF case is in open status.

    7. VA pension benefit adjustments paid in a lump sum.

    8. Lump sum child support arrearage payments.

    9. Excess insurance payments received through the Medicaid Program.

    10. The one-time $250 Social Security, SSI, Railroad Retirement and Veteran's payments made as a result of the American Recovery and Reinvestment Act of 2009 (economic stimulus legislation). The legislation exempts these payments as income and also exempts them as a resource for the month of receipt and the following nine months.

    11. The $1,000 payment received in lieu of TANF benefits under the Diversion Payment Program Option described in 1118. The payment is considered exempt as income and as a resource only in the month received.

    12. Gate money received by persons when they leave prison.

35. Mineral Rights and Oil Royalties - Mandatory deduction of severance taxes from mineral rights and oil royalty income shall not be included as income.

36. National Community Services Act - Payments received under Title I of the National and Community Services Act of 1990 (P.L. 101-610). Programs in Kansas funded under this Act are the Youth Service Crops programs operated through Donnelly College (Kansas City, KS), the Kickapoo Tribal Nation, the Topeka Youth Project and AmeriCorp. All payments are exempt except on-the-job training payments received by persons age 19 or over, or received by persons under the age of 19 who are not under the parental control of another household member;

37. Older Americans Act (All Programs) - Payments received via the Community Services Employment Program funded under Title V of the Older Americans Act of 1965. Kansas Programs funded under Title V include: Green Thumb, Project Ayuda (serving Wyandotte, Johnson, Douglas, and Shawnee counties), and the Senior Community Service Employment Program through the Midway Chapter of the American Red Cross (serving Sedgwick, Reno, Harper, Kingman, Butler, Cowley, Harvey and Sumner Counties);

38. PASS Plan (Plan to Achieve Self-Support) - Social Security Disability benefits received pursuant to a PASS Plan are exempt. Wages placed into a PASS Plan are also exempt;

39. Radiation exposure - Payments made under the Radiation Exposure Compensation Act.
    The law compensates individuals for injuries or deaths resulting from exposure to radiation from nuclear testing and uranium mining in Arizona, Nevada and Utah;

40. Refugee Resettlement Program Funds - Match Grant funding and Reception and Placement (R&P) funding provided to individuals by a refugee resettlement agency are exempt as income in the month received and as a resource in the following month.

41. Rehabilitation services payments by DCF Kansas Rehabilitation Services;

42. Reimbursements- Reimbursements for out-of-pocket expenses are exempt as income in the month received and as a resource only in the following month.
    Examples of exempt reimbursements are ones for job or training-related expenses such as travel, per diem, uniforms, and transportation to and from the job or training site. Reimbursements that are provided over and above the basic wages for these expenses are excluded; however, these expenses, if not reimbursed, are not otherwise deductible. Reimbursements for the travel expenses incurred by migrant workers are also excluded.
    
    Also exempt are medical and dependent care reimbursements, reimbursements to students for specific education expenses such as travel or books, and jury duty payments.
    
    To be exempt, these payments must be provided specifically for an identified expense other than normal living expenses and used for the purpose intended. When a reimbursement, including a flat allowance, covers multiple expenses, each expense does not have to be separately identified as long as none of the reimbursement covers normal living expenses.

43.  Relocation Assistance - Payments received under the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 are exempt as income in the month received and as a resource in the following months. The applicant's or recipient's equity in a home is to be disregarded to the extent that such equity was purchased with payments under the Uniform Relocation Act of 1970.

44. Renal Dialysis - Special incentive payments received for renal dialysis patients for care in their own home are exempt as income in the month received.

45. Repair or Replacement Payments - Income from a one-time payment or a portion of a one-time payment from a settlement for repair or replacement of property or other settlement, including legal services and medical insurance payments, when the settlement is used for the intended purpose within 6 months of its receipt. This income is exempt as income in the month received and as a resource in the following 6 months.

46. Repatriated Americans - Payments received from the Repatriated Americans Programs are excluded as income in the month received if the person receiving the payment is required to sign an agreement to repay the funds received. If this agreement is not signed, the payments must be counted as regular unearned income. (Refer to 1722.)

47. Ricky Ray Hemophilia Act Fund - Payments made pursuant to the Ricky Ray Hemophilia Relief Fund Act, P.L. 105-364 are exempt as income and as a resource for all programs. The payment is a one-time amount of $100,000.
    
    NOTE:  Interest earned on these exempt funds is not exempt as income. See 6220 #12.

48. Savings withdrawn from an IRA or 401K;

49. SCORE or ACE - Payments received through Service Corps of Retired Executives or Active Corps of Executives are exempt as income in the month received and as a resource in the following months.

50. Senior Health Aides - Payments received through Senior Health Aides or Senior Companions are exempt in the month received and as a resource in the following months.

51. Shared Living - In shared living arrangements, cash paid from one family to another toward the total cost of shelter is exempt as income in the month received. The portion of shelter costs paid shall not be an allowable expense for the family receiving the payment.

52. Summer EBT - The value of the benefits issued are exempt as income in the month received and as a resource in the following months.

53. Tax Refunds - Legislated tax rebates and refunds are exempt as income in the month received.
    
    Tax rebates issued via the Economic Stimulus Act of 2008 are exempt as income and a resource in the month received and exempt as a resource in the following two months.

54. Trust for a VA Child - Money for a child that is held in trust by the VA and determined by the VA unavailable for subsistence needs is exempt as income in the month received and as a resource in the following months.

55. VA Payments

    1. VA benefits resulting from unusual medical expense (UME) deductions are exempt as income in the month received.
       
       NOTE: See Educational Income (above) regarding the treatment of VA educational income.

    2. Benefits paid to children of Vietnam veterans who are born with spina bifida pursuant to Public Law 104-204 are exempt as income in the month received and as a resource the following months.

    3. Benefits paid to children of women Vietnam veterans born with certain birth defects pursuant to Public Law 106-419 are exempt as income in the month received and as a resource the following months.

56. Vendor Payments - Money payments that are not payable directly to a household but are paid to a third party for a household expense are vendor payments and exempted as follows (See 6220 (9) for countable vendor payments.):

    1. A payment made in money on behalf of a household shall be considered a vendor payment whenever a person or organization outside of the household uses its own funds to make a direct payment to either the household's creditors or a person or organization providing a service to the household. For example, if a relative or friend, who is not a household member, pays the household's rent directly to the landlord, the payment is considered a vendor payment and is not counted as income to the household. Similarly, rent or mortgage payments, made to landlords or mortgages by HUD or by state or local housing authorities, are other examples of vendor payments and are also exempted.

    2. Public Assistance payments or other assistance payments financed by state or local funds which are not made directly to the household but paid to a third party on behalf of the household to pay a household expense shall be considered an exempt vendor payment and not counted as income to the household if such payments are for:

       1. Medical assistance;

       2. Child care assistance;

       3. Housing assistance payments made to a third party on behalf of a household residing in temporary housing, if the temporary housing provided for the household lacks facilities for the preparation and cooking of hot meals or the refrigerated storage of food for home consumption.
          
          Public Assistance or other assistance vendor payments financed by state or local funds which are made on behalf of migrants in the labor stream are exempt and not counted as income regardless of the purposes of the vendor payments.

    3. Payments in money that are not made to a third party, but are made directly to the household, are counted as income and are not excludable as vendor payments.

    4. Public Assistance payments or other assistance financed by state or local funds that are provided over and above the normal Public Assistance grant or other assistance payment and would not normally be provided in a money payment to the household shall be considered emergency or special assistance and exempted as income if provided directly to a third party for a household expense. This rule applies even if the household has the option of and receives a direct cash payment.

57. VISTA - AmeriCorps - Any payments received through the VISTA program are exempt as income in the month received.

58. Work Employment Programs Payments - The values of any services or monies received for support or transitional services paid directly to the client through work programs as defined in KEESM 3400 are exempt as income in the month received. In addition, irregular monies and/or lump sums received as incentive payments for participation in approved work activities shall be exempt as income for TANF, Child Care, LIEAP and Food Assistance purposes. Programs include but not limited to: Head Start/Early Head Start programs, supervised job placement programs, life skill classes, special disability and/or addiction treatment programs.

59. Work Opportunities Reward Kansans Payments (WORK) - Allocation payments made to individuals under an approved WORK Plan for Independence are considered a reimbursement and are exempt as income for all programs. All payments are also exempt as a resource in the month received.  
    
    Funds retained following the month of receipt are exempt as a resource if such funds are maintained in an allowable WORK checking or savings account per 8400. Funds moved to non-approved accounts lose exempt status and are countable.

60. Workforce Investment Opportunity Act (WIOA) - Income received from the Workforce Investment Opportunity Act of 1998 (WIOA) is exempt as income with the exception of on-the-job training program payments and paid work experience received by persons 19 or older. On-the-job payments and paid work experience received by persons under 19 are exempt as income.

61.  Youth Service Corps - Payments provided through Youth Service Corps are exempt in the month received.
    
    

13362 Income Guidelines - The gross income (before deductions) of all persons living at the residence address is considered in determining household income. The following eligibility limits represent 150% of the federal poverty level: