Ariz. Admin. Code § R6-5-4914 - Income Eligibility Criteria
A. Child Care Assistance Without Regard to
Income. The Department shall not determine income eligibility for Child Care
Assistance for the following:
1. Jobs
participants who need Child Care Assistance to participate in the Jobs Program,
and who are referred to CCA as prescribed in
R6-5-4904(B).
2. Cash Assistance participants who need
Child Care Assistance to maintain employment.
3. CPS referred families, and CPS or DDD
foster families who need Child Care Assistance as documented in a CPS or foster
care case plan, and who are referred to CCA as prescribed in
R6-5-4904(B).
B. Child
Care Assistance With Regard to Income. The Department shall determine income
eligibility for Child Care Assistance for the following:
1. Former Cash Assistance participants who
need Child Care Assistance to maintain employment as prescribed in
R6-5-4916(A).
2. Clients who are
not Cash Assistance participants but who need Child Care Assistance to maintain
employment.
3. Teen parents who
need Child Care Assistance for educational activities as prescribed in
R6-5-4912(A)(4).
4. Clients who need Child
Care Assistance because they are unable or unavailable to care for their own
children due to physical, mental or emotional disability, participation in a
drug treatment or court-ordered community service program, or residency in a
homeless or domestic violence shelter as prescribed in
R6-5-4912(A)(6).
C.
Income Maximum for Child Care Assistance. The Department shall determine income
eligibility by calculating the gross monthly income of all family members
included in family size unless otherwise excluded as prescribed in subsections
(D), (E), (F), and (H).
1. If the gross
monthly income for the family is equal to or less than 165% FPL, the family
meets the income eligibility requirements for Child Care Assistance.
2. If the gross monthly income for the family
exceeds 165% FPL, the family does not meet the income eligibility requirements
for Child Care Assistance.
D. Family Size Determination. The Department
shall include the countable income of every person included in family size for
the purpose of determining income eligibility as prescribed in this subsection.
1. Family size shall consist of:
a. The applicant for Child Care
Assistance;
b. The applicant's
natural, adoptive, and step children;
c. Any other parent or responsible person
living in the household who is legally and financially responsible for either
the applicant, or for the children needing care;
d. The children of the other parent or
responsible person residing in the same household; and
e. The tax claimant under subsection
R6-5-4914(D)(3).
2. When
a parent applies for Child Care Assistance for a natural, adoptive, or step
child, the Department shall:
a. If the
applicant and other adult in the household are married, or have children in
common who need child care, make one family size determination for the
family.
b. Count the income of both
parents.
3. When a tax
claimant resides in the household with a parent who is applying for or
receiving Child Care Assistance, the Department shall include the tax claimant
in family size if:
a. The tax claimant states
an intention to claim any of the following members of the eligible family
residing in the same household as a dependent on the tax claimant's federal or
state income tax return for the current calendar year:
i. The parent who is the applicant;
ii. The parent's natural, adoptive, or step
children less than 18 years of age;
iii. The parent's spouse;
iv. The other parent of the children for whom
assistance is requested, or who are receiving Child Care Assistance;
or
v. The dependent children of the
other parent residing in the household, and who are included in family
size.
b. The tax
claimant signs a declaration stating the intention to claim specific members of
the eligible family as tax dependents for the current calendar year.
4. The Department shall include
the tax claimant's dependent children under age 18 and spouse residing in the
same household in family size.
5.
When the applicant and his or her spouse are legally married and do not reside
in the same household, but have the intention of remaining a family, the
Department shall include the spouse in family size if the absent spouse is
engaged in an eligible activity under R6-5-4912.
6. When a caretaker relative applies for
Child Care Assistance for another related child only:
a. Family size shall consist of the other
related child or children only; and
b. The Department shall exclude both the
caretaker relative and his or her spouse from the family size
determination.
7. When
the applicant applies for Child Care Assistance for natural, adoptive, or step
children, and also for another related child, the Department shall make one
family size determination for the family:
a.
Family size shall consist of the applicant, the applicant's child, any other
related eligible children who need care, and any other parent or responsible
person in the household.
b. Any
income received by or for an "other related" child less than 13 years of age
shall be counted.
c. If there is
another relative in the household who states an intention to claim an other
related child as a dependent for income tax purposes, this tax claimant must be
the applicant for the child. The Department shall determine family size
separately for this child under
R6-5-4914(D)(6).
8. When an unwed minor parent
applies for Child Care Assistance for his or her own child, and resides with
his or her parents:
a. The Department shall
include the following in family size, unless the minor parent or the minor
parent's children are tax dependents as described under subsection (d) below:
i. The minor parent; and
ii. The minor parent's child.
b. The Department shall not
include the parents and siblings of the unwed minor parent in family
size.
c. The Department shall deem
a portion of the monthly gross countable income received by the parent of the
minor parent to be available to meet the needs of the unwed minor parent and
his or her children as described in this subsection, unless the parent of the
minor parent is a tax claimant, under subsection (d) below.
i. The Department shall calculate the monthly
gross countable income of the parents of the unwed minor parent;
ii. The Department shall subtract the amount
of monthly gross countable income that equates to 165% FPL as specified in
Appendix A, for the number of parents and siblings of the unwed minor parent
residing in the same household only; and
iii. The Department shall count the remaining
monthly gross countable income received by the parents of the unwed minor
parent as available to meet the needs of the unwed minor parent and his or her
children in the income eligibility determination.
d. If a parent of the minor parent is a tax
claimant who intends to claim the minor parent or the minor parent's child as a
tax dependent, the Department shall determine family size as follows:
i. The Department shall include the tax
claimant, the tax claimant's spouse, and the tax claimant's dependent children
residing in the same household in family size with the minor parent, and his or
her child; and
ii. The Department
shall count all countable income received by the tax claimant and the tax
claimant's spouse in the income eligibility determination.
9. When a married, separated,
widowed, or divorced minor parent applies for Child Care Assistance for his or
her own children:
a. The Department shall
include the minor parent and his or her own dependent children in family
size;
b. The Department shall
include monthly gross countable income received by the minor parent and the
other parent or responsible person residing in the home in the income
eligibility determination;
c. The
Department shall not consider income received by the parent of the minor parent
in the income eligibility determination, unless the parent of the minor parent
is a tax claimant, under subsection (8)(d); and
d. The Department shall not include parents
and siblings of the minor parent in family size, unless the parent of the minor
parent is a tax claimant, under subsection (8)(d).
10. If a tax claimant included in family size
is also a parent who needs Child Care Assistance for his or her own child, the
tax claimant shall submit a separate application.
a. The Department shall make a separate
eligibility and family size determination for the tax claimant's dependent
children less than age 18.
b. The
Department shall include the parent, spouse or other parent or responsible
person, and their dependent children in family size.
11. When a guardian applies for Child Care
Assistance for a child in guardianship only, the Department shall:
a. Make one family-size determination for the
child in guardianship.
b. Include
all children in guardianship in family size.
c. Exclude the guardian and the guardian's
spouse from family size.
d. Count
the income received by or for the children in guardianship.
e. If the parent of the child needing care is
also in the household, the Department shall not include the parent in family
size; and shall not count his or her income.
12. When the applicant applies for Child Care
Assistance for natural, step, or adoptive children in addition to the children
in guardianship, the Department shall:
a. Make
one family-size determination.
b.
Include in family size the applicant, the applicant's children, the children in
guardianship less than 13 years of age who need care, and any other parent or
responsible person in the household.
c. Count the applicant's and other parent's
or responsible person's income.
d.
Count the income received by or for the children in guardianship less than 13
years of age.
13. When a
foster parent applies for Child Care Assistance for his or her own children:
a. The Department shall include the
applicant, other parent or responsible person, and their children in family
size; and
b. The Department shall
not include the foster child in family size unless the foster child is a
relative.
E.
Verification of Tax Claimant Status
1. The
Department shall verify tax claimant status as described in
R6-5-4914(D)
by requiring:
a. The client to submit a signed
and dated declaration stating that no relative 18 years of age or older
residing in the same household intends to claim any member of the eligible
family as a tax dependent for the current calendar year; or,
b. The client and the relative 18 years of
age or older residing in the same household who intends to claim a member of
the eligible family as a tax dependent for the current calendar year to:
i. Submit a signed and dated declaration
stating that fact; and,
ii. State
the name of the family member whom the relative intends to claim as a tax
dependent.
2.
The Department shall include the tax claimant, his or her spouse, and dependent
children in family size upon receipt of the signed declaration.
3. If the tax claimant no longer intends to
claim a member of the eligible family as a tax dependent, the client must sign
and date a new declaration.
a. The new
declaration shall specify that the tax claimant no longer intends to claim a
member of the eligible family as a tax dependent.
b. The Department shall remove the tax
claimant, tax claimant's spouse, and his or her dependent children from family
size after receipt of the signed declaration.
F. Countable Income. The Department shall
count the gross monthly income of a family as prescribed in subsection (D);
countable income shall include:
1. Gross
earnings received for work including wages, salary, armed forces pay (with the
exception of specifically designated allotments for food and shelter costs),
commissions, tips, overtime, piece-rate payments, and cash bonuses earned,
before any deductions.
2. Net
income from non-farm self employment including gross receipts minus business
expenses. Gross receipts include the value of all goods sold and services
rendered. Business expenses include costs of goods and services purchased or
produced, rent, heat, light, power, depreciation charges, wages, and salaries
paid, business taxes, and other expenses incurred in operating the business.
The value of salable merchandise consumed by the proprietors of retail stores
is not included as part of net income. Payments on loans or mortgages obtained
to increase capital investments in property or equipment are not allowed as
deductible expenses.
3. Net income
from farm self employment which includes gross receipts minus operating
expenses. Gross receipts include the value of all products sold, government
crop loans, money received from the rental of farm equipment to others, and
incidental receipts from the sale of wood, sand, gravel, and similar items.
Operating expenses include costs of feed, fertilizer, seed, and other farming
supplies, wages paid to farmhands, depreciation charges, cash rent, interest on
farm mortgages, farm building repairs, farm taxes, and other expenses incurred
in operation of the farm. The value of fuel, food, or other farm products used
for family living is not included as part of net income. Payments on loans or
mortgages obtained to increase capital investments in property or equipment are
not allowed as deductible expenses.
4. Social Security payments prior to
deductions for medical insurance including Social Security benefits and
"survivors" benefits, and permanent disability insurance payments made by the
Social Security Administration.
5.
Railroad retirement insurance income.
6. Dividends including interest on savings,
stocks and bonds, income and receipts from estates or trusts, net rental income
or royalties, receipts from boarders or lodgers (net income received from
furnishing room and board shall be 1/3 of the total amount charged). Interest
on Series H. United States Government Savings bonds.
7. Mortgage payments received shall be
prorated on a monthly basis.
8.
Public assistance payments including payments from the following programs: Cash
Assistance, Supplemental Security Income (SSI), State Supplementary Payments
(SSP), General Assistance (GA), Bureau of Indian Affairs General Assistance
(BIAGA), and Tuberculosis Control (TC).
9. Pensions and annuities including pensions
or retirement benefits paid to a retired person or their survivors by a former
employer or by a union, or distributions or withdrawals from an individual
retirement account.
10.
Unemployment Insurance payments including compensation received from government
unemployment insurance agencies or private companies during periods of
unemployment, and any strike benefits received from union funds.
11. Workers' compensation payments.
12. Money received from the Domestic
Volunteer Act when the adjusted hourly payment is equal to or greater than
minimum wage; Action Volunteer Programs include VISTA, Foster Grandparent
Program (FGP), Retired Senior Volunteer Program (RSVP), and Senior Companion
Program (SCP).
13. Alimony or
spousal maintenance which shall be counted the month received.
14. Child support which shall be counted the
month received.
15. Veterans'
pensions including benefits and disability payments paid periodically by the
Veterans Administration to members of the Armed Forces or to a survivor of
deceased veterans.
16. Cash gifts
received on a monthly basis from relatives, other individuals, and private
organizations, as a direct payment in the form of money.
17. Money received through the lottery,
sweepstakes, contests, or through gambling ventures whether received on an
annuity or lump sum basis.
18. Any
other source of income not specifically excluded in subsection (F).
G. Excluded Income. The Department
shall exclude the items listed in this subsection when determining a family's
gross monthly income.
1. Per capita payments
to or funds held in trust for any individual in satisfaction of a judgment of
the Indian Claims Commission or the Court of Claims;
2. Payments made pursuant to the Alaska
Native Claims Settlement Act to the extent such payments are exempt from
taxation under Section 21(a) of the Act;
3. Money or capital gains received as a lump
sum, from the sale of personal or real property, such as stocks, bonds, or a
car (unless the person was engaged in the business of selling such property, in
which case the net proceeds would be counted as income from self
employment);
4. Withdrawals of bank
deposits;
5. Loans; money
borrowed;
6. Tax refunds;
7. Any monies received through the federal
Earned Income Credit (EIC);
8. One
time lump sum awards or benefits, including:
a. Inherited funds;
b. Insurance awards;
c. Damages recovered in a civil
suit;
d. Monies contributed by a
client to a retirement fund that are later withdrawn prior to actual
retirement; and
e. Retroactive
public assistance payments;
9. The value of U.S. Department of
Agriculture (USDA) Food Stamps;
10.
The value of USDA-donated food;
11.
The value of any supplemental food assistance received under the Child
Nutrition Act of 1966 and special food service program for children under the
National School Lunch Act, the Women, Infant, and Children Program (WIC), Child
and Adult Care Food Program (C.A.C.F.P.), and the School Lunch
Program;
12. Any payment received
under the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (for example, Navajo/Hopi Relocation Act);
13. Earnings of a child who is under the age
of 18 and attending high school or other training program, and who is not a
minor parent who needs Child Care Assistance for his or her own
child;
14. Home produce used for
household consumption;
15.
Government-sponsored training program expenses (TRE payments) such as:
training-related expenses paid to JOBS participants and Job Training
Partnership Act (JTPA) training expenses paid directly to the client;
16. The value of goods or services received
in exchange for work;
17. Interest
on Series E, United States Government Savings bonds;
18. Foster care maintenance payments received
for care of foster children;
19.
Adoption subsidy payments received for the care of adopted children;
20. Educational loans, grants, awards, and
scholarships regardless of their source, including Pell Grants, Supplemental
Educational Opportunity Grants (SEOG), Bureau of Indian Affairs (BIA) Student
Assistance Grants, college work-study income, Carl D. Perkins Vocational and
Applied Technology Education Act income, and any other state or local, public,
or private educational loans, grants, awards, and scholarships;
21. Money received from the Domestic
Volunteer Act when the adjusted hourly payment is less than minimum wage;
Action Volunteer Programs include VISTA, Foster Grandparent Program (FGP),
Retired Senior Volunteer Program (RSVP), and Senior Companion Program
(SCP);
22. Housing and Urban
Development (HUD) benefits, cash allowances and credits against rent;
23. Vendor payments including payments made
directly to a third party by friends, relatives, charities, or agencies to pay
bills for the client;
24.
Vocational Rehabilitation training-related expenses (TRE) which are
reimbursements for expenses paid. Subsistence and maintenance allowances, and
incentive payments not designated as wages;
25. Disaster relief funds and emergency
assistance provided under the Federal Disaster Relief Act, and comparable
assistance provided by a state or local government, or disaster assistance
organization;
26. Energy assistance
including all state or federal benefits designated as "energy assistance" or
assistance from a municipal utility or non-profit agency;
27. Agent Orange payments;
28. Any other income specifically excluded by
applicable state or federal law.
H. Income Deduction. Child support that is
paid for dependents who do not reside in the same household with the eligible
family shall be deducted from the monthly gross countable income prior to
income calculation and fee level and copayment assignment as prescribed in
subsection (I) and
R6-5-4915.
I. Income Calculation. The Department shall
calculate monthly income as prescribed in this subsection.
1. The Department shall include all income of
all family members included in the family-size determination, other than income
excluded as prescribed in
R6-5-4914(F)
in the determination of income eligibility.
2. The Department shall calculate a monthly
figure for each source of income separately with the appropriate method used
for calculation.
3. After
calculating monthly income for each source of income, the Department shall add
the monthly amounts from each source to obtain the total monthly
income.
4. The Department shall
convert income received less often than monthly to a monthly figure as provided
in this subsection.
a. The Department shall
prorate the total income over the number of months that the income is intended
to cover.
b. If the income is
received on or after the date of application, a monthly share of income shall
be considered beginning with its earliest possible effective date and for a
number of months equal to the number of months which the income
covers.
c. If the family receives
the income prior to the date of application, the number of months that the
income is intended to cover shall be equal to the number of months of coverage
remaining.
5. The
Department shall anticipate income for a current or future month based on the
averaged income received in the most recent 30-day period, unless the
Department receives new information that indicates that the income has changed,
as verified under subsection (J).
a. If the
income received by the household has increased due to receipt of a new source
of income, an increased work schedule, or a raise in salary or wages, the
Department shall calculate the gross monthly countable income for the household
based on the amount of income anticipated to be received on a monthly basis.
The Department shall begin counting the new or increased income as described
under subsection (6).
b. If the
income received by the household has decreased due to loss of a source of
income, a decreased work schedule, or a reduction in salary or wages, the
Department shall cease counting the income effective the date that the client
provides verification of the loss or reduction in income.
6. When a family receives a new or increased
income source that will be received monthly, weekly, bi-weekly, or
semi-monthly:
a. The income shall not be
considered available to the family until the date that the first full payment
is received.
b. The Department
shall not assess a new fee level or ineligibility to the client until the
monies are available.
c. Once the
client has already received the payment that includes the new or increased
income source, and a higher fee level or ineligibility results:
i. The Department shall increase the fee
level or terminate assistance no earlier than 10 days after the first full
paycheck has been received; and
ii.
The Department shall send a 10-day negative action notice prior to increasing
the fee level or terminating assistance.
7. The Department shall convert income
received more often than monthly, for a period covering less than a month, to a
monthly amount by one of the methods listed below.
a. If the income amount does not vary and is
received monthly, weekly, bi-weekly, or semi-monthly, the conversion to a
monthly amount will be obtained by multiplying the pay period amount by:
i. 1, if monthly;
ii. 4.3, if weekly;
iii. 2.15, if bi-weekly; or
iv. 2, if semi-monthly.
b. This amount shall be applied as income on
an ongoing monthly basis until there is a change in the income.
c. If the monthly income received varies in
amount and frequency, and exact monthly figures are unavailable, the Department
shall use an average monthly figure.
8. When the Department calculates the gross
monthly income for the family, the whole dollar amount only shall be used to
determine income eligibility, and fee level and copayment assignment; any
amount that is a fraction of a whole dollar shall be rounded down to the next
whole dollar.
J.
Verification of Income. The client shall verify income by providing written
documentation of income as requested by the Department such as:
1. Pay stubs for the most recent calendar
month, or for any month of potential overpayment;
2. Employer's statement verifying work
schedule, hourly rate of pay, and frequency of pay;
3. Benefit award statements for the most
recent benefit period;
4.
Statements of account to verify interest income;
5. Quarterly or annual tax returns for the
most recent quarter or year for self-employment income;
6. Self-employment log accompanied by gross
sales receipts and business expense receipts for the most recent calendar month
or quarter; and
7. Other written
documentation from the source of the income indicating the amount of income
received, source of income, frequency received, and naming the payee.
Notes
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