Work First 114 – INCOME AND BUDGETING

Change # 07-2008

September 1, 2008

Along with meeting the eligibility criteria, a Work First Family must also be financially eligible to receive assistance. While some income is counted, other income is not. Furthermore, income may be counted differently depending on who receives the income.

To encourage work and make work pay, family members who work are allowed special work-related deductions. The family may continue to receive Work First Family Assistance for a period of time.

This section provides the information needed to determine if a family is financially eligible and, if so, how to determine the amount of the family’s Work First Family Assistance payment.

This section uses the following terms:

Unearned Income: Amount of benefits actually received by a budget unit member

If benefits are being reduced to repay a federal or state tax or other debt or to pay child support obligations, count the benefit amount prior to these deductions. Do not allow deductions for tax or child support payments withheld.

Gross Earned Income: Amount of earnings received through wages or self-employment before taxes, social security, and other deductions are made by the employer.

Net Earned Income: Income from earnings received through wages or self-employment minus any Work First Family Assistance work-related expenses.

I. WHOSE INCOME IS COUNTED

Count all income available to a family with certain exceptions, which are shown in the charts in III.below. Remember, a SSI recipient cannot receive Work First Family Assistance. Therefore, none of his income is ever counted in determining the Work First Family Assistance payment, regardless of his relationship to the family

Count the income of the following people if they live in the home.

Individual

Included

Excluded:

Does not meet Citizenship/Alienage

Excluded:

Any

Other reason

Parents (including

Stepparents,

Emancipated minor

parents)

Count the net earned and net unearned income (gross entered on automated budget, with appropriate deductions).

Count the earned and unearned income as if he were included in the case. If the individual receives SSI, do not count any of the income.

Count the parent’s net earned and net unearned income as if he were included in the case. If the parent receives SSI, do not count any of the parent’s income.

Children, including minor parents (not

Emancipated) and children subject to the family cap

Count the child’s net unearned income.

Do not count a child’s earnings.

Do not count any of the child’s income.

If excluded for failure to apply for a social security number, count the child’s net unearned income.

If excluded for any other, do not count the child’s income.

Spouse of a family unit child

Count the spouse’s net earned and net unearned income.

Do not count the spouse’s income.

Do not count the spouse’s income

Adult caretaker other than a parent or stepparent (or spouse of adult caretaker)

Will not be included.

Do not count any of their income.

Do not count any of their income.

NOTE: When there are two separate family units in the same household and there are individuals in either family unit who are financially responsible for someone in the other family unit, do not count income from one family unit to the other.

For questions or clarification on any of the policy contained in these manuals, please contact your local county office.

Individual	Included	Excluded: Does not meet Citizenship/Alienage	Excluded: Any Other reason
Parents (including Stepparents, Emancipated minor parents)	Count the net earned and net unearned income (gross entered on automated budget, with appropriate deductions).	Count the earned and unearned income as if he were included in the case. If the individual receives SSI, do not count any of the income.	Count the parent’s net earned and net unearned income as if he were included in the case. If the parent receives SSI, do not count any of the parent’s income.
Children, including minor parents (not Emancipated) and children subject to the family cap	Count the child’s net unearned income. Do not count a child’s earnings.	Do not count any of the child’s income.	If excluded for failure to apply for a social security number, count the child’s net unearned income. If excluded for any other, do not count the child’s income.
Spouse of a family unit child	Count the spouse’s net earned and net unearned income.	Do not count the spouse’s income.	Do not count the spouse’s income
Adult caretaker other than a parent or stepparent (or spouse of adult caretaker)	Will not be included.	Do not count any of their income.	Do not count any of their income.