1. Expanding Foundations
Income

2. Goal and Objectives
Goal: Participants will accurately evaluate income for Adult Financial customers
Objectives:
Determine whether income is earned, unearned and in-kind and where to enter each of those types into CBMS
Recall what types of income are exempt for Adult Financial programs and how long the exemption lasts
Identify when to refer customers to SSA to apply for Title II or Title XVI benefits
Calculate income disregards and identify when and how to use them for each Adult Financial program
Determine ISM amounts and complete data entry of ISMs into CBMS
Calculate income deeming for non-recipient spouses

3. The Basics
In order to receive Adult Financial, the customer must have income below the program’s income limit (grant standard) at initial application
Total countable income is deducted from the grant amount to determine the actual grant payment
Some income is countable; some is exempt
Certain disregards, or deductions, are applied

4. The Basics
All income is countable in the month it is received or legally becomes available
Some exceptions apply
Four types of income are considered:
Earned
In-kind Earned
Unearned
In-kind Unearned

5. Potential Income
“Potential Income” means a benefit or payment the customer, spouse of a customer or sponsor(s) of a customer may be entitled to and could secure

6. Customers must try to get all of the income available to them
Reasonable Effort
Customers must try to get all of the income available to them
If the customer fails/refuses to get their available income, it will be counted unless there is good cause
If the customer cannot show good cause, and the amount of available income cannot be determined, the case should be terminated or denied

7. Definition
“Earned Income” means payment in cash or in-kind received by a customer or spouse of a customer for services performed as an employee or as a result of the customer or spouse being engaged in Self-Employment

8. Earned Income

9. Self-Employment Profit-making activities:
Money from sales of self-employment capital goods, services, and property

10. Self-Employment Deduct the cost of doing business:
Business expenses (rent for business premises, wholesale cost of merchandise, utilities, interest, taxes, labor, upkeep of equipment, etc.)
Do Not include depreciation of equipment, cost of or payment on principal of loans for capital assets or durable goods, or personal expenses

11. Self-Employment Special Cases: Farm income Rental income
customer must actively manage property at least 20 hours per week for it to be considered self-employment
Room and Board
Licensed child care providers
Speak to a lead worker or supervisor if you encounter one of these situations

12. Donated Work Hours
These are considered countable earned income when all of the following apply:
Regular and scheduled
More than 5 hours/week
Is a necessary service
Would require a staff member to be hired if not completed by the customer

13. Value is calculated by taking the greater of:
Donated Work Hours
Value is calculated by taking the greater of:
The going rate in the community for the same type or similar work, OR
The current minimum wage

14. Volunteerism
Volunteer work for the betterment of the community that averages less than 30 hours per week is not considered as income

15. Income Quiz Game! Q
& A

16. Unearned Income Monetary benefits that are not earned
SSA benefits (SSDI, SSI, Survivor’s, and SSA Retirement)
Pension and retirement funds
Veteran’s compensation and military retirement pension

17. Unearned Income Unemployment compensation
Worker’s compensation payments
Interest and dividends
Gifts and Prizes
Oil or mineral royalties or lease bonuses

18. Unearned Income Rental income Trusts Union strike benefits
Railroad retirement payments

19. Exempt Income
The following types of income are not countable for Adult Financial:
Income tax refunds
Home energy assistance
Emergency or general assistance
VA Aid and Attendance used for medical expenses

20. Exempt Income Educational grants and loans
Work study income that is need-based
Wages received by customers who are at least 55 years old under the SCSEP
Reverse mortgage loan payments

21. INCOME SCRAMBLE!

22. Disregards Only apply to OAP and AND-CS customers
Will not be applied if the customer’s total countable income equals or exceeds the grant standard at application
Will decrease the customer’s countable income when calculating the grant amount
Are applied to both earned and unearned income

23. Disregards
Countable earned income:
Gross earned income
$65 2
Total

24. Disregards Countable Unearned Income:
Gross unearned income other than SSI
$20
Total countable unearned incone
Countable Unearned Income:

25. Counting Customer Income
AND-SO income is counted differently than other Adult Financial programs
Earned and unearned income is counted dollar for dollar with NO disregards for the customer

26. What is an ISM?
ISM stands for In-Kind Support and Maintenance
It is considered in-kind earned or unearned income to customers
ISMs can occur when a customer is NOT paying his or her fair share of housing costs
There is a value to the free part of the shelter the customer is receiving
It may be considered in-kind unearned income to the customer for Adult Financial

27. ISM In-kind Support Maintenance
Customers receiving SSI and being charged an ISM by the Social Security Administration (SSA) shall be charged a matching ISM for Adult Financial
If the customer is paying their fair share of shelter costs, refer them back to SSA. When SSA removes all or part of their ISM, remove all or part of the ISM in CBMS

28. How Much is an ISM?
The maximum amount of an Adult Financial ISM is determined by taking the current SSI grant standard and multiplying it by 33.33%, and then adding $20.
That sum is rounded to the nearest whole dollar
For 2018, the maximum ISM is $270.00

29. ISM Calculation
$750
.3333
$249.97
$20
$269.97
$269.97
$270

30. ISM Provisions Do Not Apply to Persons
Who are living in and own their primary residence 
Who receive subsidized housing
Who are homeless
Who are paying their fair share of shelter costs which are market value or greater, even if the fair share is less than the current maximum ISM amount
Who are paying shelter costs in an amount equal to or greater than the current maximum ISM amount whether or not the costs are fair share or fair market value

31. Fair Share and Fair Market Value
Fair share is determined by totaling the rent and utility costs for the residence and dividing it by the number of people living in the household (including children)

32. Fair Share and Fair Market Value
Market value is the amount the landlord or property manager would charge to rent the residence on the open market
This amount is necessary to calculate fair share
You may need to talk to the landlord to determine fair market value

33. Verification of Fair Share
Verification of shelter costs is required when determining Fair Share.
Collateral Contacts
Rent Receipts
Leases/Landlord Statement
Third Party Source (internet)
Don’t forget utilities
Phone expenses are not considered in determining fair share

34. Verification of Shelter Expenses
If a customer reports paying shelter costs but doesn’t provide verification, CBMS will generate an information VCL.
Customer will have days to provide verification of shelter costs
This VCL will not pend the case or deny automatically if verification is not received

35. If Verification is not Received
If a customer fails to provide verification of shelter costs the full ISM amount should be applied.
The full ISM amount would be entered as of the 1st day of the month following the VCL due date.
If verification is later provided, it should be treated as a reported change.

36. Apply the Full ISM When…
The customer is NOT paying any shelter costs and all shelter costs are supplied in full.
The customer receives an educational loan or grant that provides shelter in full.
The customer fails to provide verification of their declared shelter expenses.

37. Determining an ISM Amount
Step One:

38. Determining an ISM Amount
Step Two:

39. Determining an ISM Amount
Step Three:

40. Switching AND-SO to AND-CS
Exercise to see how ISMs count in Wrap Up
In most cases SSI will interface
This is for training purposes only

41. Deemed Income
The income of spouses and non-citizen sponsors is countable towards the applicant. We call this type of income “deemed”
Exception:
If the spouse is on ANY KIND of Financial Assistance from the Department of Human Services or is on Medicaid, their income DOES NOT COUNT

42. Deeming of Spousal Income
The deeming of income from the Non-Recipient Spouse varies between Adult Financial Programs
AND-SO
AND-CS
OAP

43. Information to Gather Spouse’s income from all sources
For OAP, get verification of:
Income of any dependent children in the home
Medical expenses

44. Deeming of Spousal Income OAP
1: On Medicaid or Cash Assistance?
2: Earned and Unearned Income
3: Verify Income of Dependent Children
4: Verify Medical Expenses