Tenn. Comp. R. & Regs. 1240-01-04-.15

Current through October 22, 2024

Section 1240-01-04-.15 - PAYMENTS/BENEFITS EXCLUDED IN ELIGIBILITY DETERMINATION

Certain payments and benefits which might ordinarily be considered income are excluded under federal law/regulations from consideration as income for eligibility purposes. The following sections lists such exclusions.

(1) Food Stamps/AFDC. The following exclusions apply in both programs unless otherwise indicated.

(a) Relocation Assistance Payments. Relocation payments received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

(b) Any funds distributed per capita to or held in trust for members of any Indian tribe under PL 92-254, PL 93-134 or PL 94-540.

(c) Payments received under the Alaska Native Claim Settlement Act ( PL 92-203, §21 a); Payments by the Indian Claims Commission to the Confederated Tribes and Bands of the Yakima Indian Nation or the Apache Tribe of the Mescalero Reservation ( PL 95-443). Payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their members received pursuant to the Main Indian Claims Settlement Act of 1980 ( PL 96-420, §5). Payments of relocation assistance to members of the Navajo and Hopi Indian Tribes ( PL 93-531).

(d) Receipts distributed to members of certain Indian tribes referred to in section (b), PL 94-114.

(e) Benefits received from programs under the Older Americans Act of 1965 as follows:

1. Food Stamps Only. Payments from the Senior Citizen Community Service Employment Programs (Title V).

2. Food Stamps/AFDC. Payments from the Nutrition Program for the Elderly (Title VII).

(f) The value of supplemental food assistance received under the Child Nutrition Act of 1966 (WIC) as amended and the special food service program for children under the National School Lunch Act as amended.

(g) Payments for supporting services and reimbursements of out-of-pocket expenses made to individual volunteers serving as health aides, senior companions or in SCORE or ACE and any other programs under Titles II and III pursuant to section 418 of PL 93-113.

(h) Payments Under the Domestic Volunteer Service Act of 1973.

1. Food Stamps Only.

(i) Payments to volunteers under Title I of the Domestic Volunteer Service Act of 1973 ( PL 93-113 as amended) will be excluded when the volunteers meet either of the following conditions:

(I) The individuals were receiving Food Stamps or AFDC at the time they joined the Title I program; or

(II) The individuals were receiving the Title I subsistence allowance prior to March 1, 1979. This exclusion will apply for the length of the volunteer contract in effect as of March 1, 1979.

(ii) Payments to volunteers under Title II of the Domestic Volunteer Service Act of 1973 ( PL 93-113 as amended) will be excluded.

2. AFDC Only. VISTA payments will be excluded when the amount is less than the minimum wage as determined by the Director of ACTION for all hours worked.

(i) Job Training Partnership Act (JTPA) Income.

1. Food Stamps Only

(i) JTPA On-the-Job Training Programs.

Earnings from JTPA on-the-job training programs are excluded only for individuals under age nineteen (19) who are under parental control of another adult household member.

(ii) Other JTPA Programs.

All income from other JTPA Programs, earned or unearned is excluded.

2. AFDC Only.

(i) JTPA Payments for Child Recipients.

(I) Earned (JTPA) income is excluded for child recipients up to 6 months in each calendar year. The payment is not counted at either the gross test step or in calculation of the grant. This provision does not apply to caretakers under 18.

(II) All unearned JTPA income payments are excluded for child recipients.

(ii) JTPA Payments for Recipients Other Than Child Recipients.

(I) Unearned payments are excluded at all steps of the budget calculation if paid for one of the following reasons:

Reimbursement for expenses. This cannot be for basic living expenses and must be specified as a reimbursement by the JTPA agency.

Assistance payments for needs other than the AFDC grant amount. This means the JTPA payment is meeting a basic need which the AFDC grant cannot cover due to our ratably reduced standards or because it was not covered in our needs study.

Incentive and training allowance for training purposes. The payments will be identified by the JTPA agency.

(II) Earned JTPA payments are counted as any other earnings and the appropriate disregards are applied.

(j) Experimental Housing. Allowance program payments made under Annual Contribution Contracts entered into prior to January 1, 1975 under §23 of the US Housing Act of 1973 as amended.

(k) Educational loans on which payment is deferred, grants, scholarships, fellowships, and veteran educational benefits are excluded to the following extent:

1. Food Stamps Only.

(i)Federal Educational Assistance Programs funded under Title IV of the Higher Education Act include, but are not limited to, the Pell Grant Program, the Supplemental Educational Opportunity Grant (SEOG) Program, the State Student Incentive Grant (SSIG) Program, the PLUS Program, the College Work Study Program, the National Direct Student Loan (NDSL) Program, and the Byrd Honor Scholarship Program. Exclude the following expenses from income received from these programs only for persons who are attending an institution of post secondary education at least half time:

tuition;

mandatory fees;

originator fees and insurance fees charged by financial institutions for educational loans.

Also exclude the following expenses from such educational funds, when the household provides information to document the amounts claimed. (Note: the claimed expenses may not exceed the amount of the grant or loan from which they are to be paid):

books and supplies;

materials;

equipment;

transportation; and miscellaneous personal expenses (not including room, board, and/or dependent care expenses).

(ii) Exclude the expenses listed below from other federal educational income (such as veterans' benefits or federal grants and loans that are not funded under Title IV of the Higher Education Act) only for institutions of post secondary education or schools at any level for the physically or mentally handicapped:

tuition;

mandatory fees;

origination fees and insurance fees charged by financial institutions for educational loans.

(iii) Exclude the expenses listed below from non-federal educational income (such as loans, grants, scholarships, and fellowships) only for institutions of post secondary education or schools at any level for the physically or mentally handicapped:

tuition;

mandatory fees;

origination fees and insurance fees charged by financial institutions for educational loans.

Also exclude non-federal educational funds for post secondary education that are earmarked by the grantor for educational expenses, such as:

books and supplies;

materials , equipment;

transportation; and miscellaneous personal expenses.

Do not exclude monies earmarked for normal living expenses, such as food eaten at home, clothing, and rent or mortgage.

(iv) After the excluded charges have been subtracted from loans, scholarships, etc., the remaining amount is considered unearned income. The income is prorated over the months of the school term it is intended to cover. If the total yearly amount is known at certification, then the yearly amount is divided by the number of months in the school year. If only one quarter or semester amount is known at the time of certification, the amount is prorated over the number of months in the quarter or semester.

(v) Tuition, mandatory fees, and other educational expenses paid from earnings, resources, or any sources other than educational income such as grants, deferred loans, etc., are not excluded.

(l) Youth Employment and Demonstration Act. Payments received from the Youth Incentive Entitlement Pilot Projects, the Youth Community Conservation and Improvement Projects, and Youth Employment Training Programs under Title IV of Comprehensive Training Act; Amendments of 1978 PL 95-524.

(m) Energy Assistance Payments.

1. Food Stamps Only: Payments or allowances made under any federal law for the purpose of energy assistance.

2. AFDC Only: Payments or allowances made by any federal, state, local agency or charitable organization to meet energy assistance needs.

(2) Food Stamps Only.

(a) Cash Items.

1. Earnings of Children. Earned income of a household member who is under 18 years of age is not counted when:

(i) that child is a student at least half-time in elementary or high school, or in classes to obtain a General Equivalency Diploma (GED); and

(ii) lives with a natural or adoptive parent or stepparent, or

(iii) is under the control of a household member other than a parent, or

(iv) is certified as a separate Food Stamp household but lives with a natural or adoptive parent or stepparent.

2. Costs of producing self-employment income. Allowable costs of producing self-employment income include, but are not limited to: (see 1240-01-04-.24)

(i) Identifiable costs of labor (salaries, employers share of SS, insurance, etc.)

(ii) Stock, raw materials, seed and fertilizer, feed for livestock

(iii) Rent and costs of building maintenance

(iv) Business telephone costs

3. Irregular Income. Any income which is received too infrequently or irregularly to be reasonably anticipated, as long as the amount does not exceed $30 in a three (3) month period, shall be excluded.

4. Loans. All loans, including loans from private individuals as well as commercial institutions, other than educational loans on which repayment is deferred, are excluded.

5. Income of Non-household members.

(i) The income of non-household members who have not been disqualified, including SSI recipients in cash-out states, students, roomers, boarders (who have not been requested to be considered household members by the household providing boarder services), and live in attendants shall not be considered available.

(ii) Monies Received for Third Parties. Monies received and used for the care and maintenance of a third party who is not an HH member. If the intended beneficiaries of a single payment are both HH and non-HH members, any identifiable portion of the payment intended and used for the care and maintenance of the non-HH member other than a legally responsible relative shall be excluded. If the non-HH member's portion cannot be readily identified, the payment shall be evenly prorated among intended beneficiaries and the exclusion applied to the non-HH member's pro rata share or the amount actually used for the non-HH member's care and maintenance, whichever is less.

6. Non-recurring Lump Sum Payments - Money received in the form of a nonrecurring lump sum payment, including but not limited to income tax refunds, rebates, or credits; retroactive lump sum Social Security, SSI, AFDC, railroad retirement pension or other payment; retroactive lump sum insurance settlements; or refunds of security deposits on rental property or utilities are not considered income. These payments shall be counted as resources in the month received, unless specifically excluded from consideration as a resource by other Federal laws.

7. Recoupments.

(i) Monies withheld by a provider from any income or returned to the provider by the recipient, in order to repay a prior overpayment are not counted except as provided in (ii) below.

(ii) Counted as income are any monies withheld from assistance payments by a federal, state, or local welfare program in order to repay an overpayment resulting from an intentional failure to comply with such program's requirements. The program must be means-tested and must distribute publicly funded benefits.

8. Reimbursements.

(i) Definition of Excluded Reimbursements. Reimbursement for past or future expenses other than normal living costs are excluded to the extent they do not exceed actual expenses and do not represent a gain or benefit to the HH. No portion of benefits provided under Title IV-A of the Social Security Act to the extent such benefit is attributed an adjustment for work related or child care expenses shall be considered excludable under this provision.

When a reimbursement, including a flat allowance, covers multiple expenses, each expense does not have to be separately identified as long as none of the reimbursements cover normal living expenses. Reimbursement for normal living expenses of the HH or legally responsible relative, such as rent or mortgage, personal clothing or food eaten at home, are a gain or benefit and therefore are not excluded. To be excluded these payments must be provided specifically for an identified expense, other than normal living expenses, and used for the purpose intended.

(I) Reserved for future use.

(II) Reimbursed for out of pocket expenses of volunteers incurred in the course of their work.

(III) Medical or dependent care reimbursements.

(IV) Non-federal reimbursements or allowances to students for specific education expenses, such as travel or books, or for miscellaneous personal expenses, but not allowances for room and board. Portions of a general grant, loan, or scholarship must be specifically earmarked by the grantor for education expenses or for miscellaneous personal expenses, rather than room and board, to be excluded as a reimbursement.

(ii) Definition of Non-Excluded Reimbursements. The amount by which a reimbursement exceeds the actual incurred expense shall be counted as income. However, reimbursements shall not be considered to exceed actual expenses unless the provider or the HH/AG indicates the amount is recessive. It will not be necessary to verify whether the amount is excessive, unless the HH/AG claims the amount is excessive.

9. Support payments - Support payments received by a household but transferred to the IV-agency.

10. Vendor Payments - Money payments that are not payable directly to a HH but paid to a third party for HH expenses are vendor payments and are excluded as follows:

(i) Definition and Examples of Normal Vendor Payments. A payment made on behalf of HH shall be considered a Vendor payment, whenever a person or organization outside of a HH uses its own funds to make a direct payment to either HH creditors or a person or organization providing goods or services to the household or aid group.

(ii) HUD Vendor Payments.

(I) Payments to Landlords. Rent or Mortgage payments paid to a landlord or mortgages by the Department of Housing and Urban Development or by State or local housing authorities are excluded as vendor payments.

(II) Payments Directly to Household. Payments in money that are not made to a third party, but are made directly to an HH for rent or utilities are counted as income. This includes payments made directly to the household under section 8 of the US Housing Act.

(iii) Exception to Vendor Payment Exclusion Rule - Legally Obligated Payments. Monies that are legally obligated and otherwise payable to the household but which are diverted by the provider of the payment to a third party for a household expense are counted as income and not excluded vendor payments. The distinction is whether the person or organization making the payment on behalf of a household is using funds that otherwise would have to be paid to the household. These funds include any wages earned by a household member, support and alimony payments which legally must be paid to a household, educational loans on which payment is deferred, grants, scholarships, etc., which are paid to a third party for living expenses. If any employer, agency, former spouse or other person makes payments for household expenses to a third party from funds that are not owed to the household, these payments are excluded as vendor payments.

(b) Non-cash item. Any gain or benefit not in the form of money payable directly to an HH are excluded, such as:

1. Goods and services provided directly to an HH.

2. Goods and services provided for an HH by a person/agency/organization who is not an HH/AG member by payment directly to the provider of the goods/services.

(3) AFDC Only - Non-Income - Certain benefits and payments are not defined as income for AFDC eligibility purposes as follows:

(a) Cash items.

1. Business Costs of producing self employment income such as but not limited to:

(i) Wages, salaries, benefits paid to/for employees

(ii) Inventories and supplies

(iii) Seeds, fertilizers, pesticides, herbicides, etc.

(iv) Utilities at place of business

2. Clothing Allowance for Disabled Veterans - The clothing allowance for disabled veterans for additional clothing needs resulting from the use of prosthetic or orthopedic devices.

3. That portion of educational loans, grants, scholarships, fellowships, benefits, etc., which are direct costs of education borne by the student beneficiary or which are not within the direct control of the student beneficiary.

4. Foster Care Board Payments - Foster care board payments made to foster parents for the care of a foster child by DHS and/or other child placing agencies are not income to the foster parents. Any service fee paid to the foster parents is income.

5. Legally obligated payments otherwise payable to an aid group which are diverted by the provider to a third party unless this arrangement is made at the request of an aid group member or responsible relative of an aid group member.

6. Loans which represent an obligation and not a benefit such as chattel mortgages, personal notes. Such loans may be provided by an individual or commercial lending institution.

7. Monies received from a source outside the AFDC home which are used for the care and maintenance of a person who is not an aid group member or a responsible relative of an aid group member living in the home with an aid group member are not income for the aid group. Payments for multiple beneficiaries are to be prorated evenly among the intended beneficiaries to determine individual shares. If intended beneficiaries include both aid group and non-aid group members, the individual shares of the aid group members (their responsible relatives) will be considered income to the aid group relative.

8. Income belonging to non-aid group household members unless they are responsible relatives or stepparents of aid group members.

9. Reimbursement paid by an agency/employer/individual for out-of-pocket expenses incurred (or to be incurred) by a volunteer and/or an employee.

10. Retroactive AFDC and SSI payments.

11. Payments that are made either directly to AFDC recipients or to a third party for rent or utilities under section 8 of the US Housing Act.

12. Payments for utilities made to or on behalf of AFDC recipients through the Low-Income Energy Assistance Program or other energy assistance plan.

13. Support payments (child and/or spousal support) received by an aid group but transferred to the IV-D agency as assigned support.

14. That portion of payments made by a vocational rehabilitation agency which represents a direct cost to a client for participation in the program.

(b) Non cash items:

1. Goods and services provided directly to an aid group (aid group member).

2. Goods and services provided for an aid group (member) by a person/agency/organization who is not an aid group member by payment directly to a provider of the goods/services.

3. Rent or mortgage payments paid to a landlord or mortgage holder by HUD or state or local housing authorities or under section 8 of the Housing Act.

4. Value of housing provided by a state or local housing authority or another agency/individual.

5. Value of Food Stamps.

6. Value of Surplus Commodities.

7. Value of food provided under any other food or nutritional assistance program.

Tenn. Comp. R. & Regs. 1240-01-04-.15

Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 3, 1980; effective January 19, 1981. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed November 9, 1982; effective December 9, 1982. Amendment filed May 17, 1982; effective June 16, 1982. Amendment filed October 14, 1983; effective November 14, 1983. Amendment filed December 2, 1983; effective January 1, 1984. Amendment filed April 30, 1985; effective May 30, 1985. Amendment filed April 30, 1985; effective July 14, 1985. Amendment filed August 5, 1986; effective November 29, 1986. Amendment filed November 28, 1986; effective February 28, 1987. Amendment filed May 8, 1987; effective August 29, 1987. Amendment filed November 6, 1987; effective February 28, 1988. Amendment filed February 12, 1988; effective May 29, 1988. Amendment filed May 23, 1988; effective August 29, 1988. Amendment filed April 4, 1997; effective June 18, 1997.

Authority: T.C.A. §§ 4-5-202, 71-1-105, 71-3-157, 71-3-158; PL 104-193; 7 CFR 273.9.