Section 475-3-002 - FINANCIAL ELIGIBILITYThis section discusses financial eligibility criteria including how to treat resources and income in determining eligibility for Supplemental Nutrition Assistance Program.
002.01RESOURCES. All households must comply with the resource eligibility standard to establish or continue eligibility. The household's available resources at the time the household is interviewed are used to determine eligibility. If the Department discovers a resource that was not reported at the time of the interview, then the resource will be counted in the application month. Resources acquired after the interview date are considered in subsequent months. 002.01(A)RESOURCE ELIGIBILITY STANDARD. All resources which are not specifically excluded or exempt are considered in determining eligibility. This includes nonrecurring lump sum payments in the month received. If a household exceeds the maximum resource limit, its application will be denied or its participation terminated. To be eligible beginning October 1, 2022, the value of a household's resources cannot exceed:(2) $ 4,250 for a household which consists of or includes a member who is disabled or elderly. The resource limit for the Supplemental Nutrition Assistance Program will continue to adjust automatically in accordance with 7 CFR § 273.8(b) without the need to further amend this section.
002.01(A)(i)RESOURCES OF PUBLIC ASSISTANCE PROGRAM RECIPIENTS. The resources of any household member who receives an Aid to Dependent Children Program, Supplemental Security Income, State Disability Program, or Assistance to the Aged, Blind, or Disabled Program payment are excluded. All resources are excluded for categorically eligible households.002.01(A)(ii)EXPANDED RESOURCE PROGRAM RESOURCES. Total liquid resources of $25,000 or less are excluded for Expanded Resource Program households. Liquid resources include cash on hand and funds in personal checking and savings accounts, money market accounts and share accounts. All non-liquid resources are excluded for Expanded Resource Program households.002.01(B)TYPE OF RESOURCES. There are two types of resources: liquid and nonliquid. 002.01(B)(i)LIQUID RESOURCES. Liquid resources include cash on hand, money in checking and savings accounts, savings certificates, stocks or bonds, credit card company gift card balances, and nonrecurring lump sum payments.002.01(B)(ii)NONLIQUID RESOURCES. Nonliquid resources include personal property, licensed and unlicensed vehicles, buildings, land, recreational properties, and any other property, provided none of these are specifically excluded.002.01(C)EXCLUDED RESOURCES. The following resources are excluded in determining eligibility:(1) All resources excluded pursuant to Title 7 CFR § 273.8(e);(2) Liquid resources of $25,000 or less and all non-liquid resources for households eligible for the Expanded Resource Program; and(3) Vehicles as explained below in this chapter.002.01(C)(i)HANDLING EXCLUDED LIQUID RESOURCES. Excluded liquid resources remain excluded for an unlimited period of time if the liquid resources are kept in a separate account and not combined in an account with non-excludable funds. Funds, other than assistantships, fellowships, and stipends, received for educational financial assistance, are excluded resources during the period the funds are intended to cover. When excluded liquid resources are combined in an account with non-excludable funds, the excluded liquid resources remain excluded for six months from the date they were combined with non-excluded funds. After the six months have elapsed, all funds in the combined account are counted as resources.002.01(D)VALUATION OF RESOURCES. The value of any non-excluded resource is its equity value with the exception of some licensed vehicles. 002.01(D)(i)EQUITY VALUE. Equity value equals the fair market value minus all encumbrances.002.01(D)(ii)ENCUMBRANCES. An encumbrance is the balance due on a mortgage, sales agreement, or contract.002.01(E)JOINTLY OWNED RESOURCES. Resources owned jointly by separate households will be considered entirely available to each household, unless the applicant household can demonstrate that these resources are inaccessible to the household's member(s). Ineligible household members and disqualified household members are considered household members for purposes of this section. 002.01(E)(i)PORTIONS OF A RESOURCE. If a household can demonstrate that it has access to only a portion of a jointly owned resource, the value of that portion is counted toward the resource limit.002.01(E)(ii)TOTALLY INACCCESSIBLE RESOURCES. A jointly owned resource is considered totally inaccessible to a household when both of the following conditions are met:(1) The resource cannot realistically be subdivided; and(2) The household's access to the value of the resource depends on the agreement of a joint owner who refuses to cooperate.002.01(E)(iii)RESIDENTS OF SHELTERS FOR BATTERED PERSONS. Resources are considered inaccessible to residents in shelters for battered persons if: (1) The resources are jointly owned by these persons and by members of their previous households which included the persons who subjected them to abuse; and(2) The shelter resident's access to the value of the resources is dependent on the agreement of a joint owner who still lives in the previous household which included the person who subjected them to abuse.002.01(F)TRANSFER OF RESOURCES. The transfer of resources for the purpose of qualifying for or attempting to qualify for Supplemental Nutrition Assistance Program benefits is prohibited. 002.01(F)(i)ALLOWABLE TRANSFERS. Eligibility is not affected by the transfer of the following:(1) Resources which would not otherwise affect eligibility;(2) Resources which are sold or traded at or near fair market value;(3) Resources which are transferred between members of the same household including aliens or disqualified household members whose resources are being considered available to the household;(4) Resources which are transferred for reasons other than qualifying for or attempting to qualify for Supplemental Nutrition Assistance Program benefits;(5) Resources transferred by categorically eligible households; or(6) Transfer of nonliquid resources for Expanded Resource Program households.002.01(F)(ii)DISQUALIFICATION. Households which have transferred resources deliberately for the purpose of qualifying for or attempting to qualify for Supplemental Nutrition Assistance Program benefits will be disqualified from participation for up to one year from the date the transfer is discovered as follows:(1) The resources are transferred in the three-month period before eligibility determination; or(2) The resources are transferred after the household is determined eligible in order to maintain eligibility. This would apply to resources acquired after the eligibility determination.002.01(F)(iii)DISQUALIFICATION NOTICE. When the agency has established that a household has transferred resources in order to qualify for benefits or to maintain eligibility, the household will be sent a notice of denial or a timely notice whichever is appropriate. This notice will explain the reason for and the length of the disqualification.002.01(F)(iv)DISQUALIFICATION PERIOD. The disqualification period begins in the application month for applicants. For households participating at the time of the discovery, the disqualification period begins with the first allotment after the timely notice period expires, unless a fair hearing and continued benefits are requested. The length of the disqualification period is based on the value of the excess resources at the time of the transfer. This amount is determined by:(1) Establishing the value of any non-excluded transferred resources;(2) Adding this amount to the value of other countable resources; and(3) Subtracting the maximum allowable resources from the result of step 2.002.01(F)(v)DISQUALIFICATION PERIOD BASED ON AMOUNTS. The length of the disqualification based on the amount in excess of the resource limit is: (1) $0 to $249.99 in excess is a disqualification of 1 month;(2) $250 to $999.99 in excess is a disqualification of 3 months;(3) $1,000 to $2,999.99 in excess is a disqualification of 6 months;(4) $3,000 to $4,999.99 in excess is a disqualification of 9 months; and(5) $5,000 or more in excess is a disqualification of 12 months.002.01(G)LICENSED VEHICLE AS A RESOURCE. The following sections regarding determining the value of licensed vehicles do not apply when the household is categorically eligible. The resources of any individual household member who receives a public assistance payment, as defined in chapter two, are excluded. 002.01(G)(i)ACCESS TO VEHICLES. The following is used to determine if a vehicle is accessible to all persons whose names appear on the title: (1) "And/or" indicates that the vehicle is available to all parties.(2) "Or" indicates that the vehicle is available to all parties.(3) "And" indicates that the vehicle is available to all parties unless the applicant household can demonstrate that the resource is totally inaccessible.002.01(G)(ii)EXCLUDED LICENSED VEHICLES. Any licensed vehicle is an excluded resource if the vehicle meets one of the following conditions: (1) The vehicle is used for income-producing purposes such as taxi, vehicle used for deliveries, to call on clients or customers, or required by the terms of employment;(2) The vehicle is annually producing income consistent with its fair market value, even if it is used only seasonally;(3) The vehicle is necessary for long distance travel that is essential to the employment of a household member or household member(s) whose resources are being considered as available to the household, such as a vehicle belonging to a traveling salesperson or a migrant farm worker following the work stream. This exemption does not include vehicles used for daily commuting; (a) Exclusions one through three continue to apply when the vehicle is not in use because of temporary unemployment, e.g., when a taxi driver is ill and cannot work;(4) The vehicle is used as the household's home;(5) The vehicle is needed to transport a physically disabled household member or household member(s) whose resources are being considered as available to the household, for any reason. The vehicle does not have to be specially equipped for this purpose. This exclusion is limited to one vehicle for each physically disabled household member;(6) The vehicle is necessary to carry the primary source of fuel for heating or water for home use;(7) The vehicle has been used in self-employed farming by a household member for a period of one year after the household member ceases to be self-employed in farming;(8) The sale of the vehicle and all related sale costs would return to the household $1500 or less; or(9) After vehicle exclusions numbers one through eight have been processed for each household vehicle, one licensed or unlicensed vehicle per household may be excluded using the following policy. If the vehicle has a fair market value of:(a) $12,000 or less, the total value of the vehicle is excluded;(b) More than $12,000, the amount over $12,000 is counted toward the household's resource limit; or(c) The vehicle with the greatest fair market value is processed through the $12,000 rule. The $12,000 rule is limited to one vehicle per household.002.01(G)(iii)DETERMINING THE VALUE OF NON-EXCLUDED LICENSED VEHICLES. Each vehicle which cannot be excluded will be assigned a fair market value. The fair market value of a vehicle is the average trade-in value as determined by Kelley Blue book. The basic value of a vehicle will not be increased by adding value for low mileage, optional equipment, or special equipment for people with disabilities, etc. For vehicles which are in less than average condition, as indicated by the household, the household will be given the opportunity to get verification of the true value from a reliable source. For vehicles not listed in the Kelley Blue Book, the Department accepts the household's estimate of the fair market value unless:(a) The declared value is questionable; and(b) The estimate will affect the household's eligibility. (i) In these cases, the household must obtain an appraisal or produce other evidence of the vehicle's value, such as a tax assessment or newspaper advertisement listing the price of similar vehicles.002.01(G)(iii)(1)CLASSIC AND CUSTOM CARS. For licensed antique, custom-made, or classic vehicles, the worker asks the household to provide verification of the value if the worker is unable to make an accurate appraisal.002.01(G)(iii)(2)EQUITY VALUE. Either the equity value of the vehicle or the fair market value of the vehicle minus $4,650 is counted against the household's resource limit. The equity value is the fair market value of the vehicle minus encumbrances.002.01(G)(iii)(3)LICENSED VEHICLES VALUED AT FAIR MARKET VALUE MINUS $4,650. The following vehicles are evaluated only for their fair market value minus $4,650:(a) One licensed vehicle per household member age 18 or older, or household member(s) whose resources are being considered available to the household, regardless of use of the vehicle; and(b) The following, which continues to be applied during periods such as summer vacation or temporary unemployment:(i) Any other vehicle a household member age 17 or younger drives, or a household member(s) age 17 or younger whose resources are being considered as available to the household; (1) To and from employment;(2) To and from training or education which is preparing a household member for employment; or(3) To seek employment in compliance with job search criteria.002.01(G)(iii)(3)(a)REMAINING LICENSED VEHICLES. If a household has any other licensed vehicles, they will be evaluated for both equity and fair market value minus $4,650. The greater of these two amounts is applied toward the household's countable resources.002.01(H)UNLICENSED VEHICLES AS A RESOURCE. The following valuation procedures apply to unlicensed vehicles.002.01(H)(i)EXCLUDED UNLICENSED VEHICLES. An unlicensed vehicle is excluded if: (1) Used as the household's home;(2) Annually produces income consistent with its fair market value;(3) Essential to a household member's employment such as farm equipment;(4) On an Indian reservation which does not require vehicles driven by tribal members to be licensed; or(5) One licensed or unlicensed vehicle per household may be excluded using the following policy. This exclusion is limited to only one vehicle per household. If the vehicle has a fair market value of: (a) $12,000 or less, the total value of the vehicle is excluded; or(b) More than $12,000, the amount over $12,000 is counted toward the household's resource limit; and(c) The vehicle with the greatest fair market value is processed through the $12,000 rule. The $12,000 rule is limited to one vehicle per household.002.01(H)(ii)NON-EXCLUDED UNLICENSED VEHICLES. The equity value of non-excluded unlicensed vehicles is applied to the household's resource limit. The equity value is the fair market value of the vehicle minus encumbrances.002.01(I)DISQUALIFICATION FOR SUBSTANTIAL LOTTERY OR GAMBLING WINNINGS. Any household certified to receive benefits shall lose eligibility for benefits when any individual in the household receives substantial lottery or gambling winnings. The disqualification will begin the first month after report or verification, allowing for timely notice. 002.01(I)(i)REGAINING ELIGIBILITY. Disqualified households will remain ineligible until they meet the allowable resources and income eligibility requirements for their household.002.01(I)(ii)SUBSTANTIAL WINNINGS. Substantial lottery or gambling winnings are defined as a cash prize equal to or greater than the maximum allowable financial resource limit for elderly or disabled households, defined in this chapter, won in a single game before taxes or other withholdings. For the purpose of this section, the resource limit applies to all households, including non-elderly or disabled households, with substantial winnings. If multiple individuals shared in the purchase of a ticket, hand, or similar bet, then only the portion of the winnings allocated to the member of the household would be counted in the eligibility determination.002.01(J)VERIFICATION OF RESOURCES. The Department will verify the value of non-excluded resources and loans at the time of application and recertification if the total amount of countable resources indicated on the application is $1500 or more. Household declaration is accepted when the total amount of resources indicated on the application is less than $1500. The Department will not verify the value of liquid resources of $25,000 or less or verify the value of nonliquid resources for Expanded Resource Program households. During a certification period, resources only need to be verified when: (1) The Department receives information which makes the information given by the household at application appear questionable;(2) The Simplified Reporting household reports the receipt of a resource which may put the household over the resource limit; or(3) The Simplified Reporting household loses its categorical eligibility and has resources which may put the household over the resource limit.002.01(J)(i)VERIFICATION OF LOANS. Loans are considered a resource in the month received. To verify that money coming to the household is a loan, and is therefore considered a resource rather than income, the Department: (1) Accepts as loan verification a simple statement signed by the household member receiving the loan and the party providing the loan indicating that the payment is a loan and must be repaid; and(2) Requires a statement from the provider indicating that payments are being made or will be made in accordance with an established schedule when a household claims that payments from the same source received on a recurrent or regular basis are loans.002.01(J)(ii)VERIFICATION OF QUESTIONABLE RESOURCES FOR CATEGORICALLY ELIGIBLE, EXPANDED RESOURCE PROGRAM, OR REGULAR PORGRAM HOUSEHOLDS. Households must provide verification of resources if questionable in order to receive Supplemental Nutrition Assistance Program benefits. If resources are questionable and the household fails or refuses to provide verification, the household is not eligible for Supplemental Nutrition Assistance Program.002.02TYPES OF INCOME. Household income is all income, regardless of source, that is not specifically excluded. The two types of income are earned and unearned. 002.02(A)EARNED INCOME. Earned income includes all the following:(i) All gross wages and salaries of an employee including wages earned by a household member that are garnished or transferred by an employer and paid to a third party for household expenses, such as rent;(ii) Income from self-employment. This includes payments from a roomer or boarder and income from rental property if a household member actually manages the property for at least an average of 20 hours per week. For additional information regarding the determination of self-employment income, see section 002.04(B) of this chapter;(iii) Training allowances from vocational or rehabilitative programs recognized by federal, state, or local governments, as long as these allowances are not reimbursements or are not excluded for another reason;(iv) Payments to a volunteer under Title I, referred to as Volunteers in Service to America, of the Domestic Volunteer Services Act of 1973 if the volunteer was not receiving Supplemental Nutrition Assistance Program or public assistance at the time the individual joined Volunteers in Service to America;(v) Agricultural program payments in the year received;(vi) Fellowships, stipends, and assistantships with a work requirement; and(vii) On-the-job training wages under Title I of the Workforce Innovation and Opportunity Act except for dependents 18 years or younger.002.02(B)UNEARNED INCOME. Unearned income includes all the following:(i) Assistance payments from federal, federally aided or state funded public assistance programs such as Supplemental Security Income, State Disability Program, Assistance to the Aged, Blind, or Disabled Program, or Aid to Dependent Children Program;(ii) All or part of a public assistance or general assistance grant, including general assistance vendor payments for shelter when the household received no other assistance payments, that would normally be a money payment to the household but which is diverted to a third party or a protective payee unless the vendor payment is specifically excluded. No portion of benefits provided under Title IV-A of the Social Security Act except for Transitional Child Care used as an adjustment for work-related or childcare expenses is considered excludable under this provision;(iii) Assistance payments from programs which require, as a condition of eligibility, the actual performance of work without compensation other than the assistance payments themselves;(iv) Foster care payments; (1) Foster care payments from grant programs Child and Family Services, Juvenile Court, and Subsidized Guardianship. Households have the option to include or exclude the children. If the children are included the payment is counted; or(2) Foster care payments from the grant program Subsidized Adoption. Households are required to include these children and their payments in the Supplemental Nutrition Assistance Program budget;(v) State and local energy payments made directly to the household or as a vendor payment to the provider;(vi) Retirement benefits, veterans' benefits, disability benefits, Retirement, Survivors and Disability Insurance benefits, strike benefits, workmen's compensation, the gross amount of unemployment compensation, annuities, and pensions;(vii) Gross rental property income minus the cost of doing business if a household member is not actively engaged in managing the property for an average of at least 20 hours per week;(viii) Portions of reimbursements if both the following conditions are met;(1) The reimbursement exceeds the actual incurred expense it is intended to cover; and(2) The household or the provider of the reimbursement indicates that the reimbursement exceeds the expense;(ix) Alimony payments made directly to the ex-spouse or money deducted or diverted from a court-ordered support to a third party for a household expense;(x) Child support payments made directly to the household from non-household members. This includes: (1) All child support payments returned to the individual by the Child Support Payment Center; and(2) Money deducted or diverted from a court-ordered support payment or other binding written support agreement to a third party for a household expense;(xi) All other direct money payments which can be construed as a gain or benefit to the household, such as cash gifts which can be anticipated, credit card company gift cards which can be anticipated, dividends, interest, or royalties, are unearned income, regardless of source;(xii) The portion of charitable donations that exceed $300 in a federal fiscal quarter;(xiii) Two types of income from irrevocable trust funds as follows:(1) Monies withdrawn from the trust fund are considered unearned income in the month they are received unless they are otherwise excluded; and(2) Dividends which the household has the option of either receiving as income or reinvesting in the trust are considered unearned income in the month they become available to the household unless the dividends are otherwise excluded; and(xiv) Fellowships, stipends, and assistantships without a work requirement.002.03HANDLING INCOME. The following explains how income is handled. 002.03(A)INCOME EXCLUSIONS. Income exclusions are not counted as income for the household. Exclusions apply to both earned and unearned income. 002.03(A)(i)IN-KIND INCOME. In-kind income is excluded pursuant to Title 7 CFR § 273.9(c)(1).002.03(A)(ii)VENDOR PAYMENT. Certain vendor payments are excluded. A vendor payment is a money payment which meets all the following conditions. It is: (a) Made on behalf of a household;(b) Paid by a person or organization outside the household with that person's or that organization's own funds; and(c) Paid directly to either the household's creditors or a person or organization providing a service to the household.002.03(A)(ii)(1)INCOME LEGALLY OBLIGATED TO AN INDIVIDUAL. Income which is legally obligated and otherwise payable to the household but which is diverted by the provider of the payment to a third party for a household expense is counted as income and not excluded as a vendor payment.002.03(A)(ii)(2)EXCLUDED VENDOR PAYMENTS. Excluded vendor payments include: (a) Support payments which are not required by a court order or other legally binding agreement, including payments exceeding the amount specified in a court order or agreement, which are paid directly to a third party rather than the household;(b) Rent paid directly to the landlord by a household member's employer in addition to the member's regular wages;(c) Rent or mortgage payments made to landlords or mortgagees by Department of Housing and Urban Development or a state or local housing authority;(d) A public assistance or general assistance payment which is paid directly to a third party for: (ii) Childcare assistance;(iv) Expenses incurred by migrant and seasonal farm workers while in the job stream;(v) Expenses over and above the normal assistance payment; and(vi) Shelter expenses, if the household received an additional assistance payment and a general assistance payment for shelter; and(e) Low-Income Home Energy Assistance Program and weatherization payments.002.03(A)(iii)IRREGULAR INCOME. Irregular income is excluded pursuant to Title 7 CFR § 273.9(c)(2).002.03(A)(iv)STUDENT FINANCIAL ASSISTANCE. Student financial assistance is excluded pursuant to Title 7 CFR § 273.9(c)(3).002.03(A)(v)LOANS. Loans are excluded pursuant to Title 7 CFR § 273.9(c)(4).002.03(A)(vi)REIMBURSEMENTS. Reimbursements are excluded pursuant to Title 7 CFR § 273.9(c)(5).002.03(A)(vii)THIRD-PARTY MAINTENANCE PAYMENTS. Third-party maintenance payments are excluded pursuant to Title 7 CFR § 273.9(c)(6).002.03(A)(viii)INCOME OF CHILDREN. Income of children under the age of 18 is excluded pursuant to Title 7 CFR § 273.9(c)(7).002.03(A)(ix)NONRECURRING LUMP SUM PAYMENTS. Nonrecurring lump sums are excluded pursuant to Title 7 CFR § 273.9(c)(8).002.03(A)(x)INCOME WITHHELD FOR REPAYMENT. Income withheld for repayment is excluded pursuant to Title 7 CFR § 273.9(b)(5)(i).002.03(A)(xi)TRANSFERRED CHILD SUPPORT PAYMENTS. Child support payments received by Aid to Dependent Children recipients must be transferred to the Title IV-D agency to maintain Aid to Dependent Children Eligibility.002.03(A)(xii)INCOME EXCLUDED BY FEDERAL STATUTES. The following types of income are excluded by federal statute: (1) Income derived from land held in trust for certain Indian tribes;(2) Payments from designated Energy Assistance Programs;(3) Payments received under the Americorps Program;(4) Payments received from the youth incentive entitlement pilot projects and the youth community conservation and improvement projects of 1978, but not payments from the Adult Conservation Corps (Public Law 95-524);(5) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Public Law 94-540);(6) Payments received from the Workforce Innovation and Opportunity Act;(7) Payments received under the Alaska Native Claims Act including those to Nana Indians;(8) 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 (Public Law 95-433);(9) Payments to the Passamaquoddy Tribe and Penobscot Nation or any of their members received pursuant to the Maine Indian Claims Settlement Act of 1980 (Public Law 96-420, Section 5);(10) Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970;(11) Payments of relocation assistance to members of the Navajo and Hopi tribes;(12) Payments received under Title V of the Older Americans Act Amendments of 1987 including projects involving Experience Works, American Association of Retired Persons, United States Department of Agriculture Forest Service, and Area Aging Agencies;(13) Per capita payments to Indian tribal members up to $2,000 per person per payment. Gambling operation payments are not considered per capita payments;(14) The portion of a military retirement payment which goes to an ex-spouse under a divorce decree property settlement;(15) Mandatory deductions from military pay for educational purposes while the individual is enlisted;(16) Payments made under the Disaster Relief and Emergency Assistance Amendments of 1988;(17) Payments to United States citizens of Japanese ancestry and resident Japanese aliens or their survivors and payments to eligible Aleuts per Public Law 100-383, Wartime Relocation of Civilians;(18) Payments to individuals due to their status as victims of Nazi persecution;(19) Per capita payments made under Public Law 98-124, distributions to the Assiniboine Tribe of the Fort Belknap Indian Community, Montana, and the Assiniboine Tribe of the Fort Peck Indian Reservation, Montana;(20) Per capita payments made to Chippewa's of Mississippi under Public Law 99-377, August 8, 1986, and the payments made to the Red Lake Band of Chippewa Indians under Public Law 98-123;(21) Payments made from the Agent Orange Settlement Fund or any fund established by the settlement of the Agent Orange liability litigation under Public Law 101-201 and Public Law 101-239;(a) Public Law 102-4, Agent Orange Act of 1991, authorized veteran's benefits to some veterans with service connected disabilities resulting from exposure to Agent Orange. These Veteran's Administration payments are not excluded by law;(22) Veteran's Administration annual adjustment in disability pension;(23) Earned Income Tax Credits and Advanced Earned Income Tax Credits;(24) Assistance to children under Public Law 89-642, Section 11(b) of the Child Nutrition Act of 1966;(25) Supplemental Nutrition Assistance Program benefits under Women, Infants, and Children Program demonstration projects, exchanged for food at farmers' markets under Public Law 100-435, Section 501;(26) Payments to specific Indian tribes;(27) Payments under Public Law 98-500, the Old Age Assistance Claims Settlement Act except for per capita shares in excess of $2,000;(28) Payments under Public Law 101-426, Section 6(h)(2), the Radiation Exposure Compensation Act of 1990;(29) Payments under Public Law 104-204 dated September 26, 1996, to any child of a Vietnam veteran who was born with spina bifida. The term "child" means a biological child of any age or marital status who was conceived after the date on which the veteran first served in the Republic of Vietnam during the Vietnam era;(30) Any income, regardless of the source, which is deposited in a Program to Achieve Self-Sufficiency account;(31) Payments received under Title II (Retired Senior Volunteer Program, Foster Grandparents, and Senior Companion Program) and Title III (Service Corps of Retired Executives and Active Corps of Executives) of the Domestic Volunteer Services Act of 1973 (Public Law 93-113, as amended). Payments under Title I, including Volunteers in Service to America, University Year for Action, and the Urban Crime Prevention Program to volunteers are excluded for those persons receiving Supplemental Nutrition Assistance Program or public assistance at the time they joined the Title I program;(a) The exception is Households which were receiving an income exclusion for a Volunteers in Service to America or other Title I subsistence allowance at the time of conversion to the Food Stamp Act of 1977 continue to receive an income exclusion for Volunteers in Service to America for the length of their volunteer contract in effect at the time of conversion;(32) Subsidy received by a household through the Medicare Drug Discount Program under the Medicare Prescription Drug Improvement and Modernization Act;(33) Any education loans on which payment is deferred, grants, scholarships, fellowships, and veteran's educational benefits and similar assistance;(34) Rent or mortgage payments made by Department of Housing and Urban Development or a state or local housing authority and payments for the purpose of providing energy assistance including utility reimbursements by Department of Housing and Urban Development or Farmers Home Administration;(35) Funds in Department of Housing and Urban Development Family Self-Sufficiency Program escrow accounts; and(36) Combat related military pay if the additional pay is the result of deployment to or service in a combat zone and was not received immediately prior to serving in a combat zone. This is authorized under United States Code, Title 37, Section 5.002.03(A)(xiii)CHARITABLE CONTRIBUTIONS. Charitable contributions are excluded pursuant to Title 7 CFR § 273.9(c)(12).002.03(A)(xiv)EMPLOYMENT AND TRAINING PAYMENTS. Employment and training payments are excluded pursuant to Title 7 CFR § 273.9(c)(14).002.03(A)(xv)PAYMENTS MADE BETWEEN HOUSEHOLD MEMBERS. Payments between household members are excluded. This includes payments for child care or other services provided for other household members as long as the source of the payment is from an individual within the household and not an outside source.002.03(B)ANTICIPATING INCOME. Anticipating income is the process of projecting the income that the Department is reasonably certain a household will receive each month during the certification period. All forms of non-excluded income will be prospectively anticipated at the time of application, recertification, and when any change is reported to the Department. This makes it possible for the Department to determine eligibility and benefit level based on monthly income. If the amount of income or when it will be received is uncertain, the income will not be counted in the Supplemental Nutrition Assistance Program budget. However, any portion of the income that can be anticipated with reasonable certainty and verified will be counted. 002.03(B)(i)APPLICATION MONTH INCOME. When the Department computes application month income and the actual income for that month is known, the Department will use the following procedures: (1) If the income is for less than a full month, actual application month income is used;(2) If the income is for a full month and paid either weekly or bi-weekly, the income is converted to a monthly amount; or(3) If the income is for a full month and is not paid weekly or biweekly, actual income is used.002.03(B)(ii)INCOME IN THE MONTH RECEIVED. Income anticipated during the certification period is considered only in the month it is expected to be received. Income counted in the budget is never counted as a resource for the same month. 002.03(B)(ii)(1)WAGES WITHHELD BY EMPLOYERS. Wages held back at the employee's request are considered income in the month the wages would otherwise have been received. Wages held back by the employer as a general practice, even if in violation of law, are not counted as income unless: (a) The household anticipates that it will ask for and receive an advance; or(b) The household anticipates that it will receive income from wages that were previously held by the employer and therefore not counted as income.002.03(B)(ii)(2)INCOME ADVANCES. Advances on income are counted in the month received only when they can be reasonably anticipated.002.03(B)(ii)(3)INCOME VARIATION BASED ON MAILING. Anticipated income received monthly or twice a month will not be varied solely because mailing cycles cause more than the normal number of payments in a one month period. Examples of this type of income are public assistance benefits, Supplemental Security Income benefits, Retirement, Survivors and Disability Insurance payments or an employer issuing checks early because the normal payday falls on a weekend or holiday.002.03(B)(iii)USING PAST INCOME. The following explains how past income is used to prospectively budget future income in the budget. 002.03(B)(iii)(1)PAST 30 DAYS AS AN INDICATOR. The Department will use income from any consecutive 30-day period within three months before the application date to project future income unless changes have occurred or are anticipated. For households with seasonal income, the Department will compare the income of the most recent season to the certification period. In the case of a substantial change in the household's business, income is determined prospectively. This method is not used for migrant and seasonal farm workers.002.03(B)(iii)(2)PAST 30 DAYS NOT REFLECTIVE. When income from any consecutive 30-day period within three months before the application date does not reflect household circumstances, the Department will use the employer's verified best estimate to project future income. This criteria applies when income is from a new source, or the pay rate or the number of hours worked per week has increased or decreased.002.03(B)(iii)(3)USING MORE THAN 30 DAYS. If income fluctuates to the extent that the past 30 days does not provide a reasonable basis of anticipation of future income, more than 30 days' income may be used to project the household's monthly income. Fluctuating income is that which varies from month to month due to:(i) Work hours fluctuating;(ii) Variances in the amount of work when paid other than hourly; or(iii) The irregular nature of the income. 002.03(B)(iii)(3)(a)INCOME NOT CONSIDERED FLUCTUATING. Income which varies from pay period to pay period because of an increase or decrease in the pay rate or because the number of hours have permanently changed would not be considered fluctuating income.002.03(B)(iii)(4)INCOME PAID MONTHLY OR SEMI-MONTHLY. If paid monthly or semi-monthly and the past 30 days of income are not representative because of fluctuating income, the Department may use a period of longer than 30 days to compute the monthly income amount. If monthly income is used, one month's verification will be considered acceptable unless one month is not reflective, in which case a reflective number of months will be used. The months used must be representative of the anticipated fluctuation.002.03(C)INCOME AVERAGING. The following applies to how income is averaged. 002.03(C)(i)INCOME RECEIVED IN LESS THAN ONE YEAR. Some households receive their annual income in a period of less than one year by contract or through self-employment. The income for these households is averaged over a 12-month period, provided the contract income is not received on an hourly or piecework basis. Self-employment income or contract income that is not received on an hourly or piecework basis and that is intended to meet the household's needs for only part of the year will be averaged over the period of time the income is intended to cover. Examples of households of this type are those containing school employees, share croppers, and farmers. These averaging provisions do not apply to:(1) Households whose income is received on an hourly or piece work basis; and(2) Migrant or seasonal farm workers.002.03(D)VERIFICATION OF INCOME. Before initial certification, the Department will verify gross non-excluded income. At the time of recertification, earned income will be verified again. Additionally, unearned income will be verified if the amount or the source has changed. However, under certain conditions, the Department determines an income amount based on the best available information. These conditions are as follows: (i) All attempts to verify the income have failed because the source has failed to cooperate with the household and the Department; and(ii) No other source of verification is available.002.04POLICIES FOR SELF-EMPLOYMENT INCOME. The following policies apply to all households receiving self-employment income including households that own and operate a commercial boarding house. 002.04(A)ANNUALIZING SELF-EMPLOYMENT INCOME. Annualizing income is averaging income over a 12-month period. Self-employment income is annualized even if the household receives additional income from sources other than self-employment. Self-employment income which is intended to meet the household's needs for only part of the year will be averaged over the period of time it is intended to cover. Self-employment income which represents a household's annual income will be annualized when: (1) The income is received within a short period of time during the 12 months; or(2) The income is received on a monthly basis but represents a household's annual support.002.04(A)(i)SUBSTANTIAL CHANGE IN CIRCUMSTANCES. Self-employment income is computed based on anticipated earnings when:(1) The household has experienced a substantial increase or decrease in business; and(2) The averaged amount does not reflect the household's actual monthly income.002.04(A)(ii)NEW ENTERPRISES. If a household's self-employment enterprise has been in existence for less than one year, the income from that enterprise will be averaged over the period of operation. The monthly income will be projected for the coming year.002.04(B)DETERMINING SELF-EMPLOYMENT INCOME. The following regulations apply to determining self-employment income. 002.04(B)(i)AVERAGED SELF-EMPLOYMENT INCOME. The Department will determine the gross income, including capital gains, from self-employment for each source of self-employment of the household. 002.04(B)(i)(1)INCOME CALCULATION WITH TAX RETURNS. For individuals who incur allowable operating expenses and provide a tax return to document such expenses and income, the actual allowable operating expenses are deducted from gross income. A tax return is only usable when the business was operated for the entire prior calendar year.002.04(B)(i)(2)INCOME CALCULATION WITH LEDGERS OR HOUSEHOLD RECORDS. For individuals who incur but provide no tax return to document such expenses, the department applies a standard disregard of 49% to the gross income and does not calculate actual expenses.002.04(B)(i)(3)HOUSEHOLDS WITH NO EXPENSES. If the household reports no expense(s) from a source of self-employment income, the gross income from that source is used to calculate Supplemental Nutrition Assistance Program eligibility.002.04(B)(i)(4)SPECIAL PROCEDURES FOR FARMING SELF-EMPLOYMENT INCOME. If the allowable costs of producing self-employment farm income are verified with a tax return and exceed the gross farm income, the losses are offset against other countable income. To qualify for this offset, the person must receive or anticipate receiving annual gross proceeds of $1,000 or more from the farming enterprise. If a tax return is not provided to document the costs of producing self-employment farm income, a standard disregard of 49% is applied to the gross income. A loss is not allowed.002.04(B)(ii)CAPITAL GAINS. The full amount of any capital gain is counted as income for Supplemental Nutrition Assistance Program purposes. The proceeds from the sale of capital goods or equipment are computed in the same way as a capital gain is computed for federal income tax purposes. Even if only 50% of the proceeds from the sale of capital goods or equipment is taxed for federal income tax purposes, the full amount of the capital gain is counted as income in computing the Supplemental Nutrition Assistance Program budget.002.04(B)(iii)ALLOWABLE SELF-EMPLOYMENT EXPENSES. Allowable self-employment operating expenses include, but are not limited to: (1) Identifiable costs of labor;(5) Payments on the principal of the purchase price of income-producing real estate and capital assets;(9) Interest paid to purchase income-producing property;(11) Taxes paid on income-producing property; and(12) Reimbursement from the USDA United States Department of Agriculture Child and Adult Care Food Program.002.04(B)(iv)EXPENSES NOT ALLOWED. When a tax return is utilized to verify self-employment, the following expenses are not allowable as self-employment operating expenses: (1) Net losses from previous tax years;(2) Federal, state, and local income taxes. However, any taxes paid by the business for employees are allowed as an expense;(3) Money set aside for retirement purposes;(4) Other work-related personal expenses, such as transportation to and from work;(7) Any amount that exceeds the payment a household receives from a boarder for lodging and meals; and(8) Any other expense that cannot be reasonably considered an expense for the business or is allowed as a deduction elsewhere in the budget.002.04(C)INCOME FROM BOARDERS. These provisions apply to households that receive income from boarders but do not operate a commercial boarding house. 002.04(C)(i)PAYMENTS. Payments from boarders are treated as self-employment income. Income from boarders includes all direct payments to the household for room and meals, including contributions to the household's shelter expenses. However, shelter expenses paid directly by boarders to someone outside the household are not counted as income to the household.002.04(C)(ii)COST OF DOING BUSINESS. When a tax return is provided to document the expenses, the cost of doing business equals either of the following amounts provided that the amount allowed as a cost of business does not exceed the payment the household receives from the boarder for lodging and meals:(a) The value of the maximum allotment for a household size equal to the number of boarders; or(b) The actual documented cost of providing room and meals, if this cost exceeds the amount of item one above. Only separate and identifiable costs of providing room and meals to boarders are included as actual documented costs.002.04(C)(ii)(1)CALCULATION WITHOUT TAX RETURN. If there are costs of doing business but no tax return is provided to document such expenses, a standard disregard of 49% is applied to the gross income.002.05TREATMENT OF RESOURCES, INCOME AND DEDUCTIONS OF INELIGIBLE STUDENTS OR OTHER NON-HOUSEHOLD MEMBERS. The resources of ineligible students or other non-household members are excluded. The income of ineligible students or other non-household members is excluded unless the ineligible student or other non-household member makes a cash contribution to the household. These cash contributions or payments are considered countable unearned income to the household. Vendor payments by the ineligible student or other non-household member on behalf of the household are excluded. If a household shares deductible expenses with an ineligible student or non-household member, the ineligible student's or non-household member's prorated share is not deductible as a household expense. 002.05(A)COMBINED WAGE. When the earned income of one or more household members and the earned income of a non-household member are combined into one wage, the income of the household members is determined as follows: (i) If the household's share can be identified that portion due to the household as earned income is counted; or(ii) If the household's share cannot be identified, the income is prorated among all those who earned it.002.06TREATMENT OF RESOURCES, INCOME, AND DEDUCTIONS OF HOUSEHOLD MEMBERS INELIGIBLE DUE TO FAILURE TO PROVIDE A SOCIAL SECURITY NUMBER, INELIGIBLE ABLE BODIED ADULT WITHOUT DEPENDENTS, AND INELIGIBLE ALIEN STATUS. This section describes procedures for determining the eligibility of remaining household members when a household member(s) is ineligible due to: (1) Failure to provide a social security number;(2) Noncompliance with Able Bodied Adults Without Dependents work requirements after three months of time-limited benefits;(4) Food Distribution Program on Indian Reservations-Intentional Program Violation; or(5) Non-cooperation with Child Support Enforcement.002.06(A)PRORATION METHOD. All resources of an ineligible household member in this section are counted to the remaining household members. A pro rata share of the income of the ineligible individual will be counted as income to the remaining household members. The pro rata share is calculated by dividing the countable income evenly among the household members, including the ineligible member. All but the ineligible member's share is counted as income for the remaining household members. When considering deductible expenses for a household with an ineligible household member: (i) The earned income deduction applies only to the prorated income which is attributed to the household. The earned income deduction is subtracted from the ineligible member's earned income and divided evenly among all household members including the ineligible member(s);(ii) Those portions of the household's allowable expenses for dependent care, child support and shelter costs, aside from utilities, which are either paid by or billed to the ineligible member will be divided evenly among the household members, including the ineligible member; and(iii) All but the ineligible member's share is counted as a deductible expense for the remaining household members.002.06(B)ELIGIBILITY AND BENEFIT LEVEL. The ineligible member will not be included in determining the household's size for the purpose of assigning a benefit level to the household, comparing the household's monthly income to the income eligibility standards, or comparing the household's resources with the resource limits. The income and deductions are prorated between the ineligible household member and the remaining eligible household members.002.06(C)REDUCTION OR TERMINATION OF BENEFITS WITHIN THE CERTIFICATION PERIOD. When an individual becomes an ineligible household member during the household's certification period, the ineligible household member is removed when determining the benefit level and allotment for the remaining members of the household.002.07TREATMENT OF RESOURCES, INCOME AND DEDUCTIONS OF DISQUALIFIED HOUSEHOLD MEMBERS. This section describes procedures for determining the eligibility of remaining household members when a household member has been disqualified for: (1) A work requirement violation;(2) An intentional program violation;(3) Conviction for the use of Supplemental Nutrition Assistance Program benefits in the sale of a controlled substance;(4) Conviction for trafficking of Supplemental Nutrition Assistance Program benefits of $500 or more;(5) A drug felony violation described in this chapter;(6) Fleeing from prosecution or custody for a felony, parole, or probation violation;(7) Found guilty by a court or state agency of having made a fraudulent representation of identity or residency to receive Supplemental Nutrition Assistance Program benefits in more than one household for the same month;(8) Conviction for the use of Supplemental Nutrition Assistance Program benefits in the sale of firearms, ammunition, or explosives; and(9) Convicted of certain felonies described in this chapter.002.07(A)PRORATION METHOD. The resources of the disqualified individual are counted in their entirety to the remaining household members. The earned or unearned income of the disqualified individual is counted in its entirety to the remaining eligible household members. The household's entire allowable earned income, standard, medical, dependent care, child support, and excess shelter deductions continue to apply to the remaining eligible household members.002.07(B)ELIGIBILITY AND BENEFIT LEVEL. The disqualified member will not be included in determining the household's size for the purpose of assigning a benefit level to the household, comparing the household's monthly income with the income eligibility standards, comparing the household's resources with the resource limits, or determining the household's standard deduction.002.07(C)REDUCTION OR TERMINATION OF BENEFITS WITHIN THE CERTIFICATION PERIOD. When an individual is disqualified during the household's certification period, the eligibility or ineligibility of the remaining household members will be determined. 002.07(C)(i)INTENTIONAL PROGRAM VIOLATION NOTICE TO THE HOUSEHOLD. Adequate notice only is required to reduce the household's allotment. The household may request a fair hearing to contest the reduction or termination of benefits unless the household has already had a fair hearing on the claim amount as a result of consolidation of the disqualification hearing with the fair hearing.002.08TREATMENT OF INCOME OF STRIKERS. When determining eligibility for households containing a striker, the Department will: (A) Compare the striker's income as it stood the day before the strike to the striker's current income;(B) Add the higher of the two amounts to the current income of non-striking members during the month of application; and(C) Determine eligibility by considering the day before the strike as the day of the application and assume the strike did not occur.002.09DEEMING OF IMMIGRANT SPONSOR'S RESOURCES AND INCOME. People lawfully admitted to the United States as actual or prospective permanent residents or persons with the right to eventually obtain citizenship may be immigrants. For immigrants who are sponsored by individuals, deeming is the process of counting a sponsor's income and resources as accessible to an immigrant. The income and resources of an individual sponsor are counted when determining the eligibility of an immigrant. The individual sponsor signs an affidavit of support as required by the Immigration and Nationality Act. The resources and income of the sponsor's spouse are used in the deeming process only if the spouse has also signed the affidavit of support. The sponsor's resources and income are considered available until the immigrant:(1) Becomes a United States citizen; or(2) Obtains 40 qualifying work quarters of coverage as defined in Title II of the Social Security Act and the immigrant did not receive any federal means-tested public benefit during a countable quarter after December 31, 1996: (i) Qualified work quarters earned after December 31, 1996, cannot be counted if the noncitizen, parent, or spouse received certain federal means-tested public benefits during the quarter the earnings were credited. Individuals who believe they should be credited with more quarters of work may request that Social Security Administration investigate their work history to determine if more quarters can be credited. The applicant may participate pending the results of the investigation for up to six months from the date of Social Security Administration's original finding of insufficient quarters.002.09(A)REPORT OF SPONSOR'S CHANGES. During the certification period, the immigrant is not required to report changes regarding the sponsor. At recertification, the immigrant must report if the sponsor:(ii) Loses employment; or002.09(B)EXEMPT FROM DEEMING. Individuals are exempt from deeming requirements if they are: (i) Not required to have a sponsor under the Immigration and Nationality Act, such as refugees, parolees, asylees, Cuban or Haitian entrants, Amerasians, or deportees;(ii) Sponsored by an organization or employer;(iii) Participating in the sponsor's household;(iv) Children age 17 or younger;(vi) Battered spouse or child; or(vii) Ineligible and disqualified household members.002.09(C)BATTERED IMMIGRANTS. Deeming is exempted for 12 months if:(i) The immigrant, the immigrants' child, or both were battered;(ii) The battery was committed by a spouse, a parent, or a member of the spouse's or parent's family while they are residing together; and(iii) The battered immigrant, child, or parent must no longer reside in the same household as the abuser.002.09(D)INDIGENT IMMIGRANTS. If an immigrant is unable to obtain food and shelter, taking into account the immigrant's own income plus any cash, food, housing, or other assistance provided by other individuals including the sponsor(s), the amount deemed will be the amount actually provided to the immigrant by the sponsor. 002.09(D)(i)DEEMED INCOME FOR INDIGENT IMMIGRANTS. The Department will determine the amount of income and other assistance provided in the month of application. This income is the sum of the eligible sponsored alien household's own income, the cash contributions of the sponsors and others, and the value of any in-kind assistance of the sponsor or others. If the alien is indigent, the amount that will be deemed will be the amount actually provided for a period beginning on the date of determination and ending 12 months after the determination date. Each instance of indigence is renewable for an additional 12-month period.002.09(D)(ii)REPORTING INDIGENT IMMIGRANTS. When an immigrant is determined indigent, the Department will notify the United States Attorney General and the United States Citizenship and Immigration Services of each determination, including the names of the sponsor and the sponsored immigrant involved.002.09(E)IMMIGRANT RESPONSIBILITIES. As an eligibility requirement, an immigrant is responsible for: (1) Obtaining the necessary cooperation from the sponsor; and(2) Providing income and resource information and verification from the sponsor.002.09(E)(i)SPONSOR VERIFICATION. If an immigrant does not provide the necessary information or verification, the immigrant is not eligible for assistance. If the sponsor or required documents related to the sponsor cannot be located, the eligibility of any remaining household members is determined by including the income and resources of the ineligible immigrant and excluding the deemed income and resources of the sponsor.475 Neb. Admin. Code, ch. 3, § 002
Amended effective 5/21/2016.Amended effective 7/4/2020Amended effective 9/17/2024