Oklahoma Department of Human Services
Sequoyah Memorial Office Building, 2400 N. Lincoln Blvd. • Oklahoma City, OK 73105
(405) 521-3646 • Fax (405) 521-6684 • Internet: www.okdhs.org
 
340:50-7-29. Income inclusions
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Revised 7-1-12

 

(a) Sources of income considered.  The worker considers all household income, unless specifically excluded at OAC 340:50-7-22, in determining monthly gross income.  Income is classified as earned or unearned.

  • (1) When one or more household members are absent from the home, before deciding whether to consider the absent household member's income, the worker must determine if the person returns to the home for part of the month.
    • (A) Per OAC 340:50-5-2, the worker does not include the absent member in the benefit amount and only counts the portion of his or her income that he or she makes available to the rest of the household when the household member does not return for part of the month.  • 1
    • (B) When the household member returns for part of each month, the worker includes him or her in the benefit amount and counts all of his or her income unless excluded per OAC 340:50-7-22.
  • (2) Per OAC 340:50-5-5, the household has the option of including a child receiving a foster payment, that includes a payment for kinship care, in the food benefit.  When the household chooses not to include the child receiving a foster care payment in the food benefit, the worker does not count the child's income, including the foster payment.
  • (3) When the household adopts a child previously in the custody of the Oklahoma Department of Human Services (OKDHS) and receives an adoption subsidy payment for the child, the worker includes the child in the food benefit and counts the child's income, including the adoption subsidy payment.  • 2
  • (4) When a member of the household becomes the guardian of a child and receives a guardianship payment from OKDHS, the payment is considered as income.  The child for whom the payment is received must be included in the food benefit.

(b) Earned income.  Earned income is income a household receives in the form of wages, commission, self-employment, or training allowances and for which a person puts forth physical labor.  Temporary disability insurance payments and temporary worker's compensation payments are considered earned income if payments are employer funded and the person remains employed.  The types of earnings listed in (1) through (4) of this subsection, including money from the sale of whole blood or blood plasma, are considered earned income.

  • (1) Wages.  The worker counts as earned income all wages and salaries for services performed as an employee, including sick pay paid by the employer to an employee who plans to return to work when recovered. • 3  This includes wages garnisheed or diverted and paid to a third party for a household's expenses. • 4   Countable wages for military personnel include any allowance included on the earnings statement, such as the Basic Allowance for Housing (BAH) and the Basic Allowance for Subsistence (BAS). 
  • (2) Self-employment.  The worker determines the household's total gross income from a self-employment enterprise per procedures described per OAC 340:50-7-30.
  • (3) Title I payments of the Domestic Volunteer Services Act.  Countable earned income includes payments paid to a household member under Title I of the Domestic Volunteer Services Act of 1973 as amended [Public Law (P.L.) 93-113] unless excluded per OAC 340:50-7-22.
  • (4) On-the-job training (OJT).  The worker counts income earned in OJT positions as earned income.  This includes OJT provided under Section 204(b)(1)(c) or Section 264(c)(1)(A) of the Workforce Investment Act for persons 19 years of age or older. 

(c) Unearned income.  In general, unearned income is that income which a household receives and is not in the form of wages, self-employment, or training allowances and for which a person does not put forth physical labor.  The types of income listed in (1) through (6) of this subsection, while not all inclusive, are considered unearned. • 5

  • (1) Assistance payments.  The worker counts payments from a federally aided public assistance program, such as Supplemental Security Income (SSI), Temporary Assistance for Needy Families (TANF), or assistance programs based on need, such as State Supplemental Payments as unearned income. 
    • (A) A household's food benefit amount does not increase when the benefit received from another program is reduced, suspended, or terminated because of a penalty imposed for an intentional failure to comply with a requirement of that program.  The other program must be a means-tested, federal, state, or local welfare or public assistance program which is governed by welfare or public assistance laws or regulations and which distributes public funds, such as, SSI and TANF.  OAC 340:10‑2‑2 explains the TANF penalty considered for Supplemental Nutrition Assistance Program (SNAP).  • 6
      • (i) When a worker is not able to obtain the necessary information and cooperation from another federal, state, or local means‑tested welfare, or public assistance program to comply with the provision in (A) of this paragraph, OKDHS is not held responsible.  The worker must make a good faith effort to get the needed information and record the details and results of this effort in the case file.
      • (ii) The worker does not reduce, suspend, or terminate the household's current food benefit amount when the benefits under another assistance program are decreased.
      • (iii) When the worker adds eligible members to the food benefit, the benefit must be adjusted regardless of whether the household is prohibited from receiving benefits for the additional member under another federal, state, or local welfare or public assistance means-tested program.
      • (iv) Changes in the household circumstances which are not related to the penalty imposed by another federal, state, or local welfare or public means-tested assistance program are not affected by the provision in (A) of this paragraph.
      • (v) The application of the provision in (A) of this paragraph applies for the duration of the imposed penalty.
    • (B) The provision in (A) of this paragraph does not apply to persons or households subject to disqualification from SNAP for noncompliance with a comparable work requirement under Title IV of the Social Security Act or an unemployment compensation work requirement.
  • (2) Pension and Social Security.  Annuities, pensions, retirement, veterans' or disability benefits, workers' or unemployment compensation, survivors' or Social Security benefits, and strike benefits are unearned income.  The worker considers disability payments as:
    • (A) unearned income when the person is no longer considered an employee of the company and an agency outside of the company pays the disability benefits; and
    • (B) earned income when the person is still considered an employee of the company and the company pays the disability benefits.
  • (3) Support and alimony.  The worker counts as unearned income support and alimony payments paid directly to the household from non-household members.     • 7   The worker also counts as unearned income, money deducted or diverted to a third party to pay a household expense when the court order directs the payment be made to the household.  The worker does not count as income money the court order states must be paid to a third party.  • 8 
  • (4) Grants, dividends, royalty, and interest payments.  Payments from government sponsored programs, such as Agricultural Stabilization and Conservation Service Programs, grants, dividends, royalties, interest, and all other direct money payments from any source which can be construed to be a gain or profit are considered as income.  The worker treats income from these sources as unearned income.  The household must provide proof of income from these sources so income can be averaged to determine monthly countable income.
  • (5) Monies which are withdrawn or dividends which are or could be received by a household from trust funds.  Dividends which the household has the option of either receiving as income or reinvesting in the trust are considered as income in the month they become available to the household.
  • (6) Department of Veteran's Affairs (VA) Aid and Attendance.  When a person receives VA Aid and Attendance income and does not pay someone outside the food benefit household to care for him or her, this is countable income.  Any portion of the VA Aid and Attendance paid to someone outside the food benefit household for care is excluded.

(d) Income of disqualified or ineligible household members.  OAC 340:50-5-10.1 gives a complete list of reasons for disqualification of household members.  The worker counts the income of disqualified persons and unqualified aliens as indicated in paragraphs (1) and (2) of this subsection.

  • (1) Income of a person disqualified for failure to comply with food benefit Employment and Training (E&T) Program requirements, a fleeing felon disqualification, or willful misrepresentation or fraud.  All income of a person disqualified for failure to comply with food benefit E&T requirements, a fleeing felon disqualification, or willful misrepresentation or fraud, is counted in it's entirety as available to the remaining household members.  The worker does not prorate utility, medical, dependent care, and excess shelter deductions.
  • (2) Income of persons disqualified for reasons other than willful misrepresentation, a fleeing felon disqualification, or failure to comply with E&T requirements.  The worker prorates the income of persons disqualified for reasons other than those stated in paragraph (1) of this subsection among all household members.
    • (A) A pro rata share of the income of a disqualified person is considered as income available to the remaining members.  The worker calculates the pro rata share by first subtracting the allowable exclusions from the disqualified member's income and dividing the income evenly among the household members, including the disqualified member.
    • (B) The worker counts all but the disqualified member's share as income available to the remaining household members.  The earned income deduction from OKDHS Appendix C-3  (.pdf, 38 pp, 4.3 MB), Maximum Food Benefit Allotments and Standards for Income and Deductions, applies to the prorated income attributed to the household if it was earned by the disqualified member.
    • (C) The portion of the household's allowable shelter and dependent care expenses that are either paid by or billed to the disqualified member is divided evenly among the household members, including the disqualified member.  When the household is using the utility standard, it is evenly prorated.  All but the disqualified member's share is considered as a deductible shelter expense for the remaining household members.
  • (3) Determining eligibility and benefit level.  The worker does not consider the needs of a disqualified or ineligible household member when determining the household's size for purposes of assigning a benefit level to the household or comparing the household's monthly income with the income eligibility standard.

INSTRUCTIONS TO STAFF 340:50-7-29

 

Revised 6-1-13

 

1.   (a) Examples of household members who do not return for part of the month include persons away from home due to military deployment or employment in another state.

(b) When the absent member makes all or part of his or her income available to the rest of the household, the worker counts it as a contribution.

(c) When the absent member deposits his or her wages in a joint bank account, the worker only counts the portion of the wages the absent member states is for the household's use.

2.   The worker counts adoption subsidy payments as income to the parent, not the child.

(1) The worker documents adoption subsidy payments in Family Assistance/Client Services (FACS) case notes as income for the parent but enters the income in the FACS Income tab for the child when the child is included in the food benefits.

(2) When the child is not included in the food benefit or when the parent is an ineligible or disqualified household member, the worker enters the income in the FACS Income tab for the parent as a contribution and documents the reason in FACS case notes.

3.   Only the excess benefit allowance, after all insurance costs are deducted, is considered as income for persons whose employers pay a benefit allowance to purchase insurance.  Examples of insurance include life, health, dental, vision, accidental death and dismemberment, and insurance for dependents.

4.   Examples of wages garnished or diverted and paid to a third party for a household's expenses include wages withheld to pay:

(1) child support;

(2) rent, even if the employer is also the landlord; or

(3) the employer for uniforms or tools required to be purchased for use on the job.

5.   This provision does not apply to household members 18 years of age and younger who are under the parental control of another adult household member, regardless of school attendance.  For the purpose of this provision, earnings include monies paid under the Workforce Investment Act and monies paid by the employer.

6.   Refer to OAC 340:10‑2‑2 to determine when Temporary Assistance for Needy Families (TANF) penalty income can be removed.

7.   The worker counts child support as income to the parent, not the child.  The worker counts cash medical payments as income when the child does not receive a SoonerCare (Medicaid) benefit.  The worker verifies if the household receives cash medical by viewing the KI1 screen.

(1) The worker documents child support in Family Assistance/Client Services (FACS) case notes and codes it as income in FACS on the Income tab for the child, even though it is considered income to the parent, if the child is included in the food benefits unless:

(A) child support is paid to a parent whose child is no longer in the food benefit; or

(B) the parent is an ineligible or disqualified household member.

(2) In the circumstances listed in (A) or (B) of this Instruction, the worker codes the child support on the Income tab for the adult as a contribution.

8.   (a) This is an example of when a payment to a third party counts as income.  The household receives $400 in court-ordered monthly child support payments.  At benefit renewal the household reports the non-custodial parent now pays $200 of the $400 directly to a creditor of the food benefit household.  In this instance the worker continues to count the entire $400 as unearned income because the payment is taken from money that is owed to the household.

(b) This is an example of when a payment to a third party does not count as income.  The household receives $400 in court-ordered child support.  In addition, the court order directs the non-custodial parent to pay $200 to a bank for repayment of a loan.  The worker does not count the additional $200 as income because the court order did not direct this payment be made to the household.

Last Updated:  8/29/2014