Work First 114 – INCOME AND BUDGETING

III. WHAT INCOME IS COUNTED

All income available to the family is counted in determining their eligibility for Work First Family Assistance, unless otherwise noted. However, income is counted in various ways. The first chart lists possible sources of income, whether they are counted, if they are counted, how they are counted, and possible sources of verification.

The second chart lists possible sources of educational assistance and whether the income is counted. Refer to XV below for additional information on educational assistance that is countable.

Since it is not possible to list all types of income in these charts, the caseworker may encounter income that is not listed here. If so, use prudent judgement and document the decision on how to count the income. The sources of verification listed are possible sources. There may be other acceptable means to verify the income, including the family’s statement in some instances. The type of income must be verified to determine if it is countable.

Source Of Income	Counted?	Income Type	Verifications
- A -
Active Corps Executives (ACE)	No
Adoption Assistance	No
Adult Developmental Activities Program (ADAP) Payments	No
Agent Orange Payments	No
Alaska Native Claims Settlement Act Payments	No
Alien's sponsor's income	No
Alimony/spousal support	Yes	Unearned	1. 230-EOM Report 2. Contribution Form (DSS-8176) 3. Contact the Clerk Of Court 4. Contact the spouse
AmeriCorps stipend (living allowance)	No
AmeriCorps child care assistance	No
Annuities	Yes	Unearned	1. Current check or stub 2. Contact the source
- B -
Baby-sitting	Yes	Earned	If self-employed, see Self-employment verification If wages, see Wages verification
Basic Allowance For Quarters (BAQ [military])	Yes	Earned	1. Leave and Earnings Statement (LES) 2. Wage stubs 3. Wage Verification Form, (DSS-8113)

Source Of Income	Counted?	Income Type	Verifications
Basic Allowance For Subsistence (BAS [military])	Yes	Earned	1. Leave and Earnings Statement (LES) 2. Wage stubs 3. Wage Verification Form, ( DSS-8113)
Bingo winnings	Yes	Unearned	1. Copy of check 2. Copy of award letter 3. Tax forms 4. Contact the source
Black Lung Benefits	Yes	Unearned	1. Current check 2. Award letter 3. Contact the Social Security District Office 4. Contact the U.S. Dept. Of Labor, Black Lung District Office
Boarders	Yes	Earned	1. Tax records 2. Business records 3. Bills/receipts 4. Records from banks, suppliers, or other knowledgeable sources
Bonus pay (regularly or paid once a year)	Yes	Earned	1. Wage check or stub 2. Wage Verification Form DSS-8113) 3. Contact the employer
Brown Lung Benefits	Yes	Unearned	1. Current check 2. Current award letter 3. Contact the Industrial Commission
- C -
Campaign contributions	No
Capital gains from business	Yes	Earned	1. Tax records 2. Business records 3. Bills/receipts 4. Records from banks, suppliers, or other knowledgeable sources
Career Sea Pay (military) Census Worker (Permanent) Census Worker (Temporary)	Yes Yes No	Earned Earned	1. Leave and Earnings Statement (LES) 2. Wage stubs 3. Wage Verification Form (DSS-8113) 1. Wage stub or check 2. Wage Verification Form 3. Contact the employer
Child support (all types) (For additional information on how to count child support, see XIII. below.)	Yes	Unearned	1. Contribution Form (DSS-8176) 2. Contact the Clerk Of Court 3. Contact the absent parent 4. ACTS Inquiry
Clothing Maintenance Allowance (CMA [military])	Yes	Earned	1. Leave and Earnings Statement (LES) 2. Wage stubs 3. Wage Verification Form (DSS-8113)
College Work Study Program administered under Title IV of the Higher Education Act or the Bureau of Indian Affairs	No
College Work Study Program not administered under Title IV of the Higher Education Act or the Bureau of Indian Affairs	Yes	Earned (Deduct expenses. See XV. below.)	1. Award letter 2. Contact the educational institution
Commissions	Yes	Earned	If self-employed, see Self-employment verification If wages, see Wages verification
Community Development Block Grant (CDBG) Funds	No
Contributions (For additional information on how to count contributions, see XIII.)	Yes	Unearned	1. Contribution Form (DSS-8176) from contributor 2. Contact the contributor
Cosmetology	Yes	Earned	If self-employed, see Self-employment verification If wages, see Wages verification
Court ordered restitution	Yes	Unearned	1. Current check or stub 2. Contact the Clerk Of Court 3. Legal documents 4. Contact attorney
CP&L (Project Share) Payments	No
Crisis Intervention Program (CIP) Payments	No
- D -
Disability payments that are provided through a private insurer and the individual is no longer employed	Yes	Unearned	1. Award letter 2. Check 3. Contact the insurance company
Disability payments that are totally employer funded and the individual remains employed	Yes	Earned	1. Wage stubs 2. Wage Verification Form (DSS-8113) 3. Contact the employer
Disaster Assistance	No
Dividends	Yes	Unearned	1. Current dividend check 2. Dividend statement 3. Contact the stockbroker or brokerage firm 4. Contact the company paying the dividends
- E -
Earned Income Tax Credit (federal and/or state)	No
Educational assistance (All Types) (See the chart on types of educational assistance that begins immediately after this chart.)	Depends On the Source	If counted, Unearned	1. Award letter 2. Campus based budget form 3. Student Income Verification Form 4. Contact the school 5. Contact the provider 6. Bills/receipts
Energy Assistance	No
Experimental Housing Allowance Program (EHAP) Payments	No
- F -
Family Subsistence Supplemental Allowance (FSSA [military])	Yes	Earned	1. Leave and Earnings Statement (LES) 2. Wage stubs 3. Wage Verification Form (DSS-8113)
Farm income (If self-employment, see VIII. Below for additional information on how to count self-employment income.)	Yes	Earned	1. Tax records 2. Business records 3. Bills/receipts 4. Records from banks, suppliers, or other knowledgeable sources
Federal Emergency Management Act (FEMA) Payments	No
Federal Employees Compensation Act (FECA) Benefits	Yes	Unearned	1. Copy of check or stub 2. Award letter 3. Tax forms
Food and clothing contributions	No
Food assistance	No
Food Stamps	No
Foster Care	No
Foster Care supplements over the State maximum payment	No
Foster-Grandparents	No
- G -
Gambling	Yes	Unearned	1. Copy of check 2. Copy of award letter 3. Tax forms 4. Contact the source
Gaming Proceeds, per capita proceeds to members of the Eastern Band of the Cherokee Nation semi-annually, usually in June and December (prorate over the six-month period between payments)	Yes (Pay-ments to minors go into a trust and are not counted.)	Unearned	1. Obtain a copy of the check. 2. Obtain a copy of the award letter. 3. Contact the source at: Eastern Band of Cherokee Indians P. O. Box 455 Cherokee, NC 28719 (704) 497-3705
General Assistance (GA) Payments	No
Gifts (monetary) that are for specific verifiable special occasions.	No
- H -
Houlton Band Of Macisett Indian Payments	No
Housing and Urban Development (HUD) Payments	No
Housing Improvement Grants	No
- I -
In-kind income or contributions	No
Income Tax Refund (Federal and State)	No

Source Of Income	Counted?		Income Type	Verifications
Independent Living Initiatives Of Title IV-E Of the Social Security Act (payments or services provided)	No
Indian Tribe Payments under P. L. 97.458 & 98.64	No
Inheritance	Yes		Unearned	1. Copy of the will 2. Contact the executor or administrator of the estate 3. Contact the Clerk Of Court 4. Contact the probate lawyer
Insurance settlements (except for lump sums)	Yes		Unearned	1. Settlement check 2. Contact the lawyer who handled the settlement 3. Contact the insurance company
Interest income (if paid to the family)	Yes		Unearned	1. Current account statement 2. Request For Financial Information Form (DSS-3431)
- J -
Job Corps (See WIA) Job Training Partnership Act (JTPA) See Workforce Investment Act, below.	No
Jump Pay (Military)	Yes		Earned	1. Leave and Earnings Statement (LES) 2. Wage stubs 3. Wage Verification Form (DSS-8113)
Jury Duty payments	Yes		Earned	1. Check or stub 2. Contact the Clerk Of Court
- L -
Leave Rations (military)	Yes		Earned	1. Leave and Earnings Statement (LES) 2. Wage stubs 3. Wage Verification Form (DSS-8113)
Loans (if repayment plan shows when the loan will be repaid)	No
Longevity pay	Yes		Earned	1. Check or stub 2. Contact the employer

Source Of Income	Counted?	Income Type	Verifications
Lottery winnings – if paid other than as a lump sum	Yes	Unearned	1. Check 2. Award letter 3. Tax forms 4. Contact the source
Low-Income Energy Assistance Program (LIEAP) Payments	No
Lump-sum payments (For additional information on how to count lump-sum payments, see XVII. below.)	Yes, for Apps., count in month of receipt	Unearned	1. Check Letter from provider 3. Signed statements 4. Bill of sale
- M -
Migrant income	Yes	Earned	Check stub or DSS-8113 2. Contact the Employment Service; Farm Labor Bureau; Rural Manpower Development; Farmer's Cooperative Service; Grower's Association; Migrant Service Organizations; county agent; or the individual growers and crew chiefs. 3. Use records that show: each day's income and hours worked, and signature of the grower or crew chief.
Military Allotments	Yes	Unearned	1. Current check or stub 2. Award letter 3. Contact commanding officers of military payment information centers (Attach a letter authorizing the release of the information.)
Military Allotments received as child support (For additional information on how to count military allotments received as child support, see XII. below.)	Yes	Unearned	1. Current check or stub 2. Award letter 3. Contact commanding officers of military payment information centers (Attach a letter authorizing the release of the information.)

Source Of Income	Counted?	Income Type	Verifications
Military pay	Yes	Earned	1. Leave and Earnings Statement (LES) 2. Wage stubs 3. Wage Verification Form (DSS-8113)
Monthly disbursements from a trust fund	Yes	Unearned	1. Contact the administrator/executor of the fund 2. Contact the lawyer
- N -
National School Lunch Act	No
Notary Public fees received	Yes	Earned	1. Tax records 2. Business records 3. Bills/receipts 4. Records from banks, suppliers, or other knowledgeable sources
Nutrition Program For the Elderly, Of the Older Americans Act Of 1965	No
- O -
On-the-Job-Training (OJT) Payments	Yes	Earned	1. Wage stub or check 2. Contact the source
- P -
Paid Work Experience (Generally through Welfare-to-Work)	Yes	Earned	Wage stub or check Contact the source
Passamaquoddy Indian Tribe Payments	No
Pay advances	Yes	Earned	1. Wage stub or check Wage Verification Form (DSS-8113) Contact the employer
Pell Grants	No		Award letter 2. Contact educational institution
Penobscot Nation Indian Payments	No
Pensions	Yes	Unearned	1. Pension check or stub 2. Award letter 3. Contact the organization providing the benefits 4. Tax records

Source Of Income	Counted?	Income Type	Verifications
Private unemployment benefits	Yes	Unearned	Check or stub 2. Award letter 3. Contact the company paying the benefits
Public Service Employment (PSE)	Yes	Earned	1. Wage stubs 2. Wage Verification Form (DSS-8113) 3. Contact the employer
- R -
Radiation Exposure Compensation Act Payments	No
Railroad Retirement	Yes	Unearned	1. Railroad Retirement check 2. Award letter 3. Contact a representative of the Railroad Retirement Board (See listing in RMDS.)
Reimbursements (for out-of-pocket expenses other than normal living expenses such as rent, mortgage, personal clothing, or food eaten at home.)	No
Relocation payments	No
Rental income (treat as self-employment income, see XIV. below)	Yes	Earned	1. Tax records 2. Business records 3. Bills/receipts 4. Records from banks, suppliers, or other knowledgeable sources
Representative payment (payment received by one individual on behalf of another individual) – Income is available for the family.	Yes	See specific income type	See specific type of income for verifications
Representative payment (payment received by one individual on behalf of another individual) – Income is not available for the family.	No
Restitution under the Civil Liberties Act Of 1988	No
Source Of Income	Counted?	Income Type	Verifications
Retirement benefits	Yes	Unearned	1. Retirement check 2 Award letter 3. Contact the company or business paying the benefits
Retired Senior Volunteer Program (RSVP)	No
Reverse mortgages	No
Roomers	Yes	Earned	1. Tax records Business records Bills/receipts 4. Records from banks, suppliers, or other knowledgeable sources
- S -
Sale of blood or plasma (Considered self-employment)	Yes	Earned	1. Tax records 2. Business records 3. Bills/receipts 4. Records from banks, suppliers, or other knowledgeable sources
Scholarships (For additional information on how to count scholarships, see XV. below.)	Yes	Unearned	1. Award letter 2. Contact the source
Sea Duty Pay (military)	Yes	Earned	1. Leave and Earnings Statement (LES) 2. Wage stubs 3. Completed Wage Verification Form (DSS-8113)
Seasonal employment	Yes	Earned	If self-employed, see Self-employment verification If wages, see Wages verification
Section 8 (HUD)	No
Self-employment (For additional information on counting self-employment, see XIV. below.)	Yes	Earned	1. Tax records 2. Business records 3. Bills/receipts 4. Records from banks, suppliers, or other knowledgeable sources

Source Of Income	Counted?	Income Type	Verifications
Selling recyclables	Yes	Earned	1. Tax records 2. Business records 3. Bills/receipts 4. Records from banks, suppliers, or other knowledgeable sources
Senior Companions Payment Program (Title II)	No
Senior Community Service Employment Program (SCSEP), Title V Separate Rations (military)	NO Yes	Earned	1. Leave and Earnings Statement (LES) 2. Wage stubs 3. Completed Wage Verification Form (DSS-8113)
Service Corps Of Retired Executives (SCORE) Payments	No
Severance pay	Yes	Unearned	1. Wage stub or check 2. Wage Verification Form (DSS-8113) 3. Contact the employer
Shared expenses	No
Shelter, utilities, and household furnishings made available at no cost	No
Sick pay	Yes	Earned	1. Wage stub or check 2. Wage Verification Form (DSS-8113) 3. Contact the employer
Social Security Benefits - Count the net social security benefit amount that appears on the BENDEX record. NOTE: When the payment is being reduced due to federal offset to repay a federal debt, offset information will not appear on BENDEX, but may appear on an individual’s award letter. Use the BENDEX record as verification of the correct net benefit amount. (If a Medicare premium is being deducted, add the premium amount to the net benefit amount. Count this total as unearned income.)	Yes	Unearned	1. BENDEX Inquiry 2. Third Party Query (TPQY) 3. BENDEX Data Exchange Report 4. Current Social Security check 5. Current award letter
Spousal support	Yes	Unearned	1. 230-EOM Report 2. Contribution Form (DSS-8176) 3. Contact the Clerk Of Court 4. Contact the spouse
Sponsor income State Earned Income Tax Credit (SEITC)	No No
SSI (Supplemental Security Income)	No
Stipends for students	Yes	Unearned	1. Check or stub 2. Award letter 3. Contact the educational institution
Surplus Commodities	No
- T -
Tax intercept payments (support) (For more information on child support, see XII. below.)	Yes	Unearned	1. ACTS Inquiry 2. Contribution Form (DSS-8176) 3. Contact the Clerk Of Court 4. Contact the spouse
Telamon Payments	Yes	Earned	1. Check or stub 2. Contact the Telamon Office 3. Wage Verification Form (DSS-8113)
Tips	Yes	Earned	1. Wage stubs 2. Wage Verification Form (DSS-8113) 3. Work First Family Assistance Report 4. Contact the employer 5. Client's records
Trade Readjustment Benefits	Yes	Unearned	1. Current check 2. Current award letter 3. Contact the local Employment Security Commission (ESC) Office
Travel reimbursement paid from an employer to an employee for travel expenses while working for the employer	No
- U -
Unemployment Insurance Benefits (UIB)	Yes	Unearned	1. ESC/UIB Inquiry 2. Current UIB check 3. Current award letter
Uniform Relocation Assistance and Real Property Acquisition Act Of 1970	No
- V -
Vacation pay	Yes	Earned	1. Wage check or stub 2. Completed Wage Verification Form (DSS-8113) 3. Contact the employer
Variable Housing Allowance (VHA) [military]	Yes	Earned	1. Leave and Earnings Statement (LES) 2. Wage stubs 3. Wage Verification Form (DSS-8113)
Vendor payments	No
Veteran's Administration Educational Assistance Program/ G.I. Bill (only what is used for educational purposes)	No
Veterans Administration (VA) Benefits	Yes	Unearned	1. Contact the VA Regional Office Claims Division at 1-800-827-1000 2. Current VA benefit check 3. Current award letter 4. Contact the local VA service office
Vocational Rehabilitation (VR) Incentive Payments (as long as a training program is in effect.	No
Volunteers In Service To America (VISTA)	No
- W -
Wages	Yes	Earned	1. Wage stubs 2. Wage Verification Form (DSS-8113) 3. Work First Family Assistance Report 4. Contact the employer
Witness pay	Yes	Unearned	1. Check or stub 2. Contact the Clerk Of Court
Workforce Investment Act (Formerly, JTPA) paid to an adult	Yes	Earned	1. Check, or stub, or (DSS 8113) 2. Contact WIA
Workforce Investment Act (WIA) (Formerly, JTPA) paid to a child,	No
Work First Employment Services payments made to someone other than the participant but made on the participant’s behalf (Example, childcare payments made to the participant's sister who is also receiving Work First Family Assistance – Count the childcare as income for the sister.)	Yes	Earned	If self-employed, see Self-employment verification If wages, see Wages verification
Work Release (For additional information on how to count Work Release, see XVI. below.)	Yes	Unearned	1. Check or stub 2. DC-190 from the Dept. of Correction 3. Work Release Check List 4. Contact the Dept. of Correction
Worker's Compensation provided through a private insurer or the individual is no longer employed	Yes	Unearned	1. Award letter 2. Current check 3. Contact the provider or insurance company
Worker's Compensation that is totally employer funded and the individual remains employed	Yes	Earned	1. Check or wage stub 2. Award letter 3. Contact the company where the person is employed or its insurance company 4. Contact the lawyer

Following is a list of potential sources of educational assistance and whether they are counted in Work First Family Assistance. Possible sources of verifications for the educational assistance listed below include award letters, contacts with the agency that administers the assistance, and contacts with the educational institution. See XVI. below for additional information regarding countable educational assistance.

Source Of Income			Counted?
- B -
Basic Educational Opportunity Grants (BEOG and PELL Grants)			No
Bilingual Materials, Methods, and Techniques Program			No
Bilingual Vocational Instructor Training Program			No
Bilingual Vocational Training Program			No
Blue Ribbon Vocational Education Program			No
Business and Education Standards Program			No
- C -
Carl D. Perkins Vocational and Applied Technology Education Act			No
College Assistance Migrant Program (CAMP) for students whose families are engaged in migrant and seasonal farm work			No
Community Education Employment Centers Program			No
Cooperative Demonstration Programs			No
- D -
Demonstration Centers for the Training of Dislocated Workers Program			No
Demonstration Projects for the Integration of Vocational and Academic Learning Program Education Lottery Scholarship (ELS) (Grant)			No No
- E -
Educational Programs for Federal Correctional Institutions			No
- F -
Federal Family Education Loan Program (formerly GSL)			No
- G -
Grants Administered by the Bureau Of Indian Affairs			No
- H -
High School Equivalency Program (HEP)			No
- I -
Income Contingent Loan (Eff. 7/1/87) (Title IV)			No
Indian Vocational Education Program			No
Internships For Gifted and Talented Vocational Education Students Program			No
- M -
Materials Development In Telecommunications Program			No
Model Programs Of Regional Training For Skilled Trades (Carl Perkins)			No
- N -
National Center or Centers For Research In Vocational Education			No
National Early Intervention Scholarship and Partnership Program			No
National Network For Curriculum Coordination In Vocational and Technical Education			No
National Tech-Prep Education Program			No
Native Hawaiian Vocational Education Program			No
- P -
PELL Grants			No
PLUS Loans For Parents			No
Presidential Access Scholarships (Super PELL Grants)			No
- R -
Source Of Income			Counted
Robert E. McNair Post-Baccalaureate Achievement			No
Robert T. Stafford Student Loans			No
- S -
Scholarships Offered by Civic Groups			Yes
Scholarships Offered by Institution			Yes
Sports Scholarships			Yes

State Student Incentive Grants	No
State Vocational and Applied Technology Education Program which contains the: State Program and State Leadership Activities; Program for Single Parents, Displaced Homemakers, and Single Pregnant Women; Sex Equity Program; Programs for Criminal Offenders; Secondary School Vocational Education Program;Post secondary and Adult Vocational Education Program; State Assistance for Vocational Education Support Programs by Community-Based Organizations; Consumer and Homemaking Education Program; Comprehensive Career Guidance and Counseling Program; and Business-Labor-Education Partnership for Training Program	No
State-Administered Tech-Prep Education Program	No
Student Support Services (Title IV)	No
Supplemental Educational Opportunity Grants (SEOG)	No
Supplemental Loans for Students (Title IV)	No
Supplementary State Grants for Facilities and Equipment and Other Program Improvements Activities (Carl Perkins)	No
- T -
Tribally Controlled Post Secondary Vocational Institutions Program	No
TRIO Grants (Go to organizations or institutions for students from disadvantaged backgrounds.)	No
- U -
Upward Bound (some stipends go to students)	No
- V -
Vocational Education Dropout Prevention Program	No
Vocational Education Leadership Development Awards Program	No
Vocational Education Lighthouse Schools Program	No
Vocational Education Research Program	No
Vocational Education Training and Study Grants Program	No
Vocational Educator Training Fellowships Program	No