Texas Health and Human Services Commission
Texas Works Handbook
Revision: 14-2
Effective: April 1, 2014

Part A — Section 1300

Income

A—1310  General Policy

Revision 13-2; Effective April 1, 2013

All Programs

Income is any type of payment that is of gain or benefit to a household. Income is either counted or exempted from the budgeting process. Earned income is related to employment and entitles a household to deductions not allowed for unearned income. Unearned income is income received without performing work-related activities. It includes benefits from other programs. To determine the date income can reasonably be anticipated, use factors specific to the source of income and the distance it has to travel through the mail, weekends and holidays.

Do not count Retirement, Survivors, and Disability Income (RSDI), Supplemental Security Income (SSI), Veterans Affairs (VA) benefits, or other such funds legally obligated to a beneficiary if a payee who is not a member of the household:

  • receives the funds; and
  • does not make the money available to the beneficiary.

In the beneficiary’s Eligibility Determination Group (EDG), count as unearned income the total amount of the legally obligated funds the payee makes available to the beneficiary in cash, by way of vendor payment or through items purchased for the beneficiary using the beneficiary's money (includes payments made by the payee to a third party on behalf of the of the beneficiary). Count any portion of the funds the payee keeps for the payee's own use as unearned income in the payee's EDG.

For Temporary Assistance for Needy Families (TANF) and Medical Programs, if the income is not made available to the beneficiary, the individual must follow the requirements for pursuing legally obligated income. See A-1311, Requirement to Pursue Income.

TANF and Medical Programs

Consider the income of:

  • any person who is included in the certified or budget group/EDG member including disqualified members;
  • any person living in the home who is not included in the certified or budget group but who is legally responsible for a member of the certified group; and
  • an alien's sponsor.

SNAP

Consider the income of:

  • any member of the Supplemental Nutrition Assistance Program (SNAP) household, including disqualified members; and
  • an alien's sponsor.

TP 40

After you determine that a pregnant woman is eligible, do not deny the EDG if the budget group income increases above the income limit. Adjust the budget to reflect the new income.

TP 45

Do not consider income when determining eligibility for TP 45.

Related Policy
Income Limits and Eligibility Tests, A-1341
Eligibility Criteria, B-471
Special Provisions for Elderly or Disabled Households, B-433
Categorically Eligible Households, B-470

A—1311  Requirement to Pursue Income

Revision 13-2; Effective April 1, 2013

TANF and Medical Programs

An individual must pursue and accept all income to which the individual is legally entitled. Inform the individual of the requirement and develop a plan with the individual to pursue the potential income. Allow reasonable time (at least three months) to pursue the income. Do not consider the income available during this time. Document the plan and the time allowed for pursuing the income.

In the comments section of Form TF0001, Notice of Case Action, inform individuals of their obligation to pursue potential income and include the time allowed for pursuing the income.

Exception: The individual does not have to pursue income if it would be unreasonable. Some situations considered unreasonable include:

  • the cost to the individual exceeds the potential income or causes financial hardship.
  • pursuing the income would endanger the individual's health or safety.
  • legal action is required, but a private attorney or Legal Services refuse to accept the case. The individual must make a reasonable effort to obtain legal assistance.

If the household refuses or fails to follow the agreed plan without good cause, deny the EDG.

TANF and TP 08

Set a special review if the anticipated change in income will occur before the next periodic redetermination.

Encourage individual independence from TANF!

A—1311.1 Requirement to Pursue SSI/RSDI

Revision 13-2; Effective April 1, 2013

TANF and Medical Programs

Provide and explain Form H1859, Social Security Administration Benefits for People with Disabilities Receiving TANF, to households claiming a disability or caring for a child with disabilities. Document that Form H1859 was provided and explained to the individual.

Advisors are not required to set a special review when referring individuals for Social Security benefits. At the next periodic redetermination, the household must provide verification that the individual with disabilities applied for SSI/RSDI benefits.

In the comments section of Form TF0001, Notice of Case Action, inform individuals of their obligation to pursue potential income and include the time allowed for pursuing income. For households claiming a disability or caring for a child with disabilities, also include the following appropriate statement:

  • English – "You must apply for assistance with the Social Security
    Administration and provide proof of the application at your next TANF interview."
  • Spanish – "Tiene que solicitar asistencia de la Administración del Seguro
    Social y presenter prueba de la solicitude en su próxima entrevista de TANF."

If the household fails to apply for SSI/RSDI without good cause, deny the EDG. If the household chooses to no longer claim the Choices exemption, update the exemption code and document the decision. The individual may not claim the Choices exemption if they reapply within 12 months from the denial date. If the individual claims the exemption before the 12 months, pend the EDG and allow the individual the opportunity to provide verification that they applied for SSI/RSDI benefits.

A—1311.1.1 SSI/RSDI Application Assistance

Revision 13-2; Effective April 1, 2013

TANF

State office has an automated process that identifies TANF recipients with Choices exemption for caring for a child with disabilities and unable to work due to mental or physical disability, and sends referrals to the contractor who administers the Social Security Outreach Application Program (SSOAP). SSOAP outreaches the TANF household, provides information and answers questions about the SSA process.

If an individual states that the household applied for SSI/RSDI, but does not have verification available, check the Wire Third-Party Query (WTPY)/State Online Query (SOLQ) system. If the WTPY/SOLQ system does not show the individual applied for benefits, request that the individual provide verification.

Do not deny the EDG if:

  • the individual is physically or mentally unable to complete the SSI/RSDI application process; and
  • SSOAP and SSA fail to, or are unable to, provide assistance needed to complete the SSI/RSDI application process.

A—1311.1.2 Social Security Administration (SSA) Definitions and Guidelines

Revision 13-2; Effective April 1, 2013

TANF and Medical Programs

The SSA administers two programs that provide benefits based on disability:

  • RSDI provides disability benefits to individuals, and to their dependents with disabilities under certain conditions.
  • SSI provides benefits to individuals with disabilities (including children under age 18) who have limited income and resources.

The Social Security Act and SSA's regulations provide a definition of disability:

  • For all individuals applying for RSDI and adults applying for SSI, the definition of disability is the same. The law defines disability as the inability to engage in substantial gainful activity because of physical or mental impairment(s) which may result in death, or which has lasted or is expected to last for a continuous period of not less than 12 months.
  • For children under age 18 applying for SSI, the law defines disability as a physical or mental impairment(s) which results in marked and severe functional limitations, and which may result in death, or which has lasted or is expected to last for a continuous period of not less than 12 months.

Refer the individual to SSI if one of the following conditions is met:

  • Psychological/Psychiatric Problems
    • Actual clinical diagnosis or medical documentation that indicates the individual is unable to work
    • Odd, inappropriate behavior
    • Long-time TANF individual who cannot get or keep a job for more than 30 days because of a mental impairment
  • Obesity combined with any other physical problems such as arthritis, high blood pressure, heart failure, respiratory disease or vascular disease
  • Low Intelligence
    • Former special education student
    • Inability to read or write, even though person has been to school
    • Basis test scores below 200
    • Failure to comprehend even the simplest directions
    • Down's Syndrome
  • Serious substance abuse when combined with other related health problems
  • Serious Health Problems
    • Multiple sclerosis, cancer, stroke, multiple surgeries for the same problem, multiple trauma and other situations
    • Chronic health problems
    • Newborns with low birth weight (1200 grams or less within the first few days after birth)
  • Age 50 or over with health problems, especially if combined with limited education and limited work history

Note: A claimant, including a child, applying for SSI based on disability or blindness may receive up to six months of payments before the final determination of disability or blindness if determined to be presumptively disabled or blind, and meeting all other eligibility requirements.

Related Policy
Definition of Disabled, B-432
Social Security's Criteria for Disability, B-432.1
Form H1859, Social Security Administration Benefits for People with Disabilities Receiving TANF

A—1320  Types of Income

Revision 13-2; Effective April 1, 2013

All Programs

There are differences between the TANF, Medical Program and SNAP in countable and exempt income. Count income that is not specifically listed in this section.

TANF

Notes:

  • When denying an EDG, explore eligibility for Medical Programs.
  • See A-221, Who is Included, and B-481, Advisor Action on Cases that Include an Other-Related Child, if the household includes an other-related child or a stepchild.

A—1321  Disability Benefits

Revision 13-2; Effective April 1, 2013

A—1321.1  Agent Orange Settlement Payments

Revision 13-2; Effective April 1, 2013

All Programs

Exempt Agent Orange Settlement Payments disbursed by AETNA Insurance Company and paid to

  • veterans with disabilities exposed to Agent Orange while in Vietnam who suffer from total disabilities caused by any disease, and
  • survivors of these deceased veterans.

These veterans receive yearly payments. Survivors of these deceased veterans receive a lump-sum settlement payment.

Note: Count Veteran's Administration payments as unearned income, including benefits paid to veterans with service-connected disabilities resulting from exposure to Agent Orange. See A-1324.19, Veterans Benefits.

Related Policy
Lump-Sum Payments, A-1331

A—1321.2  Disability Insurance Benefits

Revision 04-1; Effective January 1, 2004

All Programs

Count as unearned income.

A—1321.3  Radiation Exposure Compensation Act Payments

Revision 04-1; Effective January 1, 2004

All Programs

Exempt payments from the Radiation Exposure Compensation Act, Public Law 101-426.

The Act established a program to pay damages to individuals for injuries or deaths caused by exposure to radiation from nuclear testing and uranium mining. When the affected individual is deceased, the surviving spouse, children, parents, grandchildren, or grandparents receive the payments.

A—1321.4  Worker's Compensation

Revision 04-1; Effective January 1, 2004

All Programs

Count as unearned income the gross benefit less amounts

  • recouped for a prior worker's compensation overpayment; or
  • paid for attorney's fees. Note: The Texas Workers' Compensation Commission (TWCC) or a court sets the amount of the attorney's fee to be paid.

Do not allow a deduction from the gross benefit for court-ordered child support payments.

Exception: Exclude worker's compensation benefits paid to the individual for out-of-pocket medical expenses. Consider these payments as reimbursements.

A—1322  Education and Training

Revision 13-2; Effective April 1, 2013

A—1322.1  Educational Assistance

Revision 13-2; Effective April 1, 2013

All Programs

Exempt educational assistance, including educational loans, regardless of the source. Consider loans for education, including loans from relatives or other people, as educational assistance only if payment is deferred.

Educational assistance is

  • any financial aid for vocational or educational courses from
    • an organization (such as fraternal, alumni, etc.).
    • a government program or agency (such as U.S. Office of Education, Veteran's Administration, or Texas Department of Assistive and Rehabilitative Services).
  • provided to students of a

    Note: "Post-secondary" includes institutions of higher education and others not requiring a high school diploma (such as community colleges and vocational educational programs) authorized by the state to provide educational or training programs beyond secondary education.

The U.S. Office of Education under Title IV of the Higher Education Act administers most educational assistance programs. A few examples of the most common Title IV educational assistance grants include

  • Pell grants
  • Stafford Loan Program
  • Parent Loans for Students (PLUS Loans)
  • Supplemental Educational Opportunity Grants
  • College Work Study
  • Carl D. Perkins Loans (Title IV, Part E) (formerly National Direct Student Loans)

The National Community Services Act (NCSA) program also provides educational assistance. Individuals are awarded from $1,000 to $4,000 per year of completed services to apply toward past or future educational expenses. Do not count the educational award as it is always made payable directly to the financial institution or institution of higher learning.

The Department of Veteran Affairs administers education programs designed for veterans, reservists, members of the National Guard, and their widows and orphans. These include

  • Montgomery GI Bill (MGIB) Active Duty Educational Assistance Program
  • Vocational Rehabilitation
  • Post-Vietnam Era Veterans' Educational Assistance Program (VEAP)
  • Survivor's and Dependent's Educational Assistance (DEA)
  • MGIB - Selected Reserve Educational Assistance Program

Related Policy
Educational Assistance, A-1239

A—1322.2  Job Training

Revision 03-7; Effective October 1, 2003

A—1322.2.1  Workforce Investment Act of 1998 (WIA)

Revision 11-3; Effective July 1, 2011

All Programs

Exempt temporary employment of six months or less for disaster-related work, paid under the Workforce Investment Act and funded by the National Emergency Grant.

TANF and Medical Programs

Exempt all WIA payments.

SNAP

Exempt WIA payments except on-the-job training (OJT) payments funded under the Workforce Investment Act of 1998. Count OJT payments as earned income for adults.

Exempt OJT payments received by a child who is under

Related Policy
Government Disaster Payments, A-1324.3

A—1322.2.2  Other Job Training and Training Allowances

Revision 06-3; Effective July 1, 2006

All Programs

Exempt portions earmarked as reimbursements for training-related expenses. Count any excess as earned income.

A—1323  Employment and Self-Employment Income

Revision 13-2; Effective April 1, 2013

A—1323.1  Children's Earned Income

Revision 14-2; Effective April 1, 2014

TANF

Count a dependent child's earned income unless the child (as defined in A-221, Who is Included) is a:

  • full-time student, including a home-schooled child; or
  • part-time student employed less than 30 hours a week.

Exception: See A-1322.2.1, Workforce Investment Act of 1998 (WIA).

SNAP

Count a child's earned income unless the child:

  • is under age 18;
  • attends elementary, high school or general equivalency diploma classes, including home schooling; and
  • lives with natural or adoptive parents, stepparent or is under parental control of another household member.

Exception: See A-1322.2.1.

TANF and SNAP

Breaks in school attendance, such as summer vacation and holidays, do not change the student status of a child. Ensure that the child's enrollment will continue following the break.

When you cannot separate the child's earnings from that of other household members, divide the total earnings equally by the number of working members.

TP 40

Exempt the earnings of an 18-year-old in the budget group but not in the TP 40 certified group, if the 18-year-old is:

  • a full-time student, including a home-schooled child, or a part-time student employed less than 30 hours a week; and
  • considered a child. Use A-241.3, Household Composition Situations (Minor Parents, Independent Children, Etc.), to determine how to consider an 18-year-old.

Exempt the earnings of a child under age 18 who is in the budget group and the certified group, if:

  • the child is a full-time student, including a home-schooled child, or a part-time student employed less than 30 hours a week; and
  • the child's parents are included in the budget group.

TA 31, TP 08, TP 33, TP 34, TP 35, TP 43, TP 44, TP 47 and TP 48

Earnings of an 18-year-old:

Exempt the earnings of an 18-year-old in the budget group if the 18-year-old is:

  • a full-time student, including a home-schooled child, or a part-time student employed less than 30 hours a week; and
  • considered a child. Use A-241.3 to determine how to consider an 18-year-old.

Earnings of a child under age 18:

Follow TANF policy for exempting the earnings of children under age 18.

A—1323.2  Contractual Earnings

Revision 05-5; Effective October 1, 2005

All Programs

Contractual earnings are wages and salaries only. Self-employment income, unearned income, or income received on an hourly or piecework basis are not included. The two basic types of contractual earnings are:

  • Seasonal employment available only during certain months of the year and recurs each year. Examples: school-related employment, certain types of farm work, and summer or winter employment. Divide seasonal employment that is a household's annual means of support over 12 months. If the income supports the household for only a portion of the year and the household has income from other sources the rest of the year, average the earnings over the time they are intended to cover.
  • Contractual employment nonseasonal employment that is contracted for a specific time and does not recur. Divide earnings over the time covered by the contract.

A—1323.2.1  Monthly Budgeting of Contractual Earnings

Revision 13-2; Effective April 1, 2013

All Programs

If the income is not received as stipulated in the contract or if labor disputes interrupt income, do not apply the steps below. If the individual's employment situation changes:

  • recompute the income or adjust the benefits accordingly; and
  • document all the facts that caused the recomputation or adjustment.

To budget contractual earnings monthly:

  • Divide the total gross amount earned under the contract by the number of months the contract covers or by 12 months, whichever is applicable, and
  • Add this amount to any other income, and budget according to usual procedures.

A—1323.3  Military Pay and Allowances

Revision 13-2; Effective April 1, 2013

All Programs

Count military pay and allowances for housing, food, base pay and flight pay as earned income less pay withheld to fund education under the G.I. Bill.

A—1323.3.1  Family Subsistence Supplemental Allowance (FSSA)

Revision 04-7; Effective October 1, 2004

All Programs

The Family Subsistence Supplemental Allowance (FSSA) is a monthly payment made to certain low income service members and their families so they will not have to depend on SNAP to make ends meet. The service members' pay statements usually include the FSSA.

Count as earned income.

A—1323.3.2  Combat (Hazardous Duty) Payments

Revision 13-2; Effective April 1, 2013

TANF and Medical Programs

Count all of the combat payments, also known as hazardous duty payments, received by a legal parent who is a member of the U.S. military, absent solely because the individual has been deployed to a combat zone.

SNAP

Exclude from income any portion of military pay identified as combat pay including any portion of combat pay contributed to a household from military personnel deployed to a combat zone.

Determine if any funds contributed to the household by military personnel, such as through joint bank accounts or military allotments, are considered combat pay. Exempt any portion identified as combat pay from income. Follow the steps below to determine the amount of military income to exclude as combat pay.

Steps Action
1. Verify the monthly amount of combat pay received, as required in A-1370, Verification Requirements.
2.

Determine the amount of military pay the deployed individual was making available to the household before deployment to the combat zone.

If the deployed person was:

  • a household member before deployment, the amount would be the individual's net military pay.
  • not part of the household before deployment, then consider any amount made available from the individual's pay before deployment.
3. Determine the amount of military pay the deployed individual is making available to the household after deployment to the combat zone.
4. If the amount of contribution the household receives from the military personnel after deployment:
  • is equal to or less than the amount the household was receiving before deployment, then none of that contribution would be considered combat pay. Count the full amount of the contribution as unearned income.
  • exceeds the amount received before deployment, exclude the excess as combat pay (not to exceed the verified monthly amount of combat pay) and count the remainder (if any) as unearned income.

Related Policy
Who Is Included, A-241.1
Verification Requirements, A-1370
Glossary, Combat Pay and Combat Zone

A—1323.4  Self-Employment

Revision 12-4; Effective October 1, 2012

All Programs

Self-employment income is usually income from one's own business, trade, or profession rather than from an employer. However, some individuals may have an employer and receive a regular salary. If an employer does not withhold income taxes or FICA, even if required to do so by law, the person is considered self-employed.

Advisors must inform households in writing to keep self-employment records and receipts for verification purposes for future recertifications. Form TF0001, Notice of Case Action, contains the self-employment information.

Note: If a household has self-employment income and meets the streamlined reporting criteria, assign a six-month certification period.

A—1323.4.1  Types of Self-Employment Income

Revision 04-7; Effective October 1, 2004

All Programs

Types of self-employment include:

  • odd jobs, such as mowing lawns, babysitting, and cleaning houses;
  • owning a private business, such as a beauty salon or auto mechanic shop;
  • farm income; and
  • income from property.

A—1323.4.2  Property Income

Revision 04-7; Effective October 1, 2004

All Programs

Income from renting, leasing, or selling property on an installment plan is self-employment income. Property includes equipment, vehicles, and real property.

Count income from property as:

  • earned if the:
    • person spends an average of at least 20 hours per week in management or maintenance activities; or
    • income is from noncommercial boarding situations.
  • unearned if the person spends an average of less than 20 hours per week in management or maintenance activities.

For earned income, also allow the work-related expense. For unearned income, deduct only the expenses associated with producing the income.

If the individual sells property on an installment plan, count the payments as income. Exempt the balance of the note as an inaccessible resource.

A—1323.4.3  Noncommercial Roomer/Boarder Payments

Revision 13-4; Effective October 1, 2013

All Programs

Use this policy if a noncertified household member makes payments to a certified member under a formal or informal landlord/tenant relationship. Count payments made by boarders for room, meals, and other shelter expenses. Count payments made by roomers for room and other shelter expenses.

See A-1323.4.5, Allowable Costs of Producing Income, to determine the countable amount of noncommercial roomer/boarder payments. If there is not a formal or informal landlord/tenant relationship, follow policy in A-1326.1, Cash Gifts and Contributions.

TANF and Medical Programs

Do not give roomer/boarder status to:

  • anyone whose income can be applied to the certified group; or
  • a dependent child who is an ineligible alien.

SNAP

To be considered a boarder, a person residing with the household must pay reasonable compensation for meals and lodging. Reasonable compensation is:

  • the amount of the full allotment for the number of boarders if the boarders eat an average of more than two meals a day with the household; or
  • two-thirds of the full allotment for the number of boarders if the boarders eat an average of two meals a day or less with the household.

In determining "reasonable compensation," count only the amount paid for meals if you can separate it from lodging.

If the individual chooses:

  • to include a boarder as a household member:
    • count all of the boarder's income, resources and deductions; but
    • do not count the payment from the boarder as income since it is transferred between household members.
  • not to include a boarder as a household member:
    • do not count the boarder's income, resources or deductions in the household;
    • count the payment from the boarder as self-employment income for the household.

Related Policy
Nonmembers, A-232.1

A—1323.4.4  Determining the Amount of Self-Employment Income

Revision 13-2; Effective April 1, 2013

All Programs

If self-employment income is received monthly or more often (such as semi-monthly, bi-weekly, weekly or daily), use recent self-employment pay amounts to project income.

If the household had self-employment income for the past year that was received less often than monthly, use the income figures from the previous year's business records or tax forms if the records are anticipated to reflect current self-employment income and expenses.

Exceptions:

  • If the previous year's records do not accurately represent the household's current self-employment income because the household has experienced a substantial increase or decrease in business, anticipate income using more current information such as updated business ledgers or day books, or contact people who have similar businesses.
  • If the business is new and there is insufficient information to make a reasonable projection based on last year's records, anticipate earnings and expenses using only the recent business records along with the individual's statements about expected income and expenses and any applicable information from collateral sources.
  • If the income terminates before completing the EDG, budget actual income and expenses for the month the income terminates.
  • For Children’s Medicaid programs (TP 43, TP 44, TP 45, TP 47 and TP 48), the previous year’s business records or tax forms are acceptable, no matter the pay frequency.

Capital gain is the financial profit from a sale or transfer of capital assets (possessions such as products, raw materials, equipment or ownership of a business).

When calculating self-employment income, add capital gains the household expects to receive in the next 12 months and average the total over 12 months. Use this averaged amount for each certification period within the next 12 months unless a new average is computed because the person received a capital gain that was unanticipated or a different amount than anticipated.

Determining the Amount of Self-Employment Income at Application

All Programs

New applicants who have not received TANF, Medicaid or SNAP for a period of three consecutive months before the application month, or new household members who have not received benefits for three months before moving into the household, may not have been keeping accurate records of self-employment income and expenses. To obtain verifications needed to determine eligibility in this situation, follow policy in C-932, Advisor Responsibility for Verifying Information, to determine what types of verification are readily available to the household. Accept any business records that are available for use (even if this documentation is for a short period of time), in addition to the individual's statement and any proof that might be available from a collateral source as sufficient proof. Verify at least four consecutive recent pay amounts when determining the amount of self-employment income received monthly, semi-monthly, bi-weekly or weekly. Verify at least four consecutive weeks for self-employment income received daily. Exception: Do not require the individual to provide verification of self-employment income and expenses for more than two calendar months before the interview date for income received monthly or more often.

Accept the applicant's statement as proof if:

  • there is a reasonable explanation why documentary evidence or a collateral source is not available; and
  • the applicant's statement does not contradict other individual statements or other information received by the Health and Human Services Commission (HHSC).

Exception: If the business is new and there is insufficient information to make a reasonable projection, calculate the income based on anticipated earnings and expenses.

The advisor must inform the household in writing to keep self-employment records and receipts for verification purposes for future recertifications. Form TF0001, Notice of Case Action, contains the self-employment information.

Medical Programs

If the individual applies for three-months prior Medicaid, budget in each prior month the:

  • actual income and expenses for self-employment income received monthly or more often; or
  • projected monthly average amount for self-employment income received annually or seasonally.

Determining the Amount of Self-Employment Income at TANF and Medicaid Periodic Reviews and SNAP Recertifications

All Programs

Only verify information from the period of time since HHSC last requested verification of self-employment. Do not request verification that was previously verified (C-932). Verify at least four consecutive recent pay amounts when determining the amount of self-employment income received monthly, semi-monthly, bi-weekly or weekly. Verify at least four consecutive weeks for self-employment income received daily. Do not require the individual to provide verification of self-employment income and expenses for more than two calendar months before the interview date for income received monthly or more often.

If the advisor informed the household to maintain accurate self-employment records and receipts after certification, the household must provide them before being recertified unless:

  • the records and receipts are not available because of a reason beyond the household's control, such as being lost in a fire or flood, or
  • if due to a verified physical or mental disability the applicant is unable to complete the task. Note: This requirement is not applicable if the self-employed person has not received TANF, Medicaid or SNAP for three consecutive months before reapplying.

Related Policy
Computation Methods, A-1323.4.6

A—1323.4.5  Allowable Costs of Producing Income

Revision 14-2; Effective April 1, 2014

All Programs

Allowable costs of producing self-employment income include labor; sales tax; stock; raw materials; rent; insurance premiums; utilities; repairs that maintain income-producing property; supplies; fuel; linen service; property tax; interest from business loans on income-producing property; identifiable costs of seed and fertilizer; payments on the principal of loans for income-producing property; capital asset purchases, such as real property, equipment, machinery and other durable goods (items expected to last for at least 12 months); capital asset improvements; and allowable transportation costs. The individual may choose to use 56 cents per mile instead of keeping track of individual transportation expenses. Note: Do not allow travel to and from the place of business.

Do not deduct:

  • net loss that occurred in a previous period;
  • work-related expenses, such as federal, state and local income taxes, and retirement contributions;
  • depreciation;
  • costs not related to the self-employment; and
  • costs related to producing income gained from illegal activities, such as prostitution and the sale of illegal drugs.

Note: If the applicant conducts a self-employment business from the applicant's home, consider the cost of the home (rent, mortgage, utilities) as shelter costs, not business expenses, unless you can identify these costs as necessary for the business separately.

Noncommercial Roomer/Boarder Payments

All Programs

If the household receives roomer or boarder payments from the noncertified member, deduct the cost of doing business from each monthly payment. Count the remainder as self-employment income.

For roomers, the cost of doing business is actual costs. For boarders, the cost of doing business is:

  • the amount of the monthly SNAP allotment for the number of boarders (average of more than two meals a day), or
  • two-thirds of a full allotment for the number of boarders (average of two meals a day or less), or
  • the actual cost of providing room and meals if the actual cost exceeds the monthly SNAP allotment for the number of boarders.

Note: Identify and verify each expense when using actual costs.

Net Financial Loss

All Programs

Do not deduct a self-employment net financial loss from other types of household income. Exception: Deduct the loss from other household income if:

  • the loss results from a self-employment farming operation; and
  • the household received or anticipates receiving annual gross income of $1,000 or more from the farming operation (from Step I, Line A, Page 3, Form H1049, Client's Statement of Self-Employment Income).

TANF and TP 08

Deduct the farm loss amount from other non-farm self-employment income during the Budgetary (100%) Needs Test.

Deduct any remaining farm loss amount during the Recognizable Needs Test.

Medical Programs

Deduct the farm loss amount from other non-farm self-employment income during the federal poverty income level (FPIL) test.

Deduct any remaining farm loss amount after the work expense standard deduction and child/incapacitated care costs.

SNAP

Deduct the farm loss from other non-farm self-employment income before applying the gross income test.

Deduct any remaining farm loss from other earned or unearned income after applying the 20% earned income deduction.

A—1323.4.6  Computation Methods

Revision 13-2; Effective April 1, 2013

All Programs

There are four computation methods for self-employment income that may be used to calculate monthly income amounts for budgeting purposes:

  • annual,
  • monthly,
  • daily, and
  • anticipated.

Annual Computation Method

For this method, the individual must have been self-employed for at least the past full year.

The self-employment income projection period, usually 12 months, is the period of time the household expects the income to support the family. Establish a projection period for households that receive self-employment income that is intended to support the household for:

  • the year, but is received less frequently than monthly, such as farm income that may only be received a few times per year when crops or livestock are sold; or
  • a specific period in time, but is received less frequently than monthly.

Determine the projection period at application when the individual reports self-employment income received less often than monthly. Note: For Medicaid EDGs, if the individual is eligible for prior Medicaid, do not include the prior months in the 12 month projection period.

Use the following steps to determine the projection period for self-employment income:

  1. Determine if the self-employment is annual or seasonal, since that will determine the length of the projection period.
    • Annual – intended to support the household for at least the next full 12 months. The projection period is 12 months whether the income is received yearly or less often than monthly.
    • Seasonal – intended to support the household for less than 12 months since it is available only during certain months of the year. The projection period is the number of months the self-employment is intended to provide support.
  2. Determine the first month of the projection period. It is always the first month the household receives benefits, unless the individual will begin working in a future month. In this situation, use the month the self-employment begins as the first month of the projection period.

Once you establish the projection period, do not change it. The projection period remains the same until the:

  • individual no longer supports the household through self-employment;
  • 12-month or seasonal period ends; or
  • EDG is denied and the individual misses one full month's benefits before reapplying.

Exception: When there is a new source of self-employment income received less often than monthly, and the individual expects the income to support the household for the year or a specific period of time, establish a projection period for the months the individual states the income is intended to cover. Since this projection period covers income from a new source, at redetermination ensure that the income and circumstances still fit with the annual computation method criteria. Until the household has 12 months of income history, the projection period is conditional and may be changed as may the type of computation method used to calculate self-employment income.

To determine the monthly figure to use for new self-employment income when calculating a budget amount:

  • If there are two full representative months of self-employment income received less often than monthly, then use the monthly computation method.
  • If there are less than two full representative calendar months of self-employment income received less often than monthly, use the daily computation method.

On an active EDG, when an individual reports a new source of self-employment, the first month of the projection period is the change effective month.

Monthly Computation Method

Use the monthly computation method in two situations:

  1. If the frequency is known and consistent, use the appropriate conversion factor when calculating self-employment income and/or expenses. Do not use conversion factors when income is received on any other basis, such as daily or irregularly.

If the frequency is ... use conversion factor
weekly 4.33
bi-weekly 2.17
semi-monthly 2
  1. If the individual has at least two full representative calendar months of self-employment income, and the source or the frequency is unknown and inconsistent, total each month's self-employment income and deduct the total allowable expenses for each corresponding month.

Daily Computation Method

Use this method when:

  • there are less than two full representative calendar months of self-employment income; and
  • the source or frequency of the income is unknown or inconsistent (income received irregularly, not on a weekly, bi-weekly or semi-monthly basis).

Use the daily method until there are at least two representative calendar months of income. Once there are two full representative calendar months, use the monthly computation method.

Anticipated Self-Employment Method

Use the anticipated method to calculate self-employment income when:

  • there is no income history on which to base an average and the individual will receive the income on a known and consistent basis.
  • there is a change that will make the current or actual self-employment income non-representative.

Anticipated means the individual knows who will pay, when they will pay and how much will be paid. If the individual knows the source, but not the amount and/or frequency, use the Daily Computation Method in A-1323.4.7, Determining Net Self-Employment Income.

A—1323.4.7  Determining Net Self-Employment Income

Revision 04-7; Effective October 1, 2004

All Programs

Annual Computation Method

Use the following steps to determine net self-employment income when using the annual computation method:

  1. Determine the projection period.
  2. Determine the total gross self-employment income for the past year.
  3. Determine the total allowable expenses for the past year.
  4. Determine the yearly net income by subtracting the total allowable expenses from the total gross income.
  5. Determine the monthly net income by dividing the total yearly net income by the number of months of earnings history used.

If the self-employment income is annual and no substantial changes are expected, project the income for 12 months. If the self-employment income is seasonal and no substantial changes are expected, project the income for the seasonal period.

Monthly Computation Method

Use the following steps for the monthly computation method:

  1. Determine the total monthly gross self-employment income.
  2. Determine the total allowable expenses for each corresponding month.
  3. Subtract the total allowable expenses from the total gross self-employment income for the corresponding month.
  4. Look at the net monthly income and determine which months are representative of future earnings and project over the length of the certification period.

Note: If the frequency is known and consistent, use the appropriate conversion factor in Step 1 and Step 2.

Daily Computation Method

Use the following steps for the daily computation method:

  1. Determine the total gross income earned from the day the self-employment began through the interview date.
  2. Determine the number of days the income was received. The day self-employment begins is the day any part of the self-employment activity occurs (for example, buying supplies, working, earning income, etc.).
  3. Divide the total gross income by the number of days in the period the income was received.
  4. Multiply the daily income by 30 to get the monthly estimate of gross self-employment income.
  5. Determine the total verified self-employment expense paid from the day the self-employment began through the interview date.
  6. Determine the number of days the expense was to cover. Use the same number of days used to calculate income.
  7. Divide the total expense amount by the number of days in the period.
  8. Multiply the daily expense deduction by 30 to get the monthly estimate of the expense.
  9. Subtract monthly expenses from gross monthly income to determine net monthly self-employment.

Anticipated Self-Employment Method

Use the following steps for the anticipated self-employment method:

  1. Determine how often the individual will be paid and the amount.
  2. Multiply the pay amount by the appropriate frequency to determine the projected monthly amount:
    • Weekly: amount x 4.33
    • Bi-weekly: amount x 2.17
    • Semi-monthly: amount x 2
    Note: If the income amounts will fluctuate, determine a pay period average and multiply that amount by the appropriate conversion factor.
  3. Project over the length of the certification period.

Related Policy
How to Project Income, A-1355
Length of Certification, A-2324

A—1323.4.8  Changes in Annual or Seasonal Self-Employment Income

Revision 13-2; Effective April 1, 2013

All Programs

When an individual reports a change in self-employment income during the certification period, consider it part of the normal fluctuations of the business if the current budget already includes fluctuations as significant as the change the individual is reporting and do not revise the budget. If a reported change is not part of the normal fluctuations of the business, re-evaluate income and expenses and consider the change substantial if it results in a change to the average monthly net self-employment income of more than $25. If it results in a change of $25 or less, do not adjust benefits.

If a 12-month income projection period was previously established, do not change the period, unless it has expired or the individual reports no longer supporting the household with self-employment income. Even if the income or expense changes resulted in a different projected self-employment income, the projection period is the same.

If the income projection period has expired, establish a new one and require verifications, even if the individual indicates no changes in the business.

Note: When the individual reports a change in self-employment income that is not received annually or seasonally, follow policy in B-631, Actions on Changes.

A—1323.4.9  Rebudgeting Income and Expenses

Revision 04-7; Effective October 1, 2004

All Programs

If the individual reports a substantial change in annual or seasonal self-employment income, rebudget the income and expenses using the following method for actual income and expenses received.

Use actual income from the beginning of the projection period through the month before re-evaluation. Use the following steps to rebudget income in this situation.

  1. Determine the actual income for months from the beginning of the projection period through the month before re-evaluation.
  2. Project the new income for the rest of the projection period.
  3. Add the income from Step 1 and 2 to determine the annual or seasonal amount.
  4. Divide the total from Step 3 by 12 or the number of months in the seasonal period to get the new monthly average.
  5. Compare the new monthly amount to the previous average. If the change is substantial, budget the new amount over the remainder of the projection period.

A—1323.5  Wages, Salaries, Commissions and Tips

Revision 13-2; Effective April 1, 2013

All Programs

Count the actual gross amount of all wages, salaries, commissions, bonuses and tips as earned income before deductions such as flexible fringe benefits, cafeteria plans and employee retirement contributions are withheld from the amount.

Count wages held by the employer at the request of the employee, or garnished wages as income in the month the household would otherwise have been paid. If, however, an employer holds the employee's wages as a general practice, count this money as income in the month it is paid.

Count an advance in the month it is received. When paying back an advance, deduct the payback amount from the gross pay and budget the remainder as the countable gross amount.

Related Policy
How to Project Income, A-1355
Budgeting Options for SNAP Households, A-1355.1

TANF

Notes:

  • For EDGs denied because of earnings, determine eligibility for Medicaid according to A-800, Medicaid Eligibility.
  • See A-221, Who is Included, B-481, Advisor Action on Cases that Include an Other-Related Child, and B-482, Separating and Recombining Households, if the household includes an other-related child or a stepchild.

A—1323.5.1 Federal Tax Refunds and Earned Income Tax Credits (EIC)

Revision 13-3; Effective July 1, 2013

All Programs

Households with tax dependents and earnings below levels established by the Internal Revenue Service (IRS) are potentially eligible to receive EIC payments from the IRS.

EIC money is included in an individual's

  • paycheck (advance EIC payments) before the individual files an income tax return, or
  • IRS refund after the individual files an annual income tax return.

Exempt federal tax refunds and EIC payments/refunds as income.

Related Policy
Federal Tax Refunds and Earned Income Tax Credits (EIC), A-1232.2

A—1323.5.2  Flexible Fringe Benefits

Revision 13-2; Effective April 1, 2013

All Programs

Fringe benefit plans allow the employee to choose from benefit components such as insurance, extra vacation time, and payments to third parties for medical bills or child care. These are also called "cafeteria plans."

Under some plans, employers may:

  • withhold wages to pay for benefits selected by the employee, or
  • offer benefit credits in addition to wages, which the employee can use to purchase benefits.

Some plans may pay the remaining unused credit as part of the employee's wages.

If the employer ... the advisor must count ...
withholds the employee's wages to purchase benefits, the held wages as earnings in the pay period the employee would have normally received them.
provides credit in addition to wages, as earnings only the portion that is paid directly to the employee. If the employer pays the unused credit in cash, then follow the steps below to determine countable excess income.
  1. Determine the total amount of gross wages/salary.
  2. Add the benefit credit amount to the wages/salary from Step 1.
  3. Subtract the cost of fringe benefits up to the amount of the benefit credit from the amount in Step 2.
  4. The remaining income from Step 3 is the countable gross earned income for the EDG.

A—1323.5.3  Income from Tips

Revision 03-3; Effective April 1, 2003

All Programs

Household members who are employed in service-related occupations (beauticians, waiters, delivery staff, etc.) are likely to earn tips in addition to wages. Count tips as earned income.

Add tip income to wages before applying conversion factors.

Note: Do not consider tips as self-employment income unless related to a self-employment enterprise.

A—1323.5.4  Vacation Pay

Revision 03-3; Effective April 1, 2003

All Programs

If an individual receives vacation pay ... consider it ...
during or before termination of employment, earned income.
after termination of employment in one lump sum, a liquid resource in the month received.
after termination of employment in multiple checks, unearned income.

Related Policy
Lump-Sum Payments, A-1242; A-1331

A—1323.6  Temporary Census Income

Revision 10-2; Effective April 1, 2010

All Programs

Exempt wages.

A—1324  Government Payments

Revision 08-1; Effective January 1, 2008

All Programs

Count payments unless exempted in this section or by other policy in A-1300, Income.

A—1324.1  Adoption Assistance

Revision 07-1; Effective January 1, 2007

All Programs

Exempt.

Note: Do not include a person receiving adoption assistance in a TANF budget or a certified group.

Related Policy
Who Is Not Included, A-222, Item 8

A—1324.2  Crime Victim's Compensation Payments

Revision 13-2; Effective April 1, 2013

All Programs

Crime victim's compensation payments are from the funds authorized by state legislation to assist a person who

  • was a victim of a violent crime;
  • was the spouse, parent, sibling, or adult child of a victim who died as a result of a violent crime; or
  • is the guardian of a victim of a violent crime.

The Office of the Attorney General (OAG) distributes the payments monthly or in a lump sum. Exempt these payments.

Related Policy
Crime Victim's Compensation Payments, A-1232.1

A—1324.3  Government Disaster Payments

Revision 11-3; Effective July 1, 2011

All Programs

Exempt federal disaster payments and comparable disaster assistance provided by states, local governments and disaster assistance organizations if the household is subject to legal penalties when the funds are not used as intended, (including temporary employment of six months or less for disaster-related work, paid under the Workforce Investment Act and funded by the National Emergency Grant).

Examples

  • Payments by the Individual and Family Grant Program or Small Business Administration to rebuild a home or replace personal possessions damaged in a disaster.
  • Payments from the Federal Emergency Management Agency (FEMA) to assist with rent.

Related Policy
Government Disaster Payments, A-1232.4

A—1324.4  Government Housing Assistance

Revision 01-7; Effective October 1, 2001

All Programs

See A-1326.3 for energy or utility payments.

TANF and Medical Programs

Exempt the value of government housing or rental subsidies, whether cash, two-party check, in-kind, or vendor paid.

SNAP

Count

  • cash payments,
  • vendor payments paid from state or local government funds unless exempt as shown below,
  • vendor payments paid from state or local funds for transitional housing for the homeless.

Exempt

  • in-kind payments, and
  • federally funded vendor or two-party check payments.

A—1324.5  Transitional Living Allowance

Revision 13-2; Effective April 1, 2013

All Programs

Exempt transitional living allowance (TLA). The Department of Family and Protective Services (DFPS) distributes TLA to a foster child who

  • is under age 21;
  • has completed the preparation for adult living (PAL) classes; and
  • has left foster care or is transitioning out of foster care.

Payments

  • are received for a maximum of 12 months;
  • cannot exceed $500 a month;
  • cannot total more than $1,000; and
  • are intended for expenses other than ongoing room and board.

Related Policy
Transitional Living Allowance, A-1232.5

A—1324.6  In-Home and Family Support Program (IH/FSP) Payments

Revision 07-3; Effective July 1, 2007

All Programs

In-Home and Family Support Program (IH/FSP) payments are from funds authorized by state legislation to assist persons with disabilities so they can live in the community. These payments are distributed by the Department of Aging and Disability Services (DADS) to eligible individuals with

  • physical disabilities who may receive grants of up to $1200 annually with a maximum lifetime amount of $3600; or
  • mental retardation, other mental disabilities or eligible children newborn through age three with a developmental delay who may receive grants of up to $2500 annually.

These grants are available to purchase services or items related to the individual's disability, equipment or home modifications. State law requires that, to the extent possible, these funds be disbursed in a manner that does not interfere with the applicant's eligibility for TANF, SNAP or Medicaid.

TANF and Medical Programs

If a household member receives

  • one IH/FSP payment during the year, follow the policy in A-1244, Reimbursements.
  • more than one payment,
    • deduct any portion of the payment that is a reimbursement for expenses
      • not included in the standard of need, or
      • for medical needs that are not paid by Medicaid, and
    • follow budgeting policy in A-1356, Income Received Less Often than Monthly, and resource policy in A-1243, Payments Exempt as a Resource While Being Considered Income.

SNAP

If a household member receives

  • one IH/FSP payment during the year, follow the policy in A-1244, Reimbursements.
  • more than one payment,
    • allow a deduction for any portion of the payment that is a reimbursement for expenses other than normal living expenses.
    • follow budgeting policy in A-1356 and resource policy in A-1243.

Notes:

  • Consider medical expenses as other than normal living expenses.
  • Do not allow a medical deduction for any part of an expense that is reimbursed.

A—1324.7  National and Community Services Act (NCSA)

Revision 12-3; Effective July 1, 2012

All Programs

The NCSA established a corporation to administer paid volunteer service programs. The corporation provides funds, training and technical assistance to states and communities to develop and expand human, education, environmental and public safety services.

The corporation oversees programs created under the Domestic Volunteer Service Act (DVSA) of 1973 such as:

  • Volunteers in Service to America (VISTA),
  • Retired and Senior Volunteer Program (RSVP),
  • Foster Grandparents, and
  • Senior Companion Program.

The corporation also administers programs established in 1993 that include:

  • Americorp,
  • Learn and Serve, and
  • National Senior Service Corps (Senior Corps).

Programs established in 1973

Exempt payments, living allowances, and stipends.

Programs established in 1993

Exempt payments except OJT training payments. Count OJT payments for adults as earned income. Exempt a child's OJT payment if the child is under:

  • age 19; and
  • parental control of another household member.

Exception: Exempt OJT training payments received by Americorp volunteers.

SNAP

Exempt payments under Title V of Public Law 106-501, the Community Service Employment Program for Older Americans (formerly known as the Senior Community Service Employment Program).

A—1324.8  Native and Indian Claims

Revision 13-2; Effective April 1, 2013

All Programs

Exempt payments made to Native Americans under various public laws, including but not limited to:

  • Distributions from Native Corporations made under the Alaska Native Claims Settlement Act, ANCSA, (Public Law [PL] 92-203 and Section 15 of PL 100-241).
  • Funds distributed per capita or held in trust by the Indian Claims Commission for members of Indian tribes, as follows:
    • Grand River Band of Ottawa Indians (PL 94-540).
    • Income to certain tribal members from land held in trust by the United States government(PL 94-114, Section 6).
    • Income resulting from provisions of PL 92-254.
    • Red Lake Band of Chippewa (PL 98-123, Section 3) or Assiniboine Tribe of the Fort Belknap Indian Community, and the Assiniboine Tribe of the Fort Peck Indian Reservation (PL 98-124, Section 5).
  • Funds distributed by the Secretary of Interior to tribal members from:
    • tribal trust funds on a per capita basis (PL 98-64); or
    • judgment funds from claims against the United States and held in trust or distributed on a per capita basis (PL 93-134, as amended by 97-458).
  • Payments by the Indian Claims Commission to the
    • Passamaquoddy Tribe, the Penobscot Nation, and the Houlton Band of Maliseet Indians or any of their members (Maine Indian Claims Settlement Act of 1980, PL 96-420, Section 9(c).
    • Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of the Mescalero Reservation (PL 95-433).
    • Seneca Nation or its members (Seneca Nation Settlement Act of 1990, PL 101-503).
    • Blackfeet, Gros Ventre, and Assiniboine tribes of Montana (PL 97-408).
    • Saginaw Chippewa of Mississippi (PL 99-123, Section 6(b)(2).
  • Payments to the Turtle Mountain Band of Chippewa, Arizona (PL 97-403).
  • Payments to heirs of deceased Indians made under the Old Age Assistance Claims Settlement Act (PL 98-500).

Exception: Money given to Native Americans from gaming revenues (such as from casino profits, race tracks, lotteries, etc.) is not exempt under these laws. Count gaming revenues as unearned income.

A—1324.9  Nutrition Programs

Revision 03-1; Effective January 1, 2003

All Programs

Exempt

  • the value of food assistance under the Child Nutrition Act of 1966 and under the National School Lunch Act; and
  • benefits received under Title VII, Nutrition Program for the Elderly, of the Older American Act of 1965.

A—1324.10  One-Time Grandparent Payments

Revision 03-1; Effective January 1, 2003

All Programs

Exempt One-Time Grandparent Payments as income.

A—1324.11  One-Time Temporary Assistance for Needy Families (OTTANF)

Revision 03-1; Effective January 1, 2003

All Programs

Exempt OTTANF as income.

A—1324.12  Payments to Vietnam Veterans' Children

Revision 03-7; Effective October 1, 2003

A—1324.12.1  Payments to Vietnam Veterans' Children Born with Spina Bifida (Public Law 104-204)

Revision 03-7; Effective October 1, 2003

All Programs

These are VA payments made to Vietnam veterans' children who are born with spina bifida.

Exempt these payments.

A—1324.12.2  Payments to Children of Women Vietnam Veterans Born with Certain Birth Defects (Public Law 106-419)

Revision 03-7; Effective October 1, 2003

All Programs

These are VA payments made to the children of women Vietnam veterans who are born with a birth defect.

Exempt these payments.

Related Policy
Payments to Children of Women Vietnam Veterans Born with Certain Birth Defects (Public Law 106-419), A-1232.7.2

A—1324.13  Payments to Victims of Nazi Persecution

Revision 03-7; Effective October 1, 2003

All Programs

These are payments made to individuals because of their status as victims of Nazi persecution.

Exempt these payments.

A—1324.14  Payments to World War II Filipino Veterans and Spouses

Revision 10-4; Effective October 1, 2010

All Programs

Under the American Recovery and Reinvestment Act of 2009 (Division A, Title X, Section 1002), some World War II Filipino veterans who served in the military forces of the Government of Commonwealth of the Philippines, and their spouses, are authorized to receive one-time lump sum payments of up to $15,000.

Exempt these payments.

A—1324.15  Relocation Assistance

Revision 13-2; Effective April 1, 2013

All Programs

Exempt payments provided under:

  • Title II of the Uniform Relocation Assistance and Real Property Acquisitions Act of 1970.
  • Title I of Public Law 100-383. These payments are made to Aleuts or individuals of Japanese ancestry (or their heirs) who were relocated during World War II.
  • Public Law 93-531 to members of the Navajo or Hopi Tribes.

A—1324.16  Retirement, Survivors, and Disability Insurance (RSDI)

Revision 13-2; Effective April 1, 2013

All Programs

Count as unearned income the benefit amount including the deduction for the Medicare premium, less any amount that is being recouped for a prior RSDI overpayment.

Note: If the Department of Family and Protective Services (DFPS) is the payee and the child receives Foster Care Medicaid:

  • No Cash, count the RSDI income, or
  • With Cash, exempt the RSDI income.

See A-1326.15, Income Legally Obligated to Children in Department of Family and Protective Services (DFPS) Conservatorship, for further information on foster care types of assistance.

Note: RSDI benefits may be deposited into a debit account and made accessible to claimants via the Direct Express card debit account. See www.ssa.gov/pubs/10073.html.

TANF

Exempt RSDI or other income of SSI recipients.

Related Policy
Debit Accounts, A-1231.2

A—1324.17  Supplemental Security Income (SSI)

Revision 13-2; Effective April 1, 2013

TANF and Medical Programs

Exempt the income of an SSI recipient.

However, if the SSI recipient contributes to a member of the TANF unit, follow contributions policy in A-1326.1.1, Contributions from Noncertified Household Members.

Exception: Exempt all of the SSI benefits when the SSI recipient meets one of the following criteria:

  • the SSI recipient would otherwise be an eligible member of the TANF unit;
  • the SSI recipient would otherwise be someone whose income is "applied" to the TANF unit; or
  • a TANF-certified member is the SSI recipient's payee.

Note: Apply this policy to:

  • people whose SSI financial assistance is denied because of earnings and they continue to receive SSI Medicaid; and
  • children who receive SSI Medicaid (TP 19) and the individual chooses not to include the child in the TANF certified group.

SNAP

Count as unearned income. Deduct the amount that is being:

  • recouped for an overpayment; or
  • collected by a qualified organization providing representative payee services up to the lesser of 10% of the monthly benefit amount, or:
    • $50 for SSI benefits based on Alcoholism and/or Drug Abuse (SSI/DAA); or
    • $25 for non-SSI/DAA individuals.

Notes:

  • Verify with SSA that the organization is authorized to collect a fee for representative payee services. Verify with the qualified organization the amount collected for representative payee services.
  • If the DFPS is the payee and the child receives Foster Care Medicaid
    • No Cash, count the SSI income, or
    • With Cash, exempt the SSI income.

Section A-1326.15, Income Legally Obligated to Children in Department of Family and Protective Services (DFPS) Conservatorship, for further information on foster care types of assistance.

Note: SSI benefits may be deposited into a debit account and made accessible to claimants via the Direct Express card debit account. See www.ssa.gov/pubs/10073.html.

Related Policy
Plan for Achieving Self-Sufficiency (PASS), A-1326.8
Debit Accounts, A-1231.2

A—1324.18  Temporary Assistance for Needy Families (TANF)

Revision 13-2; Effective April 1, 2013

TANF and TP 08

Exempt.

SNAP and Medical Programs except TP 08

Count the TANF benefit amount (after recoupment) as unearned income.

Exempt retroactive or restored TANF or refugee cash assistance payments as income. Consider them lump-sum payments and count them as a resource.

Note: TANF benefits may be deposited into an Electronic Benefit Transfer (EBT) cash debit account and made accessible to recipients via an EBT card.

SNAP

Exception: Continue to count the recommended grant amount when the TANF grant is lowered for one or more of the following reasons:

  • a Personal Responsibility Agreement (PRA) penalty;
  • a recoupment for a TANF intentional program violation (IPV);
  • a disqualification for IPV or noncooperation with a TANF requirement (unless the individual is disqualified in SNAP for the same offense);
  • an active TANF EDG is denied because of:
    • the noncooperation disqualification of an individual;
    • failure to sign Form H1073, Personal Responsibility Agreement;
    • PRA noncooperation; or
    • noncooperation with an audit or investigation.

Do not increase SNAP benefits in an existing certification period when TANF benefits are forfeited because of a noncooperation penalty. In situations where the TANF is denied:

  • count the full TANF benefit until the next SNAP certification period begins; and
  • continue to count when a SNAP certification period is extended.

In situations where there is a break in SNAP benefits of less than a month, continue counting the TANF through the next certification period when the:

  • individual received or will receive SNAP in the month of the PRA noncooperation and either the first or second noncooperation month is also the first month of a new SNAP certification period; or
  • file date of the SNAP application and the TANF PRA noncooperation date are the same month and SNAP benefits do not prorate to less than $10 in the month of application.

Note: This policy does not apply to other types of TANF disqualifications or denials, or to denied TANF applications.

Examples:

During the SNAP certification period January – June, the date of noncooperation is Feb. 1. The first noncooperation month is February and the second noncooperation month is March. The TANF grant is denied in April. Continue to count the TANF grant in the SNAP budget through June.

At a SNAP redetermination when there is a certified TANF EDG, the household fails to comply with TANF PRA requirements and is denied effective with March benefits. The date of noncooperation is Jan. 1. The first noncooperation month is January and the second noncooperation month is February. The SNAP application file month is January. When the SNAP redetermination is untimely in January:

  • because the last benefit month was December, count the TANF in the ongoing SNAP budget since there is not at least a one month break in SNAP benefits.
  • and the last benefit month was November, do not count the TANF in the forfeit and ongoing months because there is a break in SNAP benefits of one month or more. The TANF grant received in January, the month of redetermination, must be counted.
  • because the last benefit month was December and the SNAP benefit prorates to zero for the application month, consider the application month a break in benefits of at least one month. Do not count the TANF grant in the forfeit or ongoing months.

When the SNAP redetermination is a new application or the individual was receiving SNAP in a different household, do not count the TANF in the forfeit or ongoing months. However, the TANF grant received in January, the month of application, must be counted.

A—1324.18.1  TANF Annual School Subsidy Payment

Revision 10-4; Effective October 1, 2010

All Programs

Exempt.

A—1324.19  Unemployment Compensation

Revision 11-1; Effective January 1, 2011

All Programs

Unemployment Insurance Benefits (UIB) are:

  • deposited into a debit account and accessible to claimants via the UIB debit card;
  • deposited directly into a personal checking or savings account; or
  • issued through a mailed paper check.

Count as unearned income the gross benefit less any amount being recouped for a UIB overpayment.

Exception: Count the gross amount if the household agreed to repay a SNAP overpayment through voluntary garnishment.

Related Policy
How to Project Income, A-1355
Debit Accounts, A-1231.2
Payments Exempt as a Resource While Being Considered Income, A-1243

A—1324.20  Veterans Benefits

Revision 14-1; Effective January 1, 2014

All Programs

The VA provides payments to veterans with disabilities and/or their spouses/dependents and to spouses/dependents of deceased veterans. VA benefits are not subject to federal or state income tax or child support garnishment.

Three basic VA benefit programs are described in this section:

  • Pension
  • Disability Compensation
  • Dependency and Indemnity Compensation (DIC)

VA Pension

VA pension payments are made to certain veterans with disabilities based on financial needs. Low income veterans who are either disabled or age 65 and older may be eligible for a VA pension if they have 90 days or more of active military service with at least one day during a period of war. Payments are made to bring the veteran's total income, including other retirement or Social Security income, to a level set by Congress. Recipients must re-qualify each year to continue to receive payments. There is a similar pension benefit available for surviving spouses and dependent minor children of such deceased veterans.

VA Disability Compensation

VA disability compensation is a payment made to a veteran with a service-related disability. Eligibility is not based on financial need. The amount of the payment varies with the percentage of the veteran's disability and the number of the veteran's dependents living in or out of the home. The payment can also be made to a spouse, child or parent of a veteran because of the service-related death of the veteran.

Dependency and Indemnity Compensation (DIC)

DIC is a monthly benefit paid to eligible survivors of active duty service members and survivors of those veterans whose deaths are determined by VA to be service-related. This payment is a flat monthly payment, regardless of other income. It is payable for the life of the spouse, provided the spouse does not remarry before age 57; however, should a remarriage end, DIC benefits can be reinstated. This payment is adjusted annually for cost of living increases and is non-taxable. VA adds a monthly transitional payment to the surviving spouse with minor children for the first two years of DIC entitlement or until the last child turns age 18, whichever occurs first. See www.vba.va.gov/bln/21/rates/comp03.htm#BM02 for current payment amounts.

Veterans with certain disabilities may be eligible for additional special monthly compensation such as:

  • Aid and Attendance and Housebound payments, which are an allowance to veterans and dependents who are in need of regular aid and attendance of another person, or a veteran who is permanently housebound; and
  • reimbursement for unusual medical expenses.

Count as unearned income the gross benefit less any amount recouped or suspended for VA overpayment, except as described below for reimbursement for medical and attendant care expenses.

Exempt these special compensation payments that are intended to cover medical and attendant care expenses. These payments are exempt as reimbursement as explained in A-1332, Reimbursements.

Apportioned VA payments are a direct payment of the dependent's portion of the VA benefit to a dependent spouse or child not living with the veteran. Apportioned VA payments are unearned income to the dependent spouse or child not living with the veteran.

Other Types of Veterans Benefits

  • Military retirement payment – A payment made to an individual who retired from active duty military service after at least 20 years of service. Military retirement is not a VA program, but is paid by the Defense Finance and Accounting Service in Cleveland (DFAS-CL). The gross payment is counted as unearned income.
  • Survivor Benefit Plan (SBP) – Active duty members are automatically enrolled in this program. Surviving spouses and/or children of service members who die while on active duty may be entitled to SBP payments made by DFAS-CL. SBP payments are equal to 55% of what a member's retirement pay would have been had the member been retired at 100% disability. An SBP payment is reduced by the amount of payments provided under the VA DIC program.

At retirement, retirees may choose to purchase the SBP. In this case, the SBP pays retired military members’ eligible survivors an inflation-adjusted monthly income. Basic SBP for a spouse pays a benefit equal to 55% of the retired individual's pay. Eligible children may also be SBP beneficiaries while they are dependents of the retired individual, either alone or added to spouse coverage. Any VA DIC paid to a spouse is subtracted from SBP payments, although VA DIC payments to or for children do not affect SBP payments. SBP premiums are refunded to the survivor if the monthly VA DIC amount is greater than the SBP monthly annuity.

The gross amount of any SBP payment is counted as unearned income.

  • VA educational assistance programs – Different programs provide education assistance, including vocational rehabilitation. Follow policy in A-1322.1, Educational Assistance.

A—1324.21  DFPS Relative Caregiver Reimbursement Program Payments

Revision 12-2; Effective April 1, 2012

All Programs

Exempt One-Time Integration Payments from income.

Exempt Flexible Support Payments from income.

Related Policy
DFPS Relative Caregiver Reimbursement Program Payments, A-1232.13

A—1324.22  Healthy Marriage Development Program Payments

Revision 10-4; Effective October 1, 2010

All Programs

Exempt a payment received for completing the Healthy Marriage Development Program. The advisor must document as required by policy in A-1380, Documentation Requirements.

A—1325  Income from Property

Revision 02-8; Effective October 1, 2002

A—1325.1  Dividends and Royalties

Revision 02-8; Effective October 1, 2002

All Programs

Count dividends as unearned income. Exception: Exempt dividends from insurance policies as income.

Count royalties as unearned income, less any amount deducted for production expenses and severance taxes.

A—1325.2  Payments for Mineral Rights

Revision 02-8; Effective October 1, 2002

Count as unearned income.

A—1326  Other

Revision 08-1; Effective January 1, 2008

A—1326.1  Cash Gifts and Contributions

Revision 08-1; Effective January 1, 2008

All Programs

Count cash gifts and contributions as unearned income unless they:

  • are made by a private, nonprofit organization on the basis of need; and
  • total $300 or less per household in a federal fiscal quarter. The federal fiscal quarters are January-March, April-June, July-September, and October-December.

If these contributions exceed $300 in a quarter, count the excess amount as income in the month received.

Exception: Budget contributions from noncertified household members, as explained in A-1326.1.1, Contributions from Noncertified Household Members.

Related Policy
Energy Assistance, A-1326.3
Lump-Sum Payments, A-1242; A-1331

A—1326.1.1  Contributions from Noncertified Household Members

Revision 13-2; Effective April 1, 2013

All Programs

If a noncertified person(s) lives in the home with a TANF/SNAP unit or Medicaid budget group and shares household expenses (no landlord/tenant relationship), exempt any payment the noncertified person makes to the unit for common household expenses (including food, shelter, utilities, and items for home maintenance). If a noncertified household member makes additional payments for use by a certified member, it is a contribution.

If a noncertified household member makes payments to a certified member under a formal or informal landlord/tenant relationship, determine countable income according to the roomer/boarder policy in A-1323.4.3.

A—1326.1.2  Gifts from Tax-Exempt Organizations

Revision 04-3; Effective April 1, 2004

All Programs

Exempt gifts from tax-exempt organizations if the gift is for a child with a life-threatening condition and the amount of the gift is

  • less than $2,000 annually, and
  • not converted to cash.

If the gift is converted into cash or exceeds $2,000 a year, count the conversion or the excess as unearned income in the month of receipt, and exempt as a resource in the months that follow.

A—1326.2  Child Support

Revision 13-2; Effective April 1, 2013

All Programs

Count as unearned income, payments obtained on behalf of a child. See A-1326.2.1, Counting Child Support, for when to count for Temporary Assistance for Needy Families. Consider payments as child support if:

  • a court ordered the support, or
  • the child's caretaker or the person making the payment states the purpose of the payment is to support the child.

Child support collections distributed through the Office of Attorney General (OAG) may be received through warrants, direct deposits or the Texas Debit Card. Refer to A-1326.2.1 for the various methods and availability.

Child support payments may be received by a person in Texas through another state’s Office of Attorney General. Several other states use debit accounts for the distribution of child support payments.

Note: If the Department of Family and Protective Services (DFPS) is the payee and the child receives Foster Care Medicaid:

See A-1326.15, Income Legally Obligated to Children in Department of Family and Protective Services (DFPS) Conservatorship, for further information on foster care types of assistance.

Consider:

  • gifts or donations as contributions, not child support. Gifts are items or money that only benefit the child for a specific purpose, such as a birthday present. This includes, but is not limited to, clothes, toys or personal items; or money to purchase clothes, toys or personal items.
  • ongoing child support income as income to the children even if someone else living in the home receives it.
  • child support arrears as unearned income to the caretaker.

If an absent parent is making child support payments but moves back into the home of the caretaker and child, do not count the child support. Count the earnings and/or other income as a regular household member.

If a caretaker receives current child support for a nonmember (or a member who is no longer in the home) but uses the money for personal or household needs, count it as unearned income. Do not count the amount actually used for or provided to the nonmember for whom it is intended to cover.

If a single payment covers two or more children (including at least one who is not an applicant/recipient) and the support order does not specify a portion for each child, prorate the payment among all of the children. When two or more children receive child support from the same father and one child receives Supplemental Security Income, the payment is always prorated.

A—1326.2.1  Counting Child Support

Revision 13-2; Effective April 1, 2013

All Programs

For child support payments issued via ... funds are ...
warrants mailed from Austin, Texas the day after the disbursement date listed on the Texas Child Support Enforcement System (TXCSES) inquiry system. When determining availability, consider the distance the payment has to travel through the mail.
direct deposit/electronic transfers available two business days after the disbursement date listed on the TXCSES Web inquiry system.
Texas debit cards available two business days after the disbursement date listed on the TXCSES Web inquiry system.

Related Policy
How to Project Income, A-1355
Debit Accounts, A-1231.2

TANF

Applicants are not required to remit any child support received before the certification date. At application and prior to certification, follow the procedures below to determine the countable child support to budget.

When determining ... count ...
eligibility all child support already received and/or expected to be received each month, less the $75 disregard. If the countable child support plus other countable income is less than the TANF recognizable needs, proceed to determining the benefit amount.

If ineligible, test the household for Medicaid eligibility.
benefits child support received from the beginning of the month through the date of certification, less the $75 disregard.

Exception: For One-Time TANF, issue the full grant.

Note: If the applicant refuses to remit the child support after signing Form H1073, Personal Responsibility Agreement, prior to certification, apply a child support penalty.

Instruct TANF recipients to remit all child support received after the certification date to the Office of Attorney General (OAG). See A-1124, TANF, for instructions on remitting child support payments to the state. Do not count child support payments remitted to the OAG as required.

Count child support received after certification if the:

  • EDG is transferred to a Medicaid program,
  • individual receives an excess payment from the OAG, or
  • legal parent keeps payments received directly from the absent parent instead of remitting them to the state.

Impose a sanction for noncooperation. Count child support payments less the $75 disregard deduction. Process a claim for any overissuance.

For EDGs denied because of child support, determine eligibility for Medicaid according to A-800, Medicaid Eligibility.

SNAP

Count child support as unearned income. If a TANF individual remits child support to the state, count only the portion the OAG sends to the individual.

Computer Action on Disregard Payment

The OAG sends the Health and Human Services Commission a monthly computer tape for all TANF individuals receiving OAG child support payments that month. Each month, TIERS:

  • updates the child support payment history file on SNAP data inquiry, and
  • rebudgets any associated SNAP EDG not correctly budgeted. This rebudgeting results in an automated TF0001, Notice of Case Action, if rebudgeting results in adverse action.

Medical Programs and TANF-State Program

Count full child support payments less the $75 disregard deduction.

A—1326.2.2  Lump-Sum Child Support Payments

Revision 13-2; Effective April 1, 2013

All Programs

Count lump-sum child support payments received, or anticipated to be received more often than once a year, as unearned income in the month received. Consider lump-sum child support payments received once a year or less frequently as a resource in the month received. See A-1242, Lump-Sum Payments.

Lump-sum payments on child support arrears are received from the following sources.

  • IRS intercept program This occurs when the IRS intercepts the absent parent's tax refund to pay child support arrears.
  • Excess Payment — When the OAG sends a second excess payment to the individual the advisor will receive Form H1719, Notice of Grant Second Excess Payment, with the date and the amount. See the glossary for more information.
  • OAG Adjustments The advisor will receive a PBS-OAGF1 Report, Clients Receiving A Lump Sum Adjustment from OAG-Possible Ineligibility. HHSC produces this report when the OAG makes adjustments to an EDG that results in a lump sum amount being distributed to the individual. Adjustments may occur when federal distribution changes are implemented, court orders are modified, or EDG errors are corrected.

Lump-sum payments on current child support are received from the following sources:

  • Advance pay Advance pay occurs when the absent parent is current on obligated amounts and voluntarily pays an amount in advance of the obligated monthly amount. Example: John Doe is obligated to pay $200 a month and is current on that amount. John loses his job and receives a severance payment of $2,000 and decides to pay $1,000 in advance to cover child support for the next five months. Count the payment to the individual as a resource in the month received.
  • Future pay Future pay occurs when the absent parent is current on obligated amounts and voluntarily and routinely pays an extra amount over the obligated amount. Example: Absent parent is obligated to pay $200 a month and is current on that amount. The absent parent pays $25 extra each month (or some months). The OAG releases the money as received. Count this payment as unearned income if you can anticipate that it will be received more often than once a year.

Related Policy
Calculating Household Income, A-1350
TXCSES Menu Screens, C-832.2

A—1326.2.3  Medical Support Payments

Revision 13-2; Effective April 1, 2013

All Programs

When a court order is entered, it designates the amount of child support and/or medical support a parent receives on behalf of the children. Medical support is in the form of

  • health insurance, ordered in addition to child support, or
  • a cash amount for the purpose of offsetting medical expenses.

If the individual does not receive Medicaid and is responsible for paying medical expenses, consider the payments a reimbursement and apply the policy for reimbursement in A-1332.

If the individual has an open child support EDG with the OAG for children receiving Medicaid, the OAG processes medical support payments through an interface with HHSC/TPR and the individual does not receive a direct payment. If an individual is not referred to the OAG for services and is receiving or begins receiving cash medical support payments, the individual is required to remit the payments to the TPR unit. Do not count cash medical support payments the individual receives and remits to TPR. Count as income any of the cash medical support payment from the absent parent that the individual continues to keep.

Related Policy
Remitting Cash Medical Support Payments to the TPR Unit, A-861.5
Remitting Child Support Payments to the State, A-1124
Reimbursements, A-1332

A—1326.3  Energy Assistance

Revision 06-4; Effective October 1, 2006

All Programs

Energy or utility payments and supplements are paid to or on behalf of the TANF, Medicaid, and SNAP households from various governmental and private sources. The assistance may be in the form of cash, vendor, in-kind, and two-party check payments.

Use the chart below to exempt or count energy/utility assistance as TANF, Medicaid, or SNAP income. Note: If an energy assistance payment is combined with other payments, exempt only the energy assistance portion from income (if applicable).

Source Type Payment TANF and Medical Programs SNAP
Federally-funded, state, or locally administered programs including CEAP, weatherization, Energy Crisis, and one-time payments for emergency repairs of a heating or cooling device (down payment and final payment)
  • Vendor
  • In-kind
  • Two-party check
  • Cash
Exempt Exempt
Energy assistance received through HUD, USDA's Rural Housing Service (RHS) or Farmer's Administration (FmHA)
  • Vendor
  • In-kind
  • Two-party check
  • Cash
Exempt Exempt
State or local government-funded utility supplement or energy assistance payments (not federally-funded)
  • Vendor
  • In-kind
  • Two-party check
Exempt Exempt
-
  • Cash
Exempt Count
Private non-profit organization
  • Vendor
  • In-kind
  • Two-party check
Exempt Exempt
-
  • Cash
Count per A-1326.1 Count per A-1326.1
State or federal regulated utility company, a municipal utility company, or a supplier of home heating oil or gas
  • Vendor
  • In-kind
  • Two-party check
Exempt Exempt
 
  • Cash
Exempt Count

A—1326.4  Foster Care and Permanency Care Assistance (PCA) Payments

Revision 12-1; Effective January 1, 2012

TANF/Medicaid

Exempt foster care or permanency care payments.

Note: Do not include a person receiving foster care or permanency care payments in a TANF/Medicaid budget or certified group.

SNAP

If a foster parent or caregiver chooses to exclude a foster/PCA child/adult from the certified group:

  • exempt foster care/PCA income for the foster/PCA child/adult excluded from the certified group; and
  • exempt all other income received by the excluded foster/PCA child/adult.

If a foster parent or caregiver chooses to include a foster/PCA child/adult in the certified group:

  • count the foster care/PCA income as unearned income for the foster/PCA child/adult;
  • count any other non-exempt income received by the foster/PCA child/adult; and
  • budget the foster care/PCA income under the foster/PCA child's/adult's name for whom the payment is intended.

Related Policy
Who Is Not Included, A-222, Item 8

A—1326.5  In-Kind Income

Revision 02-8; Effective October 1, 2002

All Programs

Exempt in-kind income.

A—1326.6  Interest

Revision 02-8; Effective October 1, 2002

All Programs

Count as unearned income.

A—1326.7  Loans (Noneducational)

Revision 13-2; Effective April 1, 2013

All Programs

Consider financial assistance a loan if

  • there is an understanding that the individual will repay the money, and
  • the individual can reasonably explain how the loan will be repaid.

Exempt these loans from income. Count contributions that are not considered loans as unearned income.

Note: See A-1234 for policy on treating loans as a resource.

A—1326.8  Plan for Achieving Self-Sufficiency (PASS)

Revision 13-2; Effective April 1, 2013

SNAP

Exempt any amount an SSI recipient deposits into a PASS account or uses toward completion of a PASS plan.

Note: If the PASS contribution is made from earned income, enter the PASS income in the Employer – Employee Screen – Amount Totals – PASS Income. TIERS will deduct the PASS contribution from the gross earnings.

A PASS can be, but is not limited to, money

  • deposited into a savings account to purchase a vehicle for employment transportation,
  • deposited into a savings account to start a new business, or
  • used toward an educational program.

The PASS plan must be approved by the Social Security Administration (SSA). The SSI recipient will receive a notice from SSA approving or disapproving the PASS plan. Advisors may use this notice as verification of the PASS plan.

Related Policy
Individual Development Accounts, A-1231.3

A—1326.9  Pensions

Revision 13-2; Effective April 1, 2013

All Programs

A pension is any benefit derived from former employment (such as retirement benefits or a disability pension). Count as unearned income.

A—1326.10  Trust Funds

Revision 02-8; Effective October 1, 2002

All Programs

Count as unearned income withdrawals or dividends that the household can receive from a trust fund that is exempt from resources.

Related Policy
Trust Funds, A-1237

A—1326.11  Resettlement-Reception and Placement (R&P)

Revision 12-1; Effective January 1, 2012

Medical Programs

Count R&P as income in the month received.

SNAP and TANF

Exempt R&P.

A—1326.12  Refugee Cash Assistance (RCA)

Revision 14-1; Effective January 1, 2014

SNAP and Medical Programs

Count RCA as income in the month received.

TANF

Individuals can receive RCA only if they are not eligible for TANF.

A—1326.13  Match Grant

Revision 14-1; Effective January 1, 2014

SNAP

Follow the policy in A-1326.1, Cash Gifts and Contributions.

Medical Programs

Count Match Grant as income in the month received.

TANF

Individuals can receive Match Grant only if they are not eligible for TANF.

A—1326.14  Spousal Diversion and Dependent Allowance

Revision 13-2; Effective April 1, 2013

All Programs

Count as unearned income the portion of income from a spouse or parent in a nursing facility that is diverted to the family members living in the community.

The spousal diversion and dependent allowance are determined by the Medicaid for Elderly and People with Disabilities worker processing the application for Nursing Facility coverage. When Nursing Facility coverage is approved and disposed, TIERS will add this income in the community family member's approved Texas Works (TW) EDGs upon running Eligibility. Advisors do not make Data Collection entries for this income.

A—1326.15  Income Legally Obligated to Children in Department of Family and Protective Services (DFPS) Conservatorship

Revision 13-2; Effective April 1, 2013

All Programs

DFPS has systems in place to become a payee for legally obligated income the child received prior to DFPS taking conservatorship. This income may include, but is not limited to, child support, Retirement, Survivors and Disability Insurance (RSDI) and Supplemental Security Income (SSI).

Foster care (FC) types of assistance (TOA) are identified in TIERS Inquiry as:

  • Foster Care – Federal Match – With Cash,
  • Foster Care – No Federal Match – With Cash,
  • Foster Care – No Federal Match – No Cash, and
  • Foster Care – Federal Match – No Cash.

Federal Match identifies Medicaid paid by matched funds from the federal government. No Federal Match identifies state paid Medicaid only without matching federal funds. With Cash types of assistance (with or without federal match) indicate that the foster parent receives FC financial assistance for an FC child in addition to FC Medicaid. No Cash indicates the foster parent does not receive an FC financial payment but DFPS provides FC Medicaid only.

When reviewing inquiry systems such as Wire Third-Party Query (WTPY)/State Online Query (SOLQ) and Office of Attorney General (OAG), and DFPS is identified as the payee for the legally obligated income:

  • Do not count the legally obligated income for an FC child who is receiving FC With Cash since DFPS keeps the legally obligated income.
  • Count legally obligated income for the FC child who receives FC No Cash since DFPS sends the legally obligated income to the foster parent.
  • Count the legally obligated income when a child is placed back in the home of the individual from whom the child was removed. DFPS remains the conservator of the child receiving FC No Cash and the legally obligated income is not forwarded. The individual must inform the income source they are now the payee. If DFPS has not already provided the issuing agency this verification, that agency must verify with DFPS before changing the payee.
  • FC and Adoption Assistance (AA) children placed in Texas from another state will receive a TOA No Cash from DFPS in Texas. However, the child may receive an FC or AA payment from the home state. When a child is receiving FC or AA in Texas and is from another state, contact the home state to verify any countable legally obligated income.

Examples:

  • Suzie Adams, a child, receives SSI. DFPS removes Suzie from the custody of her mother, Donna Adams. DFPS becomes the payee for Suzie's SSI.
  • Suzie is placed with a foster parent, Tina Green. Suzie receives FC – Federal Match – With Cash. Ms. Green chooses to include Suzie in her SNAP household. Suzie is added to Ms. Green's SNAP EDG. Since Suzie receives an FC payment, DFPS retains her SSI. Do not budget the FC payment and SSI in the SNAP EDG because the FC payment is exempt income and DFPS keeps the SSI income.
  • Months later, DFPS places Suzie with her great-aunt, Sharron Morgan. Suzie now receives FC – Federal Match – No Cash. Ms. Morgan chooses to include Suzie in her SNAP household. Suzie is removed from Ms. Green's EDG and is added to Ms. Morgan's EDG and SNAP EDG. DFPS remains the payee for Suzie's SSI but sends it to Ms. Morgan. The SSI must be counted in the SNAP budget.
  • Several months later, DFPS places Suzie back with her mother, Donna Adams; however, DFPS retains conservatorship. Suzie continues to receive FC – Federal Match – No Cash. DFPS informs the Social Security Administration (SSA) that Suzie now resides with her mother. Ms. Adams must inform SSA to have Suzie's SSI sent to her. The SSI must be counted in the SNAP budget.

Note: DFPS does not become the payee for children who receive adoption assistance.

A—1330  Types of Payments

Revision 04-3; Effective April 1, 2004

A—1331  Lump-Sum Payments

Revision 13-3; Effective July 1, 2013

All Programs

Exempt lump sums received once a year or less, unless specifically listed as income. Consider them as a resource in the month received and follow the policy in A-1242, Lump-Sum Payments.

Note: Consider retroactive or restored payments to be lump-sum payments and count as a resource. Separate any portion that is ongoing income from a lump-sum amount and count it as income.

Example: John receives a lump-sum payment in the amount of $4,950 from the SSA in the month of March. Effective that same month, John receives his first monthly RSDI payment of $950, which is included in the $4,950 lump-sum payment. Staff must budget the $950 RSDI payment beginning with the month of March as an ongoing payment and consider the $4,000 as a lump-sum payment.

Count a lump-sum payment as income in the month received if the individual gets it or expects to get it more often than once a year.

Exceptions: Count contributions, gifts, and prizes as unearned income in the month received, regardless of frequency of pay.

If a lump sum reimburses a household for burial, legal, medical bills or damaged/lost possessions, reduce the countable amount of the lump sum by the amount earmarked for these items.

Exempt federal tax refunds and EICs as income.

Related Policy
Cash Gifts and Contributions, A-1326.1
Federal Tax Refunds and Earned Income Tax Credits, A-1232.2

A—1332  Reimbursements

Revision 04-3; Effective April 1, 2004

TANF and Medical Programs

Exempt a reimbursement (not to exceed the individual's expense) provided specifically for a past or future expense

  • that is not included in HHSC's standard of need, or
  • for medical needs that are not paid by Medicaid.

If the reimbursement exceeds the individual's expenses, count any excess as unearned income. Do not consider a reimbursement to exceed the individual's expenses unless the individual or provider indicates the amount is excessive.

Note: Exempt a reimbursement for future expenses only if the individual plans to use it as intended.

SNAP

Exempt a reimbursement (not to exceed the individual's expense) provided specifically for a past or future expense other than a normal living expense.

If the reimbursement exceeds the individual's expenses, count any excess as unearned income. Do not consider a reimbursement to exceed the individual's expenses unless the individual or provider indicates the amount is excessive.

Note: Exempt a reimbursement for future expenses only if the individual plans to use it as intended.

A—1333  Third-Party Beneficiary

Revision 04-3; Effective April 1, 2004

All Programs

Exempt money an individual receives that is intended and used for maintenance of a nonmember.

If an individual receives a single payment for more than one beneficiary, exclude the amount actually used for the nonmember up to the nonmember's

    • identifiable portion, or
  • prorated portion (if the portion is not identifiable).

A—1334  Vendor Payments

Revision 13-2; Effective April 1, 2013

All Programs

Exempt payments that a person or organization outside the household makes directly to the individual's creditor or person providing the service.

Exception: Count as income money legally obligated to the household, but which the payer makes to a third party for a household expense.

Example: In a Medical Program or SNAP EDG, the absent parent is court-ordered to pay $400 per month. Instead, the absent parent pays $150 cash support and also pays $300 of the custodial parent's rent directly to the landlord for a total of $450. Count the $150 cash and $250 of the vendor paid rent as child support, since that portion is legally obligated to the individual. The $50 amount over the legally obligated child support of $400 is considered an exempt vendor payment.

Related Policy
Cash Gifts and Contributions, A-1326.1
Child Support, A-1326.2

SNAP

Follow the policy in A-1334.1 for state and local government vendor payments.

A—1334.1  Vendor Payments from State and Local Government Funds

Revision 02-8; Effective October 1, 2002

SNAP

Exempt all vendor payments made for a household with a migrant farm worker in the workstream that are paid with state or local government funds.

Count vendor payments paid to other people with state or local government funds unless the payment provides assistance for

  • medical expenses,
  • child care, or
  • expenses related to natural disasters (example: fires or floods).

Note: Vendor payments paid with federal funds (example: federally funded housing assistance) are exempt. Follow policy in A-1326.3 for energy assistance.

A—1340  Income Limits

Revision 08-1; Effective January 1, 2008

A—1341  Income Limits and Eligibility Tests

Revision 13-2; Effective April 1, 2013

TANF and TP 08

There are two eligibility tests for TANF and TP 08.

Budgetary Needs Test

The budgetary needs test is the first eligibility test for the household. Apply this test to all households who have not received TANF or TP 08 in the last four months (in Texas or another state).

If an unmet need of less than 50 cents remains, the household is ineligible.

Recognizable Needs Test

The recognizable needs test is the final eligibility test for the household. Apply this test to all applicant and certified households.

This test has two parts. Applicant households (those subject to the budgetary needs test) must pass both Part A and Part B. All other households must pass only Part B.

If an unmet need of one cent or more remains, the household is eligible.

Needs Tests Instructions

Include all countable earned and unearned income.

  • Total the gross earned and unearned income for each individual.
  • Add the amount of any applied income.
  • Subtract the child support disregard, if applicable.
  • Subtract the standard work-related expense (not to exceed the member's monthly earned income) for each member who qualifies for it and who has countable earnings.
  • Subtract each member's allowable costs for dependent care (up to the maximum).
  • Subtract any child support expense.
  • Compare the net income to the Budgetary Needs amount in C-111, Income Limits. If the net income is 50 cents or more, the household passes the Budgetary Needs test.

Note: If there is a diversion amount and someone other than the individual with diversions has countable income (or two members with joint diversions both have countable income), compute each member's income/earned income deductions separately until after subtracting the actual amount allowed to be diverted from each individual's income. Then add their total net incomes.

When two members have joint diversions, any amount of the diversion that exceeds one member's income can then be diverted from the other member's income.

  • Subtract 1/3 of the net income for applicants with earned income who have not been active TANF in the last four months.
  • Subtract 90% of the remaining earnings (up to a cap of $1,400). Allow this deduction for each employed household member who is eligible for it. The individual can receive this deduction for four months in a 12-month period. The four months do not have to be consecutive. Note: Do not count a month in which a full-family sanction is imposed as one of the 90% earned income deduction (EID) months.

Notes:

  • If there is a diversion amount, and someone other than the individual with diversions has countable income (or two members with joint diversions both have countable income, compute each member's income/earned income deductions separately until after subtracting the actual amount allowed to be diverted from each individual's income. Then total their adjusted gross incomes.

    When two members have joint diversions, any amount of the diversion that exceeds one member's income can then be diverted from the other member's income.
  • For each household member with earnings, the deductions cannot exceed the individual's total income. This also applies when there is more than one household member with earnings and/or diverted income.

    Compare the adjusted income to the Recognizable Needs amount in C-111, Income Limits. If the adjusted income is $.01 or more, the household passes the Recognizable Needs test.

    Subtract the adjusted income from the Maximum Grant amount in C-111 to determine the benefit amount.

Related Policy
Child Support Deductions, A-1421
$75 Disregard Deduction, A-1422
Dependent Care Expense, A-1423
Diversions, Alimony, and Payments to Dependents Outside the Home, A-1424
Work-Related Expense ($120 and 20%), A-1425.1
1/3 Disregard for Applicants, A-1425.2
90% Earned Income Deduction, A-1425.3
Income Limits, C-111

SNAP

There are two eligibility tests for SNAP.

Gross Income Test

Gross income is the total countable income. Apply this test to all households except those:

  • with a member who is elderly or disabled as specified in B-430, Elderly or Disabled Households, or
  • that are categorically eligible.

To be considered categorically eligible, all household members must be approved for TANF or SSI, or a combination of TANF and SSI, or the household must meet resource criteria and have gross income below or equal to 165% FPIL for its size.

A household subject to the gross income test is ineligible if unrounded gross income exceeds the limit by one cent or more.

Note: For households with a deductible farm loss, subtract the loss before applying the gross income test.

Net Income Test

Net income is the gross income minus allowable deductions. Apply this test to all households, except categorically eligible households.

Note: Apply the net test to a household with a member who is elderly or disabled if the household’s gross income exceeds 165% FPIL and the household does not meet categorically eligible requirements.

If a household's rounded income exceeds the net income limits, the household is ineligible. Round up for 50 cents or more; round down for 49 cents or less. Deny the EDG if net income results in zero allotment for the initial and ongoing months.

TIERS will assign the appropriate income test at Eligibility Summary after running EDBC.

Related Policy
Maximum Income Limits, C-121
Benefits, A-2322

Medical Programs

There are several eligibility tests for Medical Programs. They include:

  • TP 47: TANF recognizable needs test*
  • TP 56 and TP 32: medically needy income limit (MNIL) for children and pregnant women*
  • TP 08 and TA 31: TANF recognizable needs test
  • TP 44, TP 30: at or below 100% FPIL*
  • TP 48, TP 30: at or below 133% FPIL*
  • TP 40, TP 42, TP 43, TP 33, TP 34, TP 35 and TP 36: at or below 185% FPIL for children under age 1, and pregnant women*

    *Include the needs of the unborn child if:
    • a pregnant woman is included in the certified group; or
    • a woman in the budget group receives Medicaid because of her pregnancy.
    Include the needs of additional unborn children when multiple births are verified.

Related Policy
Income Limits, C-131
Guidelines for Providing Retroactive Coverage for Children and Medical Programs, C-1114
Who is Included, A-241.1

A—1341.1  Grant Amount

Revision 05-4; Effective August 1, 2005

TANF

The TANF grant amount is the amount of the monthly benefit. The TANF grant is approximately 17% FPIL. The federal government periodically adjusts the FPIL.

After the household passes the Recognizable Needs test, calculate the recommended grant amount. Subtract the household's adjusted gross income (rounded down to the nearest dollar) from the maximum grant amount allowed for the household's size and composition. (See C-111, Income Limits.)

The minimum grant amount is $10. The household is eligible to receive the minimum grant if the recommended grant amount is less than $10.

Issue benefits of less than $10 only for

  • supplemental payments; and
  • payments made after processing recoupment.

A—1350  Calculating Household Income

Revision 11-1; Effective January 1, 2011

All Programs

Compute a household's income to determine eligibility and benefit amount. To compute income, use:

  • actual income (income that was already received), or
  • projected income amounts (not received but expected).

Notes:

  • For the current month, use both actual amounts and projected future amounts to determine eligibility and benefits.
  • For households paid on a monthly or semi-monthly basis, count income for the month it is intended if the household receives:
    • the income in a different month because of a change in the mailing cycle or pay date; or
    • an additional or missed payment because of weekends or holidays.

Exception: When using TWC wage record to calculate income, see A-1355.2, How to Use Texas Workforce Commission (TWC) Quarterly Wage Information to Budget Earned Income.

TANF

If a child lives with a married relative (not a parent) who wants to be the caretaker, determine eligibility and benefits using

  • normal budgeting for the applicant's income, and
  • stepparent budgeting for the income of the applicant's spouse.

Medical Programs

If a child lives with a married relative (not a parent) who wants Medicaid:

  • include the relative and their spouse in the child's budget group, and
  • use normal budgeting for the income of the relative and their spouse.

A—1351  Irregular and Unpredictable Income

Revision 07-3; Effective July 1, 2007

SNAP

Exempt income that is irregular and unpredictable if both of the following conditions apply:

  • The anticipated income will be less than or equal to $30 per household in a federal fiscal quarter, and
  • The individual receives the income too infrequently or too irregularly to reasonably anticipate it. "Reasonably anticipate" means the individual knows
    • who the income will come from,
    • in what month it will be received, and
    • how much it will be.

A—1352  Terminated Income

Revision 04-3; Effective April 1, 2004

All Programs

Count terminated income in the month received. Use actual income and do not use conversion factors if terminated income is less than a full month's income.

Income is terminated if it will not be received in the next usual payment cycle.

Income is not terminated if:

  • someone changes jobs while working for the same employer;
  • an employee of a temporary agency is temporarily not assigned;
  • a self-employed person changes contracts or has different customers without having a break in normal income cycle; or
  • someone receives regular contributions, but the contributions are from different sources.

A—1353  How to Convert Income to Monthly Amounts

Revision 11-1; Effective January 1, 2011

All Programs

If actual or projected income is not received monthly, convert it to monthly amounts. Use one of the following methods:

  • Divide yearly income by 12.
  • Multiply weekly income by 4.33.
  • Add amounts received twice a month (semi-monthly).
  • Multiply amounts received every other week by 2.17.

Note: For converting TWC wages, see A-1355.2, How to Use Texas Workforce Commission (TWC) Quarterly Wage Information to Budget Earned Income.

A—1353.1  Converting New Semi-Monthly Income

Revision 13-2; Effective April 1, 2013

All Programs

Follow the procedures below if an individual has a new source of semi-monthly income and has not received enough checks to reliably project the income:

  1. Determine the estimated number of hours the individual will work per week.
  2. Estimate weekly gross income by multiplying the weekly estimated hours by the hourly wage.
  3. Determine the monthly projected gross income by multiplying the estimated weekly gross income by 4.33.
  4. To determine the semi-monthly income amount to enter on the income screen, divide monthly gross income by two.

A—1354  How to Budget Actual Income

Revision 11-1; Effective January 1, 2011

All Programs

Actual income is income that has already been received. To budget actual income:

  • Determine the actual income received in a past month, and
  • Convert the averaged amount to a monthly amount. See A-1353, How to Convert Income to Monthly Amounts, for instructions on how to convert income to a monthly amount.

Do not convert actual income if

  • you are determining eligibility for three months prior Medicaid, or
  • the income received from a new or terminated source is less than a full month's income.

Note: For budgeting TWC wages, see A-1355.2, How to Use Texas Workforce Commission (TWC) Quarterly Wage Information to Budget Earned Income.

A—1355  How to Project Income

Revision 13-2; Effective April 1, 2013

All Programs

Projected income is income that the individual has not received but expects to receive. To project income:

  1. Evaluate the household's income and circumstances with the individual.
  2. Budget income in the month it is anticipated to be received. Budget:
    • actual income received as of the interview date (or the date the information was requested), and
    • income that can reasonably be anticipated for pay periods after the interview or information request date. Reasonably anticipated means the individual knows:
      • the source of the income,
      • in what month the income will be received, and
      • amount of income that will be received.
  3. When income is not received monthly and a full month's income is anticipated, convert it to a monthly amount using conversion factors.
  4. When an additional payment is received outside the regular payment cycle, convert the regular payments and add the additional payment to the converted amount.

Note: To determine the date income can reasonably be anticipated, use factors specific to the source of income, distance it has to travel through the mail, electronic transfers, weekends and holidays.

For claimants receiving unemployment insurance benefits, determine the availability of funds in the account by adding one business day to the payment date listed on the Texas Workforce Commission Inquiry Benefit Payment screen, excluding weekends and holidays.

For child support payments disbursed through the Texas Debit Card, follow policy in A-1326.2.1, Counting Child Support.

Fluctuating Income

If income is ongoing, but the amounts fluctuate, it is best to anticipate by averaging income from past pay periods. When using this method:

  • verify at least two pay amounts in the time period beginning 45 days before the file date through the interview date (or the date the EDG is being processed if an interview is not required).
  • continue to enter amounts for all of the pay periods that are required budget months using the year-to-date (YTD) amounts or average amount of the provided payments in any pay dates other than those verified.

If the household states the payments are representative of current income, use YTD amounts if available for missing pay periods or average the verified payments and use the averaged amount for other unverified pay periods in all budget months. Use more than two pay amounts if they are available, but do not pend to require more than two pay amounts when an individual says the pay amounts are representative and the statement is not questionable.

Exception: For Children's Medicaid, see policy in A-1371, Verification Sources.

Use a different method to anticipate income when someone has a new job, seasonal fluctuations occur or expected changes (such as changes in work hours or rate of pay) cause too many past amounts to be unrepresentative.

Different methods of anticipating future income are:

  • asking the employer for an estimate,
  • using less than the required number of pay periods when they are not all available,
  • anticipating hours times rate of pay, or
  • other methods.

Always document the reason and calculations for the method used.

Example: When an applicant provides paychecks, use the YTD amounts to determine the missing pay amounts, if possible. In this situation, the gross pay on the checks is representative.

Pay Date Gross Pay Amount YTD
05/11    
05/25 $265.50 $4,675.93
06/09 (missing paycheck) (missing paycheck)
06/23 $262.84 $5,199.18

You must have the checks before and after the missing paycheck. Take the YTD gross amount of the check prior to the missing paycheck and subtract it from the check received directly before the missing paycheck.

$5,199.18

YTD of check dated 06/23

−$4,675.93

YTD of check dated 05/25

$523.25

 

Then subtract the gross pay amount of the paycheck received after the missing paycheck from the difference of the YTD amounts.

$523.25

Difference of the YTD amounts

−$262.84

Gross Pay Amount of check dated 06/23

$260.41

Gross Pay Amount of check dated 06/09

Then add the three amounts together and divide by three to determine the average for the missing pay period.

$265.50

Gross amount of 05/25

+$260.41

Gross amount of 06/09

+$262.84

Gross amount of 06/23

$788.75 ÷ 3

= $262.92 average for 05/11

Non-Fluctuating Income

All Programs except TP 43, TP 44 and TP 48

  • Verify that a source of income (earned or unearned) does not fluctuate.
  • Verify the frequency of the payment.
  • Require gross pay from only one payment received in the period of time 45 days before the file date through the interview date if the individual states the frequency and gross pay have not changed. Use this income amount for other unverified pay periods in all budget months.

Exception: Do not apply this policy to sources of income that involve fluctuations in pay due to overtime, tips, commission, bonuses, hourly wages, etc.

Examples:

  • At initial certification, Bob Williams provided verification he is paid a salary of $400 gross weekly, with no fluctuations. Bob is now being interviewed for a SNAP redetermination and has one pay stub dated within 45 days of the application file date showing earnings of $400 for the week. Bob states there have been no changes in his weekly gross pay or the pay frequency. One pay stub is acceptable verification in this example as the pay amount and the frequency were previously verified, and the individual states the pay amount and frequency have not changed.
  • Mary Estes is interviewed for a SNAP application and provided one pay stub dated within 45 days of the application file date. Mary states she is paid once a week in the amount of $500 gross and her pay does not fluctuate. The advisor calls and verifies with the employer the individual's pay frequency and that the gross amount does not fluctuate. Once the advisor establishes the pay frequency and that income does not fluctuate, the advisor may accept the single pay stub as verification of gross pay and does not pend for other pay stubs unless the income is otherwise questionable.

A—1355.1  Budgeting Options for SNAP Households

Revision 04-3; Effective April 1, 2004

SNAP

If income is received more than once a month, use monthly converted amounts to compute the monthly average. If the monthly income fluctuates, the household may choose to average its monthly income over the entire certification period. Determine the household's eligibility and benefits based on the average income.

Exception: Do not average the income of destitute households over the certification period.

A—1355.2  How to Use Texas Workforce Commission (TWC) Quarterly Wage Information to Budget Earned Income

Revision 13-2; Effective April 1, 2013

All Programs

The quarterly wage records displayed on TWC inquiry reflect wages earned in the quarter ending as late as one month before the current calendar month, although they are updated only quarterly and therefore may be further in the past. TWC quarters are displayed as a number corresponding to the quarter of the year in which the wages were earned, as illustrated below:

  • the first quarter is January through March and is displayed as a 1 and the corresponding year;
  • the second quarter is April through June and is displayed as a 2 and the corresponding year;
  • the third quarter is July through September and is displayed as a 3 and the corresponding year; and
  • the fourth quarter is October through December and is displayed as a 4 and the corresponding year.

Use the gross monthly amount determined from using TWC wage records, when applicable, in all of the following budget months:

  • application, and
  • on-going.

Note: When determining the budget for prior Medicaid months, see A-831.3, Income Computation.

SNAP, TANF, TP 08 and TP 56

The following sources continue to be the preferred methods of wage verification if they are available without having to pend the EDG to obtain them:

  • the most recent consecutive check stub(s),
  • Form H1028, Employment Verification (Medicaid Buy-In for Children), or
  • TALX, income verification system.

If these preferred sources of verification are not available during the interview, or when processed if no interview is required, and it would be necessary to pend for wage verification, use TWC quarterly wage information as verification as explained below.

Using TWC Quarterly Wage Information as Verification of Earned Income
  1. Did the individual receive pay for all pay periods in all months of the most recent quarter posted from the current employer and none of the months include leave without pay or change in work hours from full-time to part-time?

Yes – Continue

No – Pend for other wage verification

  1. Is the individual still employed by the employer listed on the most recent TWC quarter?

Yes – Continue

  1. Is the individual's pay rate the same now as it was for each month of the most recent quarter reported to TWC?

Yes – Continue

  1. After discussion with the individual, does the individual agree that the result is representative of anticipated future gross wages per pay period?

Note: The advisor must convert the income to the frequency the individual receives the income before discussing with the individual whether the earnings shown in TWC records are representative of current and/or future earnings.

Yes – Use TWC wage record as verification

When reading the TWC wage detail screen, quarters are coded as shown below:

1 = January–March

2 = April–June

3 = July–September

4 = October–December

The code is then followed by the two-digit year in which the quarter was earned.

To convert TWC Quarterly Wages, divide the most recent TWC quarterly wage information by three to get a monthly amount. Divide the monthly amount using the applicable conversion factor (weekly 4.33; bi-weekly 2.17; semi-monthly 2) to obtain the individual's average gross pay per pay period and discuss whether the TWC data reflects "representative" income.

Note: Continue to verify tip income not included on an individual's wage statement by having the individual provide a signed and dated statement, as required by A-1370, Verification Requirements.

TP 40 and Children's Medicaid

If none of the preferred wage verification sources are provided before the application or redetermination is processed, and the advisor would need to pend for verification of earned income, determine if the TWC quarterly wage information can be used as verification of earnings. The TWC wage record may be used as a verification source if the following conditions are met:

  • the current employer listed on the Medicaid application/redetermination form matches the employer listed on the most recent TWC wage record, and
  • all household members for whom the household is applying are eligible based on the TWC quarterly wage information.

Convert the quarterly wage data to monthly income amounts, as described above.

If the income reported on the application/redetermination form makes the household ineligible, then policy in A-1370 does not require the verification of earnings. If a member is ineligible based on the TWC data but appears eligible based on wages reported on the application form, request other income verification.

Note: If the TWC quarterly wage data is older than the verification used in the current SNAP budget, use the SNAP budget to determine eligibility for Medicaid applications/renewals.

A—1356  Income Received Less Often than Monthly

Revision 02-1; Effective January 1, 2002

TANF and Medical Programs

If income is received less often than monthly, prorate the income over the period covered.

SNAP

If income is received less often than monthly,

  • count it in the month received, or
  • prorate it over the period intended to cover (at individual's option). Exception: Do not prorate income of destitute farm workers.

A—1357  Computing Benefits by EDG Action Type

Revision 14-1; Effective January 1, 2014

All Programs

Action Type Budgeting
Application
  • For past months, use the actual amounts for the entire month and use the appropriate conversion factor. For three months prior, use the actual amounts received for the entire month but do not use a conversion factor.
  • For the interview month, use a combination of actual amounts (amounts that have already been received) and projected amounts for amounts that have not been received yet, based on policy in A-1355, How to Project Income.
  • For future months, project amounts.
  • For TWC, see A-1355.2, How to Use Texas Workforce Commission (TWC) Quarterly Wage Information to Budget Earned Income.
Untimely redetermination – interview after the last benefit month
  • For past months, use the actual amounts for the entire month and use the appropriate conversion factor. For three months prior, use the actual amounts received for the entire month but do not use a conversion factor.
  • For the interview month, use a combination of actual amounts (amounts that have already been received) and projected amounts for amounts that have not been received yet, based on policy in A-1355, How to Project Income.
  • For future months, project amounts.
  • For TWC, see A-1355.2, How to Use Texas Workforce Commission (TWC) Quarterly Wage Information to Budget Earned Income.
Untimely redetermination – interview during the last benefit month
  • For the new certification period, project amounts.
  • For TWC, see A-1355.2, How to Use Texas Workforce Commission (TWC) Quarterly W age Information to Budget Earned Income.
Timely redetermination
  • For the new certification period, project amounts.
  • For TWC, see A-1355.2, How to Use Texas Workforce Commission (TWC) Quarterly Wage Information to Budget Earned Income.
Changes Project amounts.
Claims/Restored benefits Use actual amounts.

A—1358  How to Budget Expenses

Revision 10-2; Effective April 1, 2010

All Programs

To determine eligibility and benefits, consider only household expenses expected during the certification period.

Project expenses using the most recent month's bills and any anticipated increases or decreases. The household may choose to average expenses if they are anticipated to fluctuate or occur less often than monthly.

If the individual is billed for expenses weekly, biweekly or semi-monthly, use the income conversion factors found in A-1353, How to Convert Income to Monthly Amounts, to determine monthly expenses.

A—1359  How to Determine Spend Down

Revision 05-1; Effective January 1, 2005

A—1359.1  Determining Eligibility/Spend Down for the Application and Following Months

Revision 13-2; Effective April 1, 2013

TP 56 and TP 32

Determine eligibility, and, if applicable, the spend down amount for children and pregnant women as follows:

  1. Use TANF prospective budgeting procedures to determine monthly gross income.
  2. Deduct:
    • work-related expense standard,
    • child care costs,
    • payments to dependents outside the household,
    • alimony,
    • child support payments, and
    • child support disregards.
  3. Compare the adjusted gross income to the appropriate Medically Needy Income Limit (MNIL). If the adjusted gross income is more than the MNIL, determine the spend down amount for the child or pregnant woman by subtracting the MNIL from the adjusted gross income, rounding down to the nearest dollar. Continue to Step 4.

  4. Does the household have or anticipate medical expenses for the budget group to meet the spend down? Then TIERS will process the denial or Open/Close EDG
    Yes Open/Close. Inform the individual about spend down per A-1532.1, Spend Down EDGs.
    No

    Denial. Exception: If the certified group member(s) is enrolled in the Texas Department of State Health Services' (DSHS) Children with Special Health Care Needs (CSHCN) Program, TIERS will process the Open/Close EDG. Inform the individual about spend down per A-1532.1, Spend Down EDGs



A—1359.2  Determining Eligibility/Spend Down for Three Months Prior

Revision 13-2; Effective April 1, 2013

TP 56 and TP 32

Determine eligibility, and, if applicable, the spend down amount for children and pregnant women for any of the three months prior to the application month in which a member of the certified group meets all eligibility criteria and

  • has unpaid medical bills during the prior month(s), or
  • received Medicaid services from the Texas Department of State Health Services during the prior months.
  1. Use actual income to determine monthly gross income.
  2. Deduct:
    • standard work-related expense,
    • child care costs,
    • payments to dependents outside the household,
    • alimony,
    • child support payments, and
    • child support disregards.
  3. Compare the adjusted gross income to the appropriate Medically Needy Income Limit (MNIL). If the adjusted gross income is more than the MNIL, determine the spend amount for the child or pregnant woman by subtracting the MNIL from the adjusted gross income, rounding down to the nearest dollar. Continue to Step 4.

  4. Does the household have or anticipate medical expenses for the budget group to meet the spend down? Then TIERS ...
    Yes includes the month as a certified EDG.
    No Lists the month as a denied EDG.

A—1359.3  Corrections to a TP 56 EDG

Revision 13-2; Effective April 1, 2013

TP 56

Use the following procedures to notify the MN Clearinghouse when:

  • you must make a correction to a TP 56 EDG with spend down; and
  • the Clearinghouse has not processed the EDG.

Contact Texas Medicaid and Healthcare Partnership at 1-800-252-8263. Ask to speak with someone concerning a Medicaid EDG with spend down. Before calling, make sure you have the following information concerning the EDG:

  • EDG name;
  • EDG number;
  • advisor's name;
  • advisor's employee number and mail code;
  • advisor's telephone number; and
  • all information about the change.

A—1360  Determining Countable Income In Special Household Situations

Revision 04-7; Effective October 1, 2004

A—1361  Alien Sponsor's Income

Revision 14-1; Effective January 1, 2014

All Programs

Count the income of the alien's sponsor and spouse (if the spouse also executed an affidavit of support). See Glossary for the definition of an alien sponsor.

Do not apply this policy to sponsored aliens who:

  • are children under age 18;
  • are ineligible for benefits (examples include those who are disqualified from receiving benefits or those considered non-members, such as students who do not meet SNAP student eligibility criteria);
  • have become naturalized U.S. citizens;
  • have worked or can receive credit for 40 quarters of work;
  • have a deceased sponsor;
  • are refugees, parolees, asylum grantees, Amerasians, victims of severe trafficking or Cuban/Haitian entrants;
  • are battered alien spouses of U.S. citizens or of legal permanent residents, children of battered aliens, or parents of battered children, if HHSC determines that the battery is substantially related to the need for benefits, and the battered individual does not live with the batterer.

    Do not deem the sponsor's income for 12 months for these battered aliens, beginning the month the alien is certified for any benefit. Do not assign a new 12-month period if the alien reapplies after denial of benefits. After the first 12 months, continue exempting the sponsor's income from deeming if a court or the U.S. Citizenship and Immigration Services (USCIS) recognizes the battery, HHSC determines that the battery has a substantial connection to the need for benefits, and the alien does not live with the batterer.

    Use the following list of circumstances as a guide in making the substantial connection between the battery and the need for benefits. Determine if the battered alien needs the benefits:

    • to become self-sufficient after leaving the abuser;
    • to escape the abuser and/or the community in which the abuser lives;
    • to ensure the battered alien's safety;
    • to replace financial support lost as a result of the separation from the abuser;
    • because of the loss of a job or reduced earnings resulting from the battery or cruelty;
    • because the battered alien requires medical attention or mental health counseling, or now has a disability due to the battery;
    • because the battered alien lost the home, and the separation from the abuser jeopardizes the battered alien's ability to care for the children;
    • to reduce nutritional risks;
    • to obtain medical care for a pregnancy resulting from sexual assault or abuse; or
    • to replace medical coverage or health care services.
  • are indigent. Only use this criterion if the alien does not meet one of the  other exceptions noted in this list. Deem only the amount that the sponsor will provide the alien for a 12-month period that begins with the date HHSC makes the indigence determination. Each determination is renewable for additional 12-month periods.

Each time a determination of indigence is made, send a memo with the name, address, Social Security number and date of birth, of both the indigent alien and the indigent alien’s sponsor, to Texas Works Policy Section, 909 W. 45th St., Bldg. 2, Mail Code 2115, Austin, TX 78751. Before sending the memo, inform the alien that state office is required to report the sponsor to the Attorney General for failure to provide support as required on the sponsor affidavit. Allow the sponsored alien to choose to have the sponsor's income deemed if the alien does not want state office to send this report.

TANF and Medical Programs

This policy does not apply to:

  • sponsored aliens whose sponsors receive TANF or SSI, or
  • the dependent child of a sponsor or sponsor's wife.

Children’s Medicaid

When determining eligibility for a child whose parent is a sponsored alien and is a required member of the budget group, count the income of the parent’s sponsor. Exception: Do not count the income of the parent’s sponsor if the parent meets one of the sponsored alien exceptions in this section under the All Programs label.  

SNAP

This policy does not apply to:

  • sponsored aliens whose sponsors receive SNAP as a member of the same household, or
  • organizations or groups that sponsor aliens.

A—1361.1  Budgeting the Individual Sponsor's Income

Revision 13-3; Effective July 1, 2013

TANF and Medical Programs

Consider all the sponsor's gross countable income as available to the alien's household, minus only the following deductions.

  • The lesser of:
    • 20% of the total gross monthly earned income (including net self-employment earned income); or
    • $175.
  • The budgetary needs (100%) figure of a one- or two-parent caretaker TANF EDG for the sponsor's family size. For Medical Programs, use the appropriate income limits figure for the sponsor's family size. Include all members of the household the sponsor claims or could claim as tax dependents. Note: For TANF, see A-1424, Diversions, Alimony and Payments to Dependents Outside the Home, to determine:
    • whether to use the needs allowance of an adult or a child; or
    • the needs amount for more than two adults.
  • The total amount the sponsor pays to a claimed tax dependent living outside the home.
  • Total alimony or child support the sponsor pays to persons living outside the home.

Count the remaining amount as unearned income for the alien.

SNAP

Consider all the sponsor's gross countable income as available to the alien's household, minus only the following deductions:

  • 20% of the sponsor's total monthly gross earned income (including net self-employment earned income).
  • An amount equal to the gross income limit for a household including the sponsor, the spouse, and any others claimed or who could be claimed as tax dependents (even if living outside the home ). Do not include people who live with the sponsor but cannot be claimed as tax dependents.

Compare the countable income computed with actual contributions the alien received from the sponsor and spouse.

Budget the higher of the two amounts as unearned income to determine the alien's eligibility and benefits.

A—1361.2  Prorating the Sponsor's Income

Revision 01-7; Effective October 1, 2001

All Programs

If several aliens are sponsored, prorate the remaining income evenly among all the aliens who apply for or receive benefits.

A—1361.3  Budgeting the Organization Sponsor's Income

Revision 01-7; Effective October 1, 2001

TANF

An alien sponsored by an organization is not eligible for TANF unless the alien:

  • can prove the organization no longer exists; or
  • provides income and resource information for the organization.

If the alien provides income and resource information, contact Texas Works Policy Section, state office, for special budgeting procedures.

A—1362  Disqualified Members

Revision 13-2; Effective April 1, 2013

TANF

Count the income of a disqualified legal parent, including a disqualified second parent. Follow procedures in A-1362.1, TANF — Budgeting for a Legal Parent Disqualified for Alien Status, Failure to Prove Citizenship, Noncompliance with the Unmarried Minor Parent Domicile Requirement, or State Time Limits, or A-1362.2, TANF — Budgeting for a Household Member Disqualified for Noncompliance with SSN, TPR, Failure to Timely Report a Certified Child's Temporary Absence, Intentional Program Violation, Being a Fugitive, Refusing to Cooperate with the Quality Control Process, or a Felony Drug Conviction.

Count the income of a disqualified child who is a required member of the certified group. Follow procedures in A-1362.2.

Do not count the income of other noncertified children.

SNAP

Count all but a prorated portion of the income of a person disqualified for one of the following reasons:

  • The applicant failed to provide or apply for a Social Security number.
  • The applicant is an ineligible alien (including an alien awaiting sponsor information or proof of sponsor information).
  • The applicant is waiting for verification of a questionable claim of U.S. citizenship.
  • An able-bodied adult without dependents (ABAWD) has received the maximum months of benefits without meeting the 18-50 work requirement.

Count all income, unless otherwise exempt, of a member disqualified for:

  • intentional program violation;
  • Employment and Training (E&T) noncompliance;
  • felony drug convictions; or
  • being a fugitive.

Disqualified people are considered household members although they are not allowed to participate.

Medical Programs

Count the income, needs, resources and medical expenses of a disqualified member.

A—1362.1  TANF — Budgeting for a Legal Parent Disqualified for Alien Status, Failure to Prove Citizenship, Noncompliance with the Unmarried Minor Parent Domicile Requirement or State Time Limits

Revision 13-2; Effective April 1, 2013

TANF

For EDGs with a legal parent who is disqualified for one of the reasons above and who has income, follow the budgeting process below to determine the amount of the legal parent's income to count against the needs of the remaining certified group before applying the two needs tests.

  1. Determine the legal parent's countable monthly gross earned income.
  2. Subtract the standard $120 work-related expense deduction from earned income.
  3. Add the disqualified parent's unearned income to the net earned amount and subtract the following three amounts:
    • The monthly amount the parent actually pays to a person living outside the home that the parent can claim as a tax dependent or is legally obligated to support.
    • The monthly amount of alimony and child support payments the parent actually makes to persons outside the home.
    • The budgetary needs amount for the parent and other noncertified members in the home the parent can claim as tax dependents or is legally obligated to support (including SSI recipients). Use the needs figure applicable to the number of noncertified members (including the parent with income). Note: See A-1424, Diversions, Alimony, and Payments to Dependents Outside the Home, to determine
      • whether to use the needs allowance of an adult or a child, or
      • the needs amount for more than two adults.
      Exception: Do not include the needs of a dependent who is disqualified for a reason other than citizenship.
  4. Count the remaining income against the needs of the certified group.
  5. Note: If a noncertified stepparent with income also lives in the home, complete the steps in A-1366.2, Stepparent Budgeting Procedures, before completing this process.


A—1362.2  TANF — Budgeting for a Household Member Disqualified for Noncompliance with SSN, TPR, Failure to Timely Report a Certified Child's Temporary Absence, Intentional Program Violation, Being a Fugitive or a Felony Drug Conviction

Revision 13-2; Effective April 1, 2013

TANF

Follow the same budgeting procedures used for a certified household member, except do not include the needs of the disqualified member.

Exception: If the household member is not a required member of the certified group, remove the non-required member’s needs. Additionally, do not count the non-required member’s income and resources against the remaining members of the certified group.

If the member has expenses for which income must be diverted, follow policy in A-1424, Diversions, Alimony, and Payments to Dependents Outside the Home.

A—1362.3  SNAP — Budgeting for Members Disqualified for Citizenship, 18-50 Work Requirement or Noncompliance with Social Security Number Requirements

Revision 13-2; Effective April 1, 2013

SNAP

  • Total all of the disqualified person's countable income.

    Notes:

    • Do not apply income of an alien's sponsor to a disqualified-sponsored alien.
    • If a disqualified member receives TANF, count the disqualified member's pro rata share of the TANF grant. Enter each TANF recipient's portion of the grant as TANF income.
  • Divide the disqualified person's countable income by the number of household members, including the disqualified member. This determines the pro rata share of income.
  • Count all pro rata shares of income except those of a disqualified member(s).

Earned Income Deduction (EID) — Deduct the EID from the part of the disqualified member's earned income that is counted in the household.

Standard Deduction Apply the appropriate standard deduction amount only for eligible household members.

Dependent Care, Child Support Expense, Shelter Expense and Homeless Shelter Standard Deductions — Divide these expenses billed to or paid by the disqualified member equally among all SNAP household members, including the disqualified member. Include all pro rata shares in the household budget except those of disqualified members. Enter the allowable pro rata share under an eligible SNAP household member.

Note: If only the disqualified member has income, consider the expenses to be paid by that member.

Utility or Telephone Deductions — Allow the appropriate utility or telephone standard. Do not prorate utility or telephone deductions.

Medical Deduction — Prorate the actual medical expense or the standard medical deduction among all household members and do not allow the pro rata share for a disqualified member’s medical bills (including situations in which the disqualified member is billed for or pays the medical bills of a remaining eligible household member).

Note: If only the disqualified member has income, consider the expenses to be paid by that member.

Unlimited Excess Shelter Deduction — Allow this deduction even if the disqualified member is the only elderly or member with disabilities in the household.

Income Test and Household Size — Do not count the disqualified member in determining the household's income limits or the amount of the household's allotment.

Example of Procedures for Budgeting TANF Income of Households with Members Disqualified for Citizenship/Alien Status Who are Eligible for TANF but Not SNAP

A household consists of Mr. and Mrs. Bush and their four children. Mr. and Mrs. Bush are lawful permanent residents and their four children are U.S. citizens. Mr. Bush is unemployed and the household receives a TANF-State Program grant of $294. Both Mr. and Mrs. Bush are eligible for TANF but are disqualified aliens for SNAP.

For TANF/SNAP EDGs, TIERS will automatically prorate the TANF income for the SNAP budget, using the following formula.

Step Action

1

Divide the TANF grant by the number of TANF certified household members to arrive at the pro rata share for each member.

$294 ÷ 6 = $49 (each member's pro rata share of the grant).
2

Multiply the pro rata shares of the grant by the number of TANF recipients who also are eligible for SNAP benefits.

$49 x 4 = $196

3

Divide the disqualified person's pro rata share of the TANF benefits by the total number of SNAP household members, including the disqualified member(s). Count the pro rata share of TANF attributed to all eligible SNAP household members.

$49 ÷ 6 = $8.17 x 4 = $32.68 (countable share of Mr. Bush's TANF)
$49 ÷ 6 = $8.17 x 4 = $32.68 (countable share of Mrs. Bush's TANF)

4

Determine total countable TANF by adding countable amounts from Steps 2 and 3.

$196 (children’s share) + $65.36 = $261.36.

A—1362.4  SNAP — Budgeting for Persons Disqualified for Intentional Program Violations, SNAP Employment Services Noncompliances, Felony Drug Convictions or Being a Fugitive

Revision 13-2; Effective April 1, 2013

SNAP

Income —  Count all income of a disqualified member unless it is otherwise exempt.

Income Deductions —  Allow all income deductions and expenses of a disqualified member.

Standard Deduction —  Do not include the disqualified member in the household size when applying the standard deduction.

Shelter/Medical Deductions —  Allow appropriate shelter and medical deductions even if the disqualified person is the only elderly or person with disabilities in the household.

Although the household can receive uncapped shelter deductions, the household must still pass both the gross and net income tests if the disqualified person was the only elderly member or member with disabilites in the household.

Income Test and Household Size —  Do not include the disqualified member in determining the household income limits or the amount of household's allotment.

A—1363  Diverting Income

Revision 13-2; Effective April 1, 2013

TANF

Divert income if a caretaker, second parent, minor parent, or married minor has countable income and

  • there are noncertified persons living in the home who can be claimed as tax dependents or has a legal obligation to support (including SSI recipients and children receiving TP 19 SSI Medicaid), or
  • pays alimony or child support to persons outside the home, or
  • makes payments to persons outside the home who can be claimed as tax dependents or has a legal obligation to support.

Also complete this process if a noncertified stepparent lives in the home and only the legal parent has income, or they both have income and the stepparent's income does not meet all of the stepparent’s and the noncertified dependent's needs in A-1366.2, Stepparent Budgeting Procedures. If both the stepparent and legal parent have income, complete the budgeting process in A-1366.2 before this process.

Line 1 – Payments to Dependents Outside Home — The actual amount of any payments made to persons living outside the home whom the parent can claim as tax dependents or is legally obligated to support.

Line 2 – Alimony and Child Support Payments — The actual amount of alimony or child support payments the parent makes to persons outside the home.

Line 3 – 100% Needs Amount — The budgetary (100%) needs figure for all noncertified members in the home the legal parent can claim as tax dependents or is legally obligated to support including SSI recipients, except do not include the needs of a parent/dependent who is disqualified for a reason other than citizenship/alien status, state time limits or unmarried minor parent domicile requirement. Use the single parent caretaker needs figure if there is a noncertified stepparent in the home, or a second legal parent in the home who receives SSI or is disqualified for citizenship/alien status, state time limits or noncompliance with the unmarried minor parent domicile requirement. See A-1424, Diversions, Alimony, and Payments to Dependents Outside the Home, to determine:

  • whether to use the needs allowance of an adult or a child, or
  • the needs amount for more than two adults.

Line 4 – Maximum Amount to be Diverted — The total of lines 1, 2 and 3 (except if A-1366.2 is also completed, follow instructions in A-1366.2 to enter remaining needs). This is the maximum amount of diversions that can be deducted from the individual's total income. The actual amount diverted in any needs test may be less, since the diverted amount cannot exceed the individual's total income and be deducted from income of another household member unless they will be filing a joint tax return or they are married.

TIERS will complete this process based on the entries on the Relationship page.

Related Policy
Diversions, Alimony, and Payments to Dependents Outside the Home, A-1424

A—1364  Migrant Farm Workers in the Workstream

Revision 02-3; Effective April 1, 2002

SNAP

Migrant farm workers are people who have moved into a county looking for work cultivating crops, canning, or packing. The household must include at least one migrant farm worker to be classified as a migrant household.

A—1364.1  Guidelines for Determining Income of Migrant Workers

Revision 13-2; Effective April 1, 2013

All Programs

  • Do not anticipate income merely because there is work available in the area.
  • Do not assume that everyone in an area will be employed, even if work is available.
  • Count future income only when you know the amount and month of receipt.
  • Consider the effect of future migrations since these migrations might interrupt the expected income.
  • Consider the grower, not the crew chief, as the source of income.
  • Distinguish between travel advances and wage advances. If a travel advance is a reimbursement for travel expenses, do not count the advance as income. Count wage advances for travel expenses as income if the migrant worker has a written contract from the prospective employer that states the travel advance is a wage advance that will be deducted from wages earned later.
  • Separate the income of a student under 18 from the rest of the migrant household's income. If the student's earnings or amount of work performed cannot be distinguished from that of other household members, divide the total income equally among the working members and exclude the child's share.

A—1365  Unmarried Minor Parent Income

Revision 13-2; Effective April 1, 2013

TANF and TP 08

Follow these steps when determining eligibility for households with an unmarried minor parent.

Note: Do not use minor parent budgeting procedures when determining eligibility for married minor parents.

  1. Determine which of the following situations describes the household:

    Situation Household Composition
    A minor parent
    minor parent's child deprived due to absence
    minor parent's legal parent(s)
    minor parent's minor siblings
    B minor parent
    minor parent's child deprived due to absence
    minor parent's legal parent and stepparent
    minor parent's minor siblings
    C minor parent
    minor parent's child deprived due to absence
    minor parent's legal parent and stepparent
    minor parent's minor siblings
    minor parent's legal parent's and stepparent's mutual child
    D minor parent
    legal parent of minor parent's child (not married to minor parent)
    minor parent's mutual child
    minor parent's legal parent(s)
    minor parent 's minor siblings
    E minor parent
    legal parent of minor parent's child (not married to minor parent)
    minor parent's mutual child
    minor parent's child deprived due to absence
    minor parent's legal parent(s)
    minor parent 's minor siblings


  2. If the household situation is described in situation ... and the legal parent's choice to apply for TANF and/or TP 08 is ... include in the certified group ... using these budgeting procedures ...
    A

    minor parent

    minor parent's child deprived due to absence

    minor parent's legal parent(s)

    minor parent's minor siblings

    yes, all household members

    Include the minor parent's child if the caretaker or payee requests that the child be certified. Treat the minor parent as a child.

    count income according to TANF guidelines for exempt and countable income.

    If ineligible, process minor parent's application using "A" "no" if the minor parent wants to apply.

    - no, minor parent and minor parent's child deprived due to absence apply the legal parent's income using stepparent budgeting procedures (divert for legal parent's and siblings' needs).

    Treat the minor parent's income according to adult caretaker policies.

    If ineligible because of income and the TANF and/or TP 08 budget included applied income of one cent or more from the minor parent's parent, determine Medicaid eligibility according to the Medical Programs Hierarchy in A-132.1.

    B

    minor parent

    minor parent's child deprived due to absence

    minor parent's legal parent and stepparent

    minor parent's minor siblings

    yes, all members except the stepparent. Also include the stepparent if the legal parent is incapacitated (A-221, #7).

    Include the minor parent's child if the caretaker or payee requests that the child be certified. Treat the minor parent as a child.

    apply the stepparent's income if the stepparent is not included in the EDG. Follow budgeting procedures in A-1366.

    If ineligible

    • because of income and the TANF and/or TP 08 budget included applied income of one cent or more from the stepparent, determine Medicaid eligibility for the siblings according to the Medical Programs Hierarchy in A-132.1, and
    • process the minor parent's application using "B" "no" if the minor parent wants to apply.
    - no, minor parent and minor parent's child deprived due to absence. apply the minor parent's legal parent's income using stepparent budgeting procedures (divert for needs of legal parent, stepparent, and siblings).

    Do not count the stepparent's income.

    Treat the minor parent's income according to adult caretaker policies.

    If ineligible because of income and the TANF and/or TP 08 budget included applied income of one cent or more from the minor parent's parent, determine Medicaid eligibility for minor parent's child according to the Medical Programs Hierarchy in A-132.1.

    C

    minor parent

    minor parent's child deprived due to absence

    minor parent's legal parent and stepparent

    minor parent's minor siblings

    minor parent's legal parent's and stepparent's mutual child

    yes, all household members.

    Include the minor parent's child if the caretaker or payee requests that the child be certified. Treat the minor parent as a child.

    count income according to TANF or TANF-SP guidelines for exempt and countable income.

    If ineligible,

    • because of income and the TANF and/or TP 08 budget included applied income of one cent or more from the minor parent's stepparent, determine Medicaid eligibility for minor parent's siblings according to the Medical Programs Hierarchy in A-132.1 (except the mutual child);
    • process minor parent's application using "C" "no" if the minor parent wants to apply.
    - no, minor parent and minor parent's child deprived due to absence. follow budgeting procedures in "B" "no" (also divert for the legal parent's and stepparent's mutual child).
    D

    minor parent

    legal parent of minor parent's child (not married to minor parent)

    minor parent's mutual child

    minor parent's legal parent(s)

    minor parent's minor siblings

    yes, all household members except the other parent of minor parent's mutual child.

    Include the minor parent's child if the caretaker or payee requests that the child be certified. Treat the minor parent as a child.

    apply the income of the minor parent's child's noncertified other parent using stepparent budgeting procedures (divert for the needs of the other parent; also, divert for the other parent's mutual child's needs if the child is not included in the grant).

    If ineligible, process the minor parent's application using "D" "no" if the minor parent wants to apply.

    - no, minor parent, minor parent's mutual child, and other parent of minor parent's mutual child. apply the minor parent's legal parent(s) income using stepparent budgeting procedures (divert for the legal parent(s) and the siblings needs).

    Treat the minor parent's and second parent's income according to adult caretaker policies.

    If ineligible because of income and the TANF and/or TP 08 budget included applied income of one cent or more from the minor parent's parent, determine Medicaid eligibility for minor parent's mutual child (including the child's other parent in the budget group) according to the Medical Programs Hierarchy in A-132.1.

    E

    minor parent

    legal parent of minor parent's child (not married to minor parent)

    minor parent's mutual child

    minor parent's child deprived due to absence

    minor parent's legal parent(s)

    minor parent 's minor siblings

    yes, same household composition policies as "D" "yes." follow budgeting procedures in "D" "yes."

    If ineligible, process the minor parent's application using "E" "no" if the minor parent wants to apply.

    - no, minor parent, minor parent's mutual child, and other parent of minor parent's mutual child.

    Also, include the minor parent's child deprived due to absence.

    follow budgeting procedures in "D" "No."

    If the other parent of the mutual child is a stepparent to the child deprived due to absence, also process Medicaid according to the Medical Programs Hierarchy in A-132.1 for the minor parent's child deprived due to absence if the child is ineligible and the TANF and/or TP 08 budget included applied income of one cent or more from the minor parent's spouse.


    Notes:

    • If the minor parent lives with both parents, allow the caretaker EDG with second parent needs figure when diverting their income.
    • If the income of the minor parent's parent is diverted, do not count their resources. Refer to A-1247 for stepparents.
    • When the parents of the minor parent apply for TANF and/or TP 08 and the diverted amount from the minor parent's stepparent is a negative number, divert the remaining amount from the minor parent's legal parent's income.

      Do not carry over any remaining diversion amount to other household members' income.

    • Before denying any individual for whom an application is made, determine eligibility for other Medical Program coverage.

Related Policy
TP 47 Budgeting Procedures – When Applied Stepparent or Grandparent Income Causes TP 08 Ineligibility, A-1368

A—1366  Stepparent EDGs

Revision 13-2; Effective April 1, 2013

TANF and TP 08

Always consider a stepparent's income when determining financial eligibility for the certified group.

Use stepparent budgeting procedures when a minor parent and the minor parent’s children living with the minor parent's parent are applying for TANF or TP 08 and they meet the criteria in A-221, Who is Included, No. 6.

If the legal parent and stepparent live in the home and have mutual children, the household members cannot be separated. Budget both parents' income using legal parent budgeting procedures.

Related Policy
TP 47 Budgeting Procedures, A-1368
New TANF Spouse's Earnings, A-1369

A—1366.1  How to Determine Budgeting Procedures in Stepparent EDGs

Revision 13-2; Effective April 1, 2013

TANF and TP 08

Include the stepparent in the grant only if the stepparent wants to be included and:

  • the stepparent is the only parent in the home, or
  • both legal parent and stepparent are in the home and the legal parent is disabled (according to procedures in A-1050, Deprivation Based on Incapacity).

If the stepparent is included in the grant, count the stepparent's income and resources as a legal parent's would be counted. Allow the usual earned income deductions.

If the stepparent is not included in the grant, budget the stepparent's income using the stepparent budgeting procedures in A-1366.2 to determine the amount of monthly income to be applied to the certified group. Follow these budgeting procedures even if the stepparent does not meet TANF citizenship requirements.

A—1366.2  Stepparent Budgeting Procedures

Revision 13-2; Effective April 1, 2013

TANF and TP 08

Before applying either needs test, determine the amount of the stepparent's income that is counted to meet the certified group's needs:

  1. Total the stepparent's countable gross earned income.
  2. Deduct the stepparent's work-related expenses ($120).
  3. Add the stepparent's unearned income to the net earned amount.
  4. Deduct the stepparent's actual support payments for tax dependents outside the home and monthly expenses for alimony or child support. Deduct an amount equal to the budgetary needs (100%) of a single parent caretaker EDG for the stepparent and the stepparent's noncertified tax dependents living in the home (do not include the needs of a dependent that is disqualified for a reason other than citizenship).

    Note: See A-1424 to determine

    • whether to use the needs allowance of an adult or a child, or
    • the needs amount for more than two adults.
  5. Apply the stepparent's remaining income to the certified group as unearned income.

Notes:

  • Count the stepparent's applied income only from the date of marriage.
  • Use stepparent budgeting procedures when a minor parent and the minor parent's children living with the minor parent's parent are applying for TANF and/or TP 08 and they meet the criteria in A-221, Who is Included, No. 6.

See A-1363, Diverting Income, for the budgeting process  when only the legal parent has income or the legal parent and stepparent have income.

A—1366.3  Budgeting Procedures in Stepparent EDGs When Both Parents Have Eligible Children for Whom They Want to Apply

Revision 13-2; Effective April 1, 2013

TANF and TP 08

To determine eligibility and benefits, follow these steps:

  1. Test eligibility for each parent's EDG individually as separate cases. Consider only the income and circumstances of the caretaker and children for whom the caretaker is applying. Do not apply the stepparent's income in this initial step.
  2. If both applicants are eligible, work the TANF and TP 08 as separate cases for each EDG group. Do not divert or apply income from either parent.
  3. If both EDGs are ineligible, deny them both.
  4. If one EDG is ineligible and the other eligible, deny the ineligible EDG and rebudget the eligible EDG. Consider the ineligible parent a stepparent and apply the ineligible parent's income using stepparent budgeting procedures.

Notes:

  • Divert income for an ineligible child from only one parent when budgeting for step 1 and step 3. Divert income from both parents for the same child only when they will be filing a joint tax return or they are married.
  • If the household includes eligible mutual children, the household members cannot be separated. Budget both parents' income using legal parent budgeting procedures.

A—1367  Strikers

Revision 13-2; Effective April 1, 2013

All Programs

A striker is anyone who participates with one or more other employees in a work slow-down or stoppage. This includes a stoppage resulting from the expiration of a collective bargaining agreement.

A striker's status ends only when the striker returns to the job, retires, quits, is locked out, or is fired, regardless of the length of the strike.

Do not consider a person a striker if the person is:

  • exempt from work registration on the day before the strike for any reason other than employment;
  • not participating in the strike, but cannot work because of the strike;
  • afraid to cross the picket line because of threatened harm; or
  • locked out of the job by an employer, including an individual who was on strike before the lock-out.

A—1367.1  Eligibility of Strikers

Revision 13-2; Effective April 1, 2013

TANF, TP 47, TP 08 and TA 31

A family is not eligible for TANF, TP 47, TP 08 and TA 31 for any month in which the caretaker or second parent is participating in a strike.

SNAP

A household with a striker is ineligible for SNAP unless the household:

  • was eligible immediately before the strike; and
  • is still eligible.

Pre-Strike Eligibility

Use the income of all household members (including the striker) as of the day before the strike. If the household is ineligible, deny the household.

If the household was eligible before the strike, compute current eligibility.

Current Eligibility

  1. Compare the striker's income on the day before the strike with the striker's current income (including union benefits and part-time jobs). Count the higher of the two incomes.
  2. Add the striker's income to the current income of other household members.

    If the household is not currently eligible, deny the household.

    If the household is eligible based on both current and pre-strike income, the household is eligible if it meets all other eligibility criteria. Consider other eligibility criteria the same as income. The household must be eligible currently and before the strike.

TP 40, TP 43, TP 44, TP 48, TP 33, TP 34, TP 35 and TP 36

This policy is not applicable to these programs.

A—1368  TP 47 Budgeting Procedures — When Applied Stepparent or Grandparent Income Causes TP 08 Ineligibility

Revision 13-2; Effective April 1, 2013

A—1368.1  TP 47 Budgeting Procedures When the Legal Parent Is Not in the Home

Revision 13-2; Effective April 1, 2013

TP 08

If a stepparent lives with the stepchild, and the legal parent is not in the home, follow the procedures below before considering TP 47.

Step Action
1 Consider the stepparent as the caretaker of the stepchild if the stepparent chooses to be a caretaker. Count the stepparent's full income towards the TP 08 Eligibility Determination Group (EDG). If the income is below the TANF limits, certify the stepchild and the stepparent on the TP 08 EDG. If the income exceeds the TANF income limits and the budget includes at least one cent or more of the stepparent's income, go to Step 2.
2

Consider the stepparent a payee for the TP 08 EDG. Use stepparent budgeting (A-1366.2, Stepparent Budging Procedures). Apply the stepparent's income towards the stepchild's TP 08 EDG. If income does not exceed the TANF limits, certify the stepchild for TP 08. If the income:

  • exceeds the TANF limits, and
  • includes one cent or more of the stepparent's applied income,

deny the TP 08 EDG and go to Step 3.

3

Test stepchild for Children's Medicaid (TP 43, TP 44 and TP 48) following regular budgeting procedures. If the income does not exceed the Children's Medicaid income limits, certify the stepchild for Children's Medicaid. If the income exceeds the Children's Medicaid income limits, deny the Children's Medicaid EDG and go to Step 4.

4

Certify the stepchild for TP 47.


A—1368.2  TP 47 Budgeting Procedures When the Legal Parent Is in the Home

Revision 13-2; Effective April 1, 2013

TP 08

If a stepparent or grandparent lives with the stepchild or minor parent's child and the legal parent is in the home, use the following process to determine eligibility.

If the legal parent is in the home and ... then ...
the stepparent has income,

follow policy in A-1366.1, How to Determine Budgeting Procedures in Stepparent EDGs, to determine if the stepparent can be included in the budget group.

If the stepparent is included in the budget group, follow regular legal parent budgeting procedures and certify the children for Medicaid according A-132.1, Medical Programs Hierarchy.

If the stepparent is not included in the budget group, use stepparent budgeting (See A-1366.2, Stepparent Budgeting Procedures) and follow Steps 2, 3 and 4 in A-1368 to determine eligibility for the stepchild.

the grandparent has income,

follow policy in A-221, Who is Included, No. 6, to determine if the minor parent and children can be certified separately from the minor parent's parent (grandparent).

If the grandparent is included in the budget group, follow regular legal parent budgeting procedures and certify the children for Medicaid according to A-132.1, Medical Programs Hierarchy.

If the grandparent is not included in the budget group, use stepparent budgeting (A-1366.2) and follow Steps 2, 3 and 4 in A-1368.1, TP 47 Budgeting Procedures When the Legal Parent Is Not in the Home, to determine eligibility for the minor parent's children.

both the stepparent and the legal parent have children for whom they apply for TP 08, follow policy in A-1366.3, Budgeting Procedures in Stepparent EDGs When Both Parents Have Eligible Children for Whom They Want to Apply.

Related Policy
Who is Included, A-221
Who is Included, A-241.1

A—1369  New TANF Spouse's Earnings

Revision 13-2; Effective April 1, 2013

TANF and TP 08

Exclude the earnings of a TANF recipient's new spouse for six months, beginning the month after the date of the marriage if the total gross income of the budget group does not exceed 200% FPIL for the family size. This applies to both ceremonial and common law marriages.

Include in the budget group:

  • the caretaker or payee of the TANF-certified group;
  • the new spouse of the TANF caretaker or payee;
  • each dependent of the TANF caretaker or payee and the new spouse who meets the TANF age and relationship requirement and lives in the household; and
  • anyone who would be a required member if not disqualified or ineligible such as an SSI recipient or ineligible alien.

If the household fails to provide verification of the marriage, do not allow the income exclusion. After six months, count the amounts previously excluded.

A—1370  Verification Requirements

Revision 13-2; Effective April 1, 2013

All Programs

  • Verify all countable income at initial application, redetermination, and when a household reports a change. Exception: Do not verify income if the amount reported makes the household ineligible.

    For both earned and unearned income verification, do not require the household to provide verification of any pay amount that is older than two months before the interview date.

    Related Policy
    Verification and Documentation, C-900

  • Verify that a child meets the criteria listed in A-1323.1, Children's Earned Income, before exempting the child's earned income.
  • Verify interest income at periodic redetermination if from a new source or the amount has changed more than $50. Otherwise, accept the individual's self-declaration of the amount.
  • Verify tip income not included on an individual's wage statement by having the individual provide a signed and dated statement.
  • Verify all loans or contributions (cash or vendor payments) to determine the countable amount.
  • Verify whether the individual received vacation pay before or after termination. If after termination, verify whether the individual received vacation pay in a lump-sum or multiple checks.
  • If all attempts to verify income are unsuccessful because the payer fails or refuses to give information and no other proof can be found, use the best available information to determine the budget amount.
  • Verification used for SNAP or TANF in a TIERS EDG is acceptable for the other program, unless it is inconsistent with other information or is otherwise questionable. Verification used for Medicaid can be used for SNAP or TANF unless policy specifically says otherwise for a specific type of verification. Verification used for SNAP or TANF also can be used for Medicaid unless policy specifically says otherwise for a specific type of verification.
  • For strikers, contact union and company officials to:
    • find out the probable length of the strike; and
    • verify wages from that company, the striker's benefits and help from the union.
  • For self-employment, see A-1323.4.4, Determining the Amount of Self-Employment Income.
  • For terminated self-employment, use a collateral source as verification. Use an individual's statement only if a collateral source is not available. Refer to C-940, Documentation, for requirements when an alternate method is used rather than a preferred source.

TANF and SNAP

Take the following steps to obtain income information on employable household members with no prior certification history, or who have had a month or more break in certification or when adding a new member.

Step If yes If no
1. For the month of application or two months before, did any household member have any earned or unearned income that terminated? Verify and document the:
  • source,
  • final gross amount and date received,
  • reason terminated, and
  • termination date. Go to Step 2.
Go to Step 2.
2. Is the household claiming no income? If claim is questionable, follow policy in A-1700, Management, or verify per C-920, Questionable Information. STOP.

TANF and TP 08

Verify the date of marriage between a TANF recipient and the new spouse. Use this date to determine the six-month period in which the new spouse's earnings can be excluded as income.

TANF and TP 08

To establish eligibility for TP 07, verify the:

  • increase in gross earnings (or the primary wage earner's increased hours in TANF-SP); and
  • date the earnings/hours increased.

If verification is not readily available, accept the individual's statement, unless questionable.

If the household provides earnings information sufficient to determine ineligibility for TANF, but does not provide verification of the earnings, transfer the household members to TP 07 if they meet the eligibility requirements in A-842, TP 07 Transitional Medicaid.

TANF and Medicaid

If a person at application claims to be disabled or is caring for a child with disabilities, at first redetermination, verify that an application for RSDI/SSI has been made to the Social Security Administration.

SNAP

  • Process a change based on best available information if:
    • an increase in earnings decreases benefits;
    • the individual fails to provide information; and
    • the advisor can compute benefits base on the information provided.
  • Accept an individual's statement that the individual does or does not have a sponsor, unless sponsor status is questionable.

    If sponsor status is questionable, give the household two options:

    • the aliens may contact the USCIS and secure a G-641, Application for Verification of Information from Immigration and Naturalization Service Records, to verify sponsor status; or
    • the household may participate without the alien member.
  • Verify a disqualified person's income the same as any other member.
  • Contact union and company officials to find out the probable length of the strike and to verify wages from the struck company, striker's benefits, or other help from the union.

    Do not use the services of people or organizations involved in a strike or lock-out to interview applicants participating in the strike or lock-out. HHSC does not give these people or organizations access to Lone Star cards, PIN packets, or other documents, nor does it use the facilities of these people or organizations in certifying strikers.

  • Verify if any income made available to the household by an absent military person includes combat pay and verify the combat zone to which the person is deployed. Note: The military person’s leave and earning statement (LES) is often sent directly to the family or can be mailed to the family back home by the deployed military person. The military person’s LES can be used to verify the amount of combat pay if any is being received, and can also be used to verify deployment to a designated combat zone.

    Deployment to a combat zone can also be verified by requesting that the household provide the orders issued to the military person, or the advisor can contact the financial office at the local base.

  • Verify migrant income through sources such as Employment Services, Farm Labor bureaus, Rural Manpower Development, Farmer's Cooperative Service, growers' associations, Migrants' Service organizations, county agents, and individual growers and crew chiefs.

    If the household states that the migrant workers work for various growers or crew chiefs, provide the household a calendar form with space for recording each day's income and hours worked. The household should obtain the grower or crew chief's signature for validation and present the form at the next interview.

  • Do not request additional income verification when reactivating a SNAP EDG at redetermination denied for failure to provide information. Accept the original income verification the individual provided at the interview date, unless the household indicates a change in income.
  • For Streamlined Reporting (SR) households, accept the individual's statement as to whether the household exceeded the income limit during the original SR certification. If verification of current earnings shows that household income does not exceed 130% FPIL and there is no indication that the household exceeded 130% FPIL during the original SR certification period, it is not necessary to verify all income between the original SR certification period and the current certification.
  • If the individual began employment during the original SR certification period and reports it at the SR redetermination, verify the start date of the job. Do not verify all actual income from the start date. If the household's current income exceeds 130% FPIL, ask the individual to estimate the household's monthly income for the previous months. If the individual's estimate of the income exceeds 130% FPIL, accept the individual's statement and submit an overpayment referral. Estimate the amount of the overpayment and the overpayment date following policy in B-730, How to File an Overpayment Referral. OIG verifies all actual income and recalculates the overpayment.
  • If a member of the SR household has earned or unearned income that terminates during the certification, verify the last terminated income at the next redetermination.
  • If a member of the SR household changes jobs several times during the certification period, at redetermination verify termination of the last job and verify termination of the job the member had at the beginning of the previous SR certification period.

Related Policy
Required Verification for SNAP, C-912

TP 40

After certification, do not deny a TP 40 EDG for failure to provide income verification unless that verification was postponed at certification.

A—1371  Verification Sources

Revision 13-3; Effective July 1, 2013

All Programs except Children's Medicaid

Application for SSI/RSDI

  • Receipt from the Social Security Administration (SSA)
  • Wire Third-Party Query (WTPY)/State Online Query (SOLQ)

Child Support

  • C-820, Data Broker; C-825.14.1, OAG Child Support Data; C-832, Office of the Attorney General (OAG) Inquiry; C-833, TXCSES Web Child Support Portal Inquiry
  • Check or copy of check
  • County clerk records
  • Cancelled checks (three months if possible)
  • Wage withholding statements
  • Withholding statements from unemployment compensation
  • Written statement from parent providing support
  • Current court records such as court order, court support agreement, or divorce or separation papers

Contributions

  • Statement from person or agency providing the money or making payment for the individual
  • Contribution check or copy of check
  • Cancelled check of person making contribution

Earned Income

  • TALX – The Work Number System
  • Obtain Form H1028, Employment Verification (Medicaid Buy-In for Children), completed by the employer. Ensure that all items are completed and the information is consistent. Resolve any discrepancies
  • View at least two pay amounts in the time period beginning 45 days before the file date through the interview date (or the date the EDG is being processed if an interview is not required). Verify and document any breaks in pay periods. Do not use pay stubs as the only source of verification if the individual:
    • began employment in the application or interview month;
    • reported new employment after certification;
    • terminated employment in the application month; or
    • terminated employment in the two months before application (TANF and SNAP only)
  • Contact the employer
  • TWC wage records, see A-1355.2, How to Use Texas Workforce Commission (TWC) Quarterly Wage Information to Budget Earned Income
  • Use Form H2583, Choices Information Transmittal, if the form is complete and indicates the information was verified with the employer

Educational Grants, Scholarships or Loans

  • Statement, letter or records from:
    • schools;
    • organizations, clubs or agencies providing benefits; and
    • Veterans Affairs for a veteran's educational benefits.

Other Income

  • Check or copy of check
  • Statement from bank paying dividends and interest (self-declaration on periodic reviews and timely recertifications)
  • Statement from company or union providing pensions or union benefits
  • Form H1050, Check Verification

Other Government Benefits

  • Current award notice, letter or official written statement
  • Check or copy of check
  • Agency contract/record
  • Department of Family and Protective Services advisor/representative statement

RSDI

  • Check or copy of check
  • Current award notice, letter or statement from the SSA
  • WTPY/SOLQ
  • Direct deposit slip
  • Computer inquiry to Bendex file, if it is consistent with the individual's statement
  • Form H1050
  • SSA, Form 1610, Public Assistance Agency Information Request (if no other source is readily available)

Self-employment

  • Previous year’s Internal Revenue Service (IRS) tax return or business records, for self-employment income received less often than monthly
  • Most recent business records and receipts
  • Form H1049, Client's Statement of Self-Employment Income, completed and signed by the individual

    Note: Use Form H1049 alone only if collateral contacts or documentary information cannot otherwise verify the income and expenses.

  • Statement of estimated earnings
  • Tax Guide for Small Business
  • Receipts for goods/services provided

SSI

  • Check or copy of check
  • Current award notice, letter or written statement from the SSA
  • Computer inquiry to SDX file (this source also provides sufficient proof of other types of income available to an SSI recipient)
  • Direct deposit slip
  • WTPY/SOLQ

Unemployment Compensation

  • Check or copy of check
  • Current award notice, letter or statement from TWC

    Note: Other forms of verification must be used in conjunction with Form B-11, Benefits Claim Determination.

  • Former employer
  • TWC inquiry
  • Statement from TWC verifying the primary wage earner's application for unemployment insurance benefits

Veterans Benefits

  • View or obtain a copy of a current award notice, letter or statement from VA or DFAS-CL
  • Contact with a VA representative at 1-800-827-1000
  • Contact with a DFAS-CL representative at 1-800-321-1080
  • Form H1240, Request for Information from Bureau of Veterans Affair and Client's Authorization

Workers’ Compensation

  • Current award notice letter or statement from:
    • claims adjuster
    • attorney
    • insurance company
  • Check or copy of check

Children's Medicaid

Accept a copy of any one or more of the following:

  • Paycheck stub issued in the last 60 days
  • Most recent tax return
  • Most recent Social Security statement or check
  • Most recent child support check
  • Proof of self-employment
  • Letter from an employer verifying current income and frequency of payment
  • Most recent proof of other income received
  • TWC wage records, see A-1355.2, How to Use Texas Workforce Commission (TWC) Quarterly Wage Information to Budget Earned Income
  • TALX – The Work Number System
  • C-820, Data Broker; C-825.14.1, OAG Child Support Data; C-832, OAG Inquiry; C-833, TXCSES Web Child Support Portal Inquiry

TANF and TP 08

Ceremonial Marriage

  • Marriage license or certificate
  • Church records
  • Statement from clergy
  • Family Bible records

Common Law Marriage

  • Declaration of Informal Marriage filed with the county clerk
  • Sworn statement signed by both spouses
  • Form H1057, Declaration of Informal Marriage

Related Policy
Questionable Information, C-920
Providing Verification, C-930

A—1380  Documentation Requirements

Revision 13-2; Effective April 1, 2013

All Programs

Exempt Income – Document:

  • why it is exempt; and
  • the name and address or telephone number of the income source.

Terminated Income – Document:

  • any income that terminated in the application month; and
  • vacation pay received before or after termination, including the dates received.

Income – Document the:

  • date of each income statement or stub used;
  • date income is actually received;
  • date income is anticipated using factors such as distance it has to travel through the mail, direct deposit/electronic transfers, weekends and holidays;
  • name and address or telephone number of the income source;
  • gross amount of income;
  • frequency of receipt (such as weekly, every two weeks, semimonthly, monthly); and
  • calculations used.

    Notes:

  • If other means are used to verify earned income, document information comparable to that listed above. For advances, document the payback amount and gross amount used in the budget, according to policy in A-1323.5, Wages, Salaries, Commissions and Tips.
  • If using TWC Quarterly wage records, advisors must complete the appropriate screens in TIERS.

Fluctuating Income – Document the reason:

  • income fluctuates; and
  • why a pay period was included or excluded in the projection. If a pay period is not representative of future earnings, document the reason it is not representative.

Income Computations – Document verification and computation of household income:

  • at the initial application;
  • when a change is reported; and
  • at each subsequent application/redetermination.

    Note: Record all sources, amounts, dates and computations.

Other Income – Document the method used to verify income other than earned and TANF. This documentation includes the:

  • type of income;
  • check or document seen;
  • date on the check or document;
  • amount recorded on the check or document;
  • date the income was verified; and
  • computation performed to determine the total income.

Self-Employment – Document:

  • the method for averaging income;
  • deductions for the costs of doing business;
  • the number of hours engaged in the enterprise; and
  • other factors used to determine the amount of income.

    Notes:

    • Document the reason if Form H1049, Client's Statement of Self-Employment Income, is the only source of verification.
    • Provided the income is entered as self-employment income in TIERS, a statement informing the self-employed individual to keep self-employment records and receipts for verification purposes for future recertifications will appear on the TF0001, Notice of Case Action. Otherwise, add the statement to the individual's notice and document that the self-employed person was given this information in writing.

Alien Sponsor's Income – Document that an indigent alien, exempt from deeming requirements, was informed that state office is required to report the indigent alien’s sponsor to the OAG. If the alien does not want this report sent to OAG, document that the alien chose to have the sponsor's income deemed.

TANF and SNAP

Terminated Income – Document any income that terminated in the two months before the application month, including:

  • source;
  • gross amount of final check and date received;
  • reason for termination; and
  • date of termination.

TANF and Medical Programs except Children's Medicaid

Document the household's plan to pursue income to which it is entitled, including time allowed to pursue the income.

Document an individual no longer claims to be disabled or caring for a child with disabilitlies, when they reapply after they were denied for failure to follow the agreed plan to apply for SSI/RSDI.

TANF and TP 08

Document the months during the six-month period in which the earnings of a new spouse of a TANF recipient will be excluded.

TANF

Document the individual's decision not to apply for SSI, when the individual is not required to pursue it because the individual is physically or mentally unable to complete the application process and the Health and Human Services Commission fails to, or is unable to, provide assistance needed to complete the SSI application process.

Document an individual’s decision to no longer claim a Choices exemption for disability or caring for a child with disabilities when the individual has failed, without good cause, to apply for SSI/RSDI.

Related Policy
Documentation, C-940
The Texas Works Documentation Guide