1115.015.00 Income Exclusions

IM-#27 May 1, 2014, IM-#81 August 31, 2006

Excluded income is divided into four categories:

The income is entered into FAMIS on the Income (FMX0) and Income Amount (FMX3) screens. FAMIS knows by the income source code, and in combination with other fields for some of the income, whether the income is included or excluded income for the Food Stamp Program. Refer to the FAMIS Income Code Chart pdf logo for more information. Record a comment as outlined in the FAMIS Comments Quick Reference Chart pdf logo.

Verify irregular income. The remaining income exclusions do not ordinarily need to be verified unless FSD has inconsistent, unclear, or contradictory information regarding the income on the application, in the case, or with information received by FSD. Refer to specific policy regarding excluded income. The type (EI, UI, ED, or VW) and source codes are listed in parenthesis where applicable.

1115.015.05 Income in Kind

IM-#81 August 31, 2006

Exclude any gain or benefit not in the form of money payable directly to the EU, (such as income in benefits, including meals, clothing, public housing, produce from a garden, etc.) that is not received as the direct result of an individual's own labor or services (Type UI - Source IK).

1115.015.10 Vendor Payments

IM-#81 August 31, 2006

Exclude payments paid to a third party for an EU expense as follows:

Count monies legally obligated and otherwise payable to the EU diverted by the payment provider to a third party for an EU expense as diverted earned income or diverted unearned income. The income is coded as the source of income it is.

EXAMPLE: Mr. A's employer diverts part of his paycheck to Mr. A's landlord for his rent. This is coded as WA - wages.

1115.015.15 Compensation in Lieu of Wages

IM-#81 August 31, 2006

When an individual receives compensation in lieu of wages, such as working for rent, the value of the compensation is excluded. This occurs when the individual is working for the compensation instead of the employer paying wages to the individual (Type EI - Source CL).

1115.015.20 Irregular Income

IM-#30 April 4, 2007, IM-#81 August 31, 2006

Exclude earned income (EI) such as overtime, bonuses, commissions, or other wages that are irregular and are not expected to continue.

Exclude earned income (EI) or unearned income (UI) received on a casual or unpredictable basis that cannot be reasonably anticipated to be available during the certification period and is not in excess of $30 in a quarter.

1115.015.25 Loans

IM-#81 August 31, 2006

Exclude loans (Type UI - Source BF) from countable income as follows.

If a loan is not a bona-fide loan, enter the income source code as a non-bona fide loan (Type UI - Source NB). FAMIS includes this as unearned income.

1115.015.30 Reimbursements

IM-#81 August 31, 2006

Exclude reimbursements (Type UI - Source RM or RX), unless the reimbursement is for normal EU living expenses, such as rent or mortgage payment, personal clothing, or food eaten at home (Type UI - Source RL).

To be excluded, 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. Examples of excludable reimbursements not considered to be a gain or benefit to the EU are listed below.

1115.015.35 Representative Payee Payments

IM-#18 March 29, 2016

A representative payee is defined as a third party payee receiving income on behalf of a beneficiary. The most common representative payments are those made in grant programs, such as SSI, RSDI, and Temporary Assistance, to payees where beneficiaries are unable to manage the payment. A beneficiary is defined as a person for whom the income is to benefit. The income is coded as the type of income it is (SSI, RSDI, etc.).

The portion of the money that the representative payee uses for himself/herself is considered income to the representative payee's EU and not to the beneficiary's EU (Type UI - Source RH for the representative payee's EU). Do not show this part of the income to the beneficiary's EU. If the payee is a member of the beneficiary's EU, count the payment once to the EU.

A qualified organization (a community based nonprofit social service agency bonded or licensed in the State it serves) acting as a representative payee for an RSDI or SSI recipient may collect a fee for handling the recipient’s benefits. This fee is not considered income to the recipient and is excluded.

NOTE: If the intended beneficiaries of a single payment are not both EU members, exclude any identifiable portion of the payment intended and used for the care and maintenance of the non-EU member. If the non-EU member's portion cannot be readily identified, evenly prorate the payment among intended beneficiaries. Apply the exclusion to the non-EU member's pro rata share or the amount actually used for the non-EU member's care and maintenance, whichever is less.

1115.015.40 Earnings of Children

IM-#81 August 31, 2006

Exclude salary/wages (Type EI - Source WA) and income from self-employment (Type EI - Source SE) earned by a child under age 18 living with a natural, adoptive, or step-parent, or who is living under the parental control of an EU member other than a parent. The child must either be (1) attending elementary or secondary school, or (2) attending GED or home-school classes recognized by the state or local school district. Enter the income as usual, but enter a “Y” in the Under Parental Control field on the Income (FMX0) screen. FAMIS knows to exclude the income of individuals under age 18 who are under parental control of an EU member.

If the child's earnings or amount of work performed cannot be differentiated from that of other EU members, equally prorate total earnings among the working members. Exclude only the child's pro rata share.

This exclusion does not apply to the training allowances or unearned income received by the child. Nor does it apply if the student is an emancipated minor or living alone as he/she is no longer considered a child residing in the EU/under parental control.

Exclusion of this income does not change because of temporary interruption in school attendance, such as semester or summer vacations, provided the child's enrollment resumes following the break. Accept the EU's statement that the child intends to return after the break.

The month after the child turns 18 is the first month the earned income must be budgeted.

1115.015.45 Disaster Payments

IM-#81 August 31, 2006

Exclude disaster payments authorized by the Disaster Assistance Act of 1988 (Type EI - Source DP) and disaster payments not authorized by the Disaster Assistance Act of 1988 (Type UI - Source DR).

1115.015.50 Domestic Volunteer Service Act (DVSA) - not AmeriCorps or VISTA

IM-#81 August 31, 2006

Exclude income received by volunteers for services performed in programs stipulated in the Domestic Volunteer Services Act of 1973 (Type EI - Source DV). Programs include:

1115.015.55 Work Study/Educational Income

IM-#50 July 06, 2009 IM-#81 August 31, 2006

Exclude payments paid to students through the Work Study (Type EI - Source WK or W4) program. It is necessary to verify work study only to determine whether the work study is Title IV funded for student eligibility criteria.

Exclude educational income, including loans, grants, and scholarships. The income is coded as follows.

1115.015.60 Non-recurring Payments

IM-#81 August 31, 2006

Exclude money received in the form of non-recurring lump sum payments. This may include but is not limited to: insurance settlements (when received in a lump sum as distinguished from periodic amounts); sale of property (except property related to self-employment); cash prizes and awards; inheritances; retroactive lump sum Social Security and Railroad Retirement; retroactive pension payments; income tax refunds; IM retroactive payments for a prior month; IM deficiency payments; some military re-enlistment bonuses, and reimbursed funeral expenses. This is not shown as income on the Income (FMX0) screen.

1115.015.65 Relocation Assistance

IM-#81 August 31, 2006

Exclude payments received under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, whether they are for one or more years. (Type UI - Source RA)

The full amount of the rent payment made by the relocation EU is shown as a shelter cost.

1115.015.70 Indian or Alaskan Native Payments

IM-#81 August 31, 2006

Exclude the following.

1115.015.75 WIA Income

IM-#55 July 21, 2009, IM-#81 August 31, 2006

Exclude income received for any of the following WIA activities:

1115.015.80 Recoupment Payments

IM-#81 August 31, 2006

Exclude monies withheld from any income source to repay an overpayment. The repayment may be voluntary or involuntary. Income sources may include IM, Temporary Assistance, Social Security, SSI, earned income, veteran's benefits, etc. This income is not shown on the Income (FMX0) screen.

EXCEPTION: If Temporary Assistance is reduced due to failure to comply with program requirements, the reduction is not a recoupment. Budget the reduction in Temporary Assistance following policy in 1115.080.00 Prohibition In Increasing Food Stamp Benefits.

1115.015.85 Military Payments

IM-#81 August 31, 2006

Exclude the following.

Example: Sgt. G is deployed to Korea and has been providing $700.00 to his family. On 01/10/05, Sgt. G receives orders and is deployed to a designated combat zone on 02/02/05. He now provides $1,000.00 to his family. The $300.00 additional income is excluded because he started sending the additional income after his deployment to the designated combat zone. Enter $700.00 as income source code AA and $300.00 as source code MD. The $700.00 source code AA is included for food stamps, Child Care and Temporary Assistance. The $300.00 source code MD is excluded for food stamps, Child Care, and is included for Temporary Assistance.

1115.015.90 Other Excluded Income

IM-#29 March 30, 2018IM-96, October 26, 2015, IM-#33 June 24, 2014, IM-#27 May 1, 2014, IM-#81 August 31, 2006

The following income is also excluded. The type (EI, UI, ED, or VW) and source codes are listed in parenthesis where applicable.

EXCEPTION:  Individuals voluntary enrolled in METP are eligible for reimbursement of transportation and child care expenses. This allowance is NOT income for Food Stamp purposes and not entered into the system.

Always review the Food Stamp Budget Summary (FSBUDSUM or FM4A) screen prior to authorizing a case action. From the Budget Summary screen press F14=INCSUM to view the Income Summary Detail (INCSUMM or FM33) screen to ensure income you expect to be budgeted is included in the budget. If the income is incorrect, return to the appropriate screen and correct the inaccurate information.