Poverty Law 1, MFIP-S Income Lecture Adjunct Professor Monica Bogucki Poverty Law 1, MFIP-S Income Lecture Adjunct Professor Monica Bogucki Copyright 2017 Monica Bogucki, BSW, JD

Is the income included or excluded? General Rule is income is included unless it is specifically excluded.

Three Basic Types of Income Earned Income, Minn. Stat. 256P.01, subd.3, 256J.08, subd. 6 Unearned Income ,Minn. Stat. 256P.06, subd 3(2) Minn. Stat. 256J.08, subd. 86, Minn. Stat. 256P.01, subd 5 In-kind income, Minn. Stat. 256J.08, subd. 49, Minn. Stat. 256P.01, subd. 4

Earned Income Cash In-kind income earned through employment Minn. Stat. 256P.01, subd. 3

Unearned Income Unearned income includes: Interest, dividends Capital gains from sale of real property Rent, contract for deed payments(in excess of principal and interest) Income from trusts, excludes special needs and supplemental needs trusts Interest income on loans Cash prizes Unemployment insurance Retirement, survivors and disability insurance (RSDI)

Unearned income continued Retirement benefits Cash assistance through: General Assistance program, Child care assistance program, MFIP, Group Residential Housing Tribal payments Income from rehabilitation programs that meet or exceed minimum wage Income from U.S. armed forces Child support-child case assistance, general assistance, GRH Amount of child support-MFIP- Exclude $100 for one child Exclude $200 for two more children Spousal support.

In-Kind income In-kind income Obtained through employment activities. Counted as income Obtained through other sources-NOT counted as income Minn. Stat. 256J.21, subd 2(13) Example-non-profit pays landlord directly for tenant’s past due rent

What is prospective budgeting? What is retrospective budgeting?

What is retrospective budgeting? What you earn in one month affects your grant two months later. If someone earns $2,000 bonus from January. If the family’s MFIP grant is usually $437.00. The family will not get a MFIP grant in March. Minn. Stat. 256J.33 subd. 3

Deeming of income, Minn. Stat. 256J.37, subd 1, subd 1b, subd. 2 Count income of someone who is financially responsible but may not be living in the household Examples: Affidavit of support for immigration purposes

Excluded Income The following assistance unit members are exempt from having their earned income count towards the income of the assistance unit. Children under six years old. Caregivers under 20 years of age enrolled at least half-time in school Minors enrolled in school full-time Minn. Stat. 256P.02 subd. 2

Client’s Duty to Report Income and other changes The client must report any employment changes to his/her job counselor within 3 days. Minn. Stat. 256J.55 subd. 2 Must report changes within 10 days Minn. Stat. 256J.30 subd. 9, Minn. Stat. 256P et. seq. Household Report Forms, Recertification forms See State of Minnesota Department of Human Services website for forms-available in multiple languages.

Participant has a duty to provide necessary verification Participant has a duty to verify necessary verification. Minn. Stat. 256P.04, 256J.32 Agency will accept personal statement for verification Some items to verified: Income Assets Assistance unit members and relationships to each other Change in household composition Change in work status……….

Ellie is a foster parent of two children. She receives $1200 Ellie is a foster parent of two children. She receives $1200.00 per month for the care of these two foster children. Ellie is also the single parent of two minor children. She wants to know if the foster payments will reduce her MFIP benefits?

Sallie started working for a company that pays her for mileage and parking expenses incurred as part of her work. Sally is worried this will reduce her MFIP benefits. Will this reduce her MFIP benefits?

Sam has a 10 year-old-son who is receiving SSI benefits $ 735 Sam has a 10 year-old-son who is receiving SSI benefits $ 735.00 per month. Sam also has a 12-year-old son. Sam will be applying for MFIP benefits. Sam wants to know how the SSI benefits will impact his MFIP application?

Sam and his two sons are living in Housing and Urban Development subsidized housing. How will this affect his MFIP benefits? Minn. Stat. 256J.37 subd. 3A(B)(A)

Sam is not receiving SSI benefits Sam is not receiving SSI benefits. He and his two sons are receiving MFIP benefits. They live in Housing and Urban Development subsidized housing. How will this affect their MFIP benefits? Minn. Stat. 256J.37 subd. 3a

Molly is on MFIP benefits Molly is on MFIP benefits. Molly needed extra money this month to go to her father’s funeral in Indiana. She sold her stereo system for $500.00. She wants to know if this will reduce her MFIP benefits.

AmeriCorps income Amy is a single parent of one child. She just finished college. She is a full-time participant in the AmeriCorps program. She will be teaching in an inner-city high school in Minneapolis. She is worried about finances. She will get cash payments from AmeriCorps is $ 12,000 per year. Can she get MFIP benefits?

Jenny just received a favorable decision in a housing case Jenny just received a favorable decision in a housing case. Her award is $20,000. She is debating on whether to get this in cash or have the landlord buy her a $ 20,000 manufactured home. What are the advantages and disadvantages of each option? How would this impact her grant?

John and Betsy filed a rent escrow action against their landlord and have received the following damages from the landlord. They want to know how this will affect their MFIP grant. $100.00 punitive damages $500.00 rent rebate $500.00 moving expenses- landlord will pay the moving company directly

LEGAL AVAILABILITY If the individual has legal access to income, then this income counts as income for purposes of MFIP eligibility. What happens if the income is legally unavailable? What are some examples of legally unavailable income? Minn. Stat. 256J.21 subd. 1

Earned Income Tax Credit Ann filed her income taxes and will receive $1,000 in earned income tax credit. How will this impact her MFIP grant?

Minn. Renter’s refund Ann is filing for her Minnesota Renter’s Refund. She will receive $600.00 in a renter’s refund. How will this impact her MFIP benefits?

MICHELLE’S PARENTS ARE WILLING TO LOAN HER $2500 MICHELLE’S PARENTS ARE WILLING TO LOAN HER $2500.00 TO HELP HER FINISH SCHOOL. MICHELLE IS WORRIED THIS WILL REDUCE HER MFIP GRANT. PLEASE ADVISE HER?