9 CCR 2503-7-3.755.21 - Adequate Verification of Income [Rev. eff. 11/1/15]
The case record shall contain adequate verification of income. Adequate verification is defined as any of the following:
A. Unearned income, such as pensions or
retirement income, veteran's benefits, worker's compensation, unemployment or
supplemental security income shall be verified in writing, such as an award
letter or cost of living adjustment (COLA) letter, issued after the last
general increase for that type of assistance, which shows the gross amount
before any deductions. Acceptable verification includes documentation from
federal/state/system inquiries (i.e., a copy of applicable CBMS screens).
Copies of bank deposits or checks shall not be adequate verification of gross
income.
B. Verification of child
support income shall include at a minimum:
1.
Verification through the Automated Child Support Enforcement System (ACSES);
or,
2. Verification through the
Family Support Registry (FSR); or,
3. Copies of checks, money orders or other
document(s) including written statements or affidavits from the non-custodial
parent that documents the income paid directly to the custodial
parent.
4. An exception shall be
made in cases of domestic violence as defined in Section
18-6-800.3(1),
C.R.S., when the applicant provides evidence from a court or participation in
the state's Address Confidentiality Program (ACP) pursuant to Section
24-30-2104,
C.R.S. Client declaration shall be sufficient in such
cases.
C. Social Security
income may be verified by an award letter, issued by the social security
administration, after the last general increase. Acceptable verification
includes documentation from federal/state/system inquiries (i.e., a copy of
applicable CBMS screens). Gross Social Security income includes income before
any deductions for Medicare or other medical insurance. Copies of bank deposit
or checks shall not be adequate verification of gross Social Security
income.
D. Earned ongoing income
shall be verified for at least four (4) weeks of the eight (8) weeks prior to
the application date and shall consist of pay stubs or statements from
employers which state the actual gross income earned.
E. Public assistance income shall be verified
through the most current active county records. The Low-Income Energy
Assistance Program case record must specifically reference the source document
of the income information via federal and/or state system inquiries (i.e., a
copy of applicable CBMS screens).
F. Verification of income other than public
assistance income of applicant households may be obtained through the most
current active county records. The Low-Income Energy Assistance Program case
record must specifically reference the source document of the income
verification (i.e., source document name and/or number and document
date).
G. Verification may be
obtained by collateral contact, provided that the case record contains complete
information on the name and title of the person contacted, the name of the
employer or agency, the period of employment and the actual gross income
received, earned or unearned.
H. In
verifying zero income, including situations where the shelter expenses exceed
income, the county shall examine income of all adult members of the household
by using the Department of Labor and Employment (DOLE) verification system and
one or more of the following methods:
1.
Obtain a reasonable explanation from the household on how they meet shelter
expenses and notate in the Record of Contact (ROC) when the explanation is
verbally communicated.
2. Verify
final date of employment with last employer;
3. Colorado Benefits Management System
(CBMS).
I. Verification
of self-employment income shall include, at a minimum:
1. Written or verbal declaration of monthly
gross income, which may include Profit and loss statements, i.e.,
self-employment ledger; and,
2.
Receipts for business-related expenses are required in order to be considered
as deductions:
a. Rent or mortgage is not an
allowable expense when the applicant is operating a business from his or her
residence.
b. Utilities, data and
phone bills including cell phones are not allowable expenses when the account
is in the name of an individual.
c.
Fuel expenses are allowable for vehicles used solely for business and for
individuals who use personal vehicles that are directly related to the work and
necessary to conduct business. The county may accept gas receipts and/or
documentation of mileage for those vehicles that are not used solely for
business. If using a mileage log, the deduction is then based on the number of
miles times the county's established reimbursement rate.
d. Rental property allowable expenses shall
be limited to the costs of maintenance of the property.
3. Credit card and bank statements are not
allowable receipts for business related expenses.
J. Owners of LLC's or S-Corps are considered
employees of the corporation and therefore cannot be considered self-employed.
Because they are not considered self-employed, they are not entitled to the
exclusion of allowable costs of producing self-employment income. The income
from these types of corporations should be counted as regular earned income,
not self-employment income. When owners do not pay themselves a salary, but
instead pay their personal expenses from the business account, the amount of
the personal expenses paid from the business account will be considered their
gross earned income. Owners who do not pay themselves a salary, but instead pay
their personal expenses from the business account may verify this information
in the form of a written statement listing the expenses or can declare this
verbally by collateral contact.
K.
Gift income shall be considered verified with applicant
declaration.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
The case record shall contain adequate verification of income. Adequate verification is defined as any of the following:
A. Unearned income, such as pensions or retirement income, veteran's benefits, worker's compensation, unemployment or supplemental security income shall be verified in writing, such as an award letter or cost of living adjustment (COLA) letter, issued after the last general increase for that type of assistance, which shows the gross amount before any deductions. Acceptable verification includes documentation from federal/state/system inquiries (i.e., a copy of applicable CBMS screens). Copies of bank deposits or checks shall not be adequate verification of gross income.
B. Verification of child support income shall include at a minimum:
1. Verification through the Automated Child Support Enforcement System (ACSES); or,
2. Verification through the Family Support Registry (FSR); or,
3. Copies of checks, money orders or other document(s) including written statements or affidavits from the non-custodial parent that documents the income paid directly to the custodial parent.
4. An exception shall be made in cases of domestic violence as defined in Section 18-6-800.3(1), C.R.S., when the applicant provides evidence from a court or participation in the state's Address Confidentiality Program (ACP) pursuant to Section 24-30-2104, C.R.S. Client declaration shall be sufficient in such cases.
C. Social Security income may be verified by an award letter, issued by the social security administration, after the last general increase. Acceptable verification includes documentation from federal/state/system inquiries (i.e., a copy of applicable CBMS screens). Gross Social Security income includes income before any deductions for Medicare or other medical insurance. Copies of bank deposit or checks shall not be adequate verification of gross Social Security income.
D. Earned ongoing income shall be verified for at least four (4) weeks of the eight (8) weeks prior to the application date and shall consist of pay stubs or statements from employers which state the actual gross income earned.
E. Public assistance income shall be verified through the most current active county records. The Low-Income Energy Assistance Program case record must specifically reference the source document of the income information via federal and/or state system inquiries (i.e., a copy of applicable CBMS screens).
F. Verification of income other than public assistance income of applicant households may be obtained through the most current active county records. The Low-Income Energy Assistance Program case record must specifically reference the source document of the income verification (i.e., source document name and/or number and document date).
G. Verification may be obtained by collateral contact, provided that the case record contains complete information on the name and title of the person contacted, the name of the employer or agency, the period of employment and the actual gross income received, earned or unearned.
H. In verifying zero income, including situations where the shelter expenses exceed income, the county shall examine income of all adult members of the household by using the Department of Labor and Employment (DOLE) verification system and one or more of the following methods:
1. Obtain a reasonable explanation from the household on how they meet shelter expenses and notate in the Record of Contact (ROC) when the explanation is verbally communicated.
2. Verify final date of employment with last employer;
3. Colorado Benefits Management System (CBMS).
I Verification of self-employment income shall include, at a minimum:
1. Written or verbal declaration of monthly gross income, which may include Profit and loss statements, i.e., self-employment ledger; and,
2. Receipts for business-related expenses are required in order to be considered as deductions:
a. Rent or mortgage is not an allowable expense when the applicant is operating a business from his or her residence.
b. Utilities, data and phone bills including cell phones are not allowable expenses when the account is in the name of an individual.
c. Fuel expenses are allowable for vehicles used solely for business and for individuals who use personal vehicles that are directly related to the work and necessary to conduct business. The county may accept gas receipts and/or documentation of mileage for those vehicles that are not used solely for business. If using a mileage log, the deduction is then based on the number of miles times the county's established reimbursement rate.
d. Rental property allowable expenses shall be limited to the costs of maintenance of the property.
3. Credit card and bank statements are not allowable receipts for business related expenses.
J. Owners of LLC's or S-Corps are considered employees of the corporation and therefore cannot be considered self-employed. Because they are not considered self-employed, they are not entitled to the exclusion of allowable costs of producing self-employment income. The income from these types of corporations should be counted as regular earned income, not self-employment income. When owners do not pay themselves a salary, but instead pay their personal expenses from the business account, the amount of the personal expenses paid from the business account will be considered their gross earned income. Owners who do not pay themselves a salary, but instead pay their personal expenses from the business account may verify this information in the form of a written statement listing the expenses or can declare this verbally by collateral contact.