Title 16
16000 Federal Poverty Level Related Programs
Countable Income is earned or unearned income from which certain disregards (if applicable) have been deducted. Determine eligibility prospectively based on the best estimate of income and circumstances that will exist in the month for which the eligibility determination is being made. Changes in income are budgeted prospectively after verifying the information. Changes include, but are not limited to, changes in hourly rates, new jobs, changes from part to full time status (or vice versa), or loss of jobs. Do not budget prospectively changes in income due solely to things such as an extra pay cycle, bonus pay, and overtime or holiday pay. Convert income per time period to a monthly income figure by using the following conversion factors:
INCOME PERIOD |
CONVERSION FACTOR |
||
Weekly |
4.33 |
||
Bi-weekly |
2.16 |
||
Semi-monthly |
2 |
Accept the individual's declaration on management when there is no reported income.
Resources are not counted in the poverty level related programs.
16230.1 Earned Income
Earned income is the money an individual receives in return for work he or she performs. Earned income includes wages, salaries, tips, commissions, severance pay, self employment income, farming, roomer/boarder income.
16230.1.1 Wages
Wages are gross earnings paid to the employee before deductions for taxes, FICA, insurance, etc. Count gross earnings for the eligibility determination. Sick pay or vacation pay is considered a wage as long as it is paid as a wage. If sick pay is paid through an insurance company as disability pay, it is considered unearned income.
Obtain pay stubs necessary to determine monthly income. Use the actual pay date and not the week ending date. If the client does not have all of the pay stubs for the month of application or redetermination, use the stubs available to calculate average pay. Use the conversion factor to compute an average monthly income. If the individual expects a change in circumstances, such as an increase or a reduction in hours, verify with the employer the anticipated change in wages.
16230.1.2 Self-Employment Income
A self-employment standard deduction is used to calculate self-employment income. The self-employment standard deduction is considered the cost to produce income. The self-employment standard deduction is a percentage that is determined annually and announced in the Cost-of-Living Adjustment (COLA) Administrative Notice each October.
To calculate self-employment income, use the gross proceeds and subtract the self- employment standard deduction. The result is the amount included in the individual’s gross income. Standard earned income deductions are then applied to the individual’s gross income.
To receive the self-employment standard deduction, the individual must provide verification that costs are incurred to produce the self-employment income. Verification can include, but is not limited to, tax records, ledgers, business records, receipts, check receipts, and business statements. The individual does not have to verify all business costs to receive the standard deduction.
If the individual does not claim or verify any costs to produce the self-employment income, the self-employment standard deduction will not be applied.
When the application of the standard deduction results in a finding of ineligibility, the applicant or recipient will be given an opportunity to show that actual self-employment expenses exceed the standard deduction. If the actual expenses exceed the standard deduction, they will be used to determine net income from self-employment.
Actual self-employment expenses must be directly related to producing the goods or services. Actual self-employment expenses for the eligibility determination do not include all expenses that are allowed by the Internal Revenue Service. Actual self-employment expenses that are not allowed for the eligibility determination include depreciation, personal and entertainment expenses, personal transportation, purchase of capital equipment, payments on the principal of loans for capital assets or durable goods, and rent or mortgage payments when the business is in the home.
9 DE Reg. 564 (10/01/05)
10 DE Reg. 143 (07/01/06)
12 DE Reg. 1320 (04/01/09)
16230.1.3 Roomer/Boarder Income
Gross earned income from a roomer or boarder is defined as rent paid minus operating expenses. A roomer is a person who rents living space in the home. A boarder is a person who purchases meals provided in the home, but does not live there. A roomer and boarder is a person who pays for both a room and meals. The following are the monthly allowable operating expenses:
Roomers only $10.00 per person
Boarders only $30.00 per person
Roomer and Boarders $46.00 per person
16230.1.4 Deductions From Earned Income
• $90 earned income deduction per month per earner
• actual monthly dependent care expenses for the care of each dependent child or incapacitated adult living in the same home. Monthly dependent care expenses cannot exceed $175 for each dependent child age two and older and each incapacitated adult and cannot exceed $200 for each dependent child under age two.
• There is a special income disregard for pregnant teens. Exclude one-half of the gross parental income (includes earned and unearned income) in the eligibility determination for the pregnant teen.
16230.2 Unearned Income
Unearned income is income received without performing work-related activity. Unearned income is counted as paid without application of any disregards. There is an exception for child support payments and pregnant teen disregard as listed below. Unearned income includes but is not limited to:
• Annuities
• Black Lung benefits
• Cash contributions from organizations, churches, friends, relatives, or social agencies
• Child support payments - deduct the first $50 per month of child support received for each child
• One-half of the gross parental income for minor pregnant teen
• Insurance benefits
• Interest, dividends, and income from capital investments
• Lump sum payments, including insurance settlements
• Military allotments
• Payments from estates, trust funds, or other personal property which cannot be converted into cash because of legal provisions
• Pensions
• Railroad Retirement
• Social Security (use gross amounts except when an overpayment is being deducted by the SSA)
• Unemployment Compensation
• Veterans' Benefits
• Workman's Compensation
16230.3 Excluded Income
• Earned Income Tax Credits (EITC)
• First $50 per month of child support received for each child
• Governmental (federal, state, or local) rent and housing subsidies, including payments made directly to the applicant/recipient for housing or utility costs, e.g., HUD utility allowances
• Income owned by or received for the benefit of the siblings
• Financial Assistance received from school grants, scholarships, vocational rehabilitation payments, Job Training Partnership Act payments, educational loans, and other loans that are expected to be repaid. Also exclude other financial assistance received that is intended for books, tuition, or other self-sufficiency expenses.
• One half of the gross parental income for minor pregnant teens
• Payments made by a third party directly to landlords or other vendors
• SSI benefits
• Earned income of a minor child regardless of student status
• Earned income of an 18 year old or emancipated minor who is a full time student or a part time student but not a full time employee attending a school, college, university, or a course of vocational or technical training
See the TANF Financial Policy for more income exclusions.
