Subpart
1.
Proof of income eligibility.
An applicant requesting child care assistance must provide
proof of income eligibility. For the purpose of determining income eligibility,
gross annual income is the gross income of the family for the current month
multiplied by 12, the gross income for the 12-month period immediately
preceding the date of application, or the gross income calculated by the method
that provides the most accurate assessment of gross annual income available to
the family. A CCAP agency must use the method that provides the most accurate
assessment of gross annual income currently available to the family. An
applicant must verify counted income as described in subpart 4 with documentary
evidence. If an applicant does not submit sufficient evidence of counted income
to a CCAP agency, the CCAP agency must offer the applicant the opportunity to
sign an informational release to permit the CCAP agency to verify whether the
applicant qualifies for child care assistance.
Subp. 1a.
Income limits.
Income limits vary for applicants and participants under
Minnesota Statutes, section
119B.09,
subdivision 1.
A. To be income
eligible at application, a family's gross annual income after allowable
deductions under subpart 6a must be at or below:
(1) 47 percent of the state median income,
adjusted for family size, for basic sliding fee child care assistance or
student parents;
(2) 67 percent of
the state median income, adjusted for family size, for MFIP or DWP child care
assistance; or
(3) 47 percent of
the state median income, adjusted for family size, for transition year child
care assistance if a family does not receive MFIP and DWP child care
assistance. If a family's MFIP or DWP grant is closing and the family receives
MFIP or DWP child care assistance, a CCAP agency must consider the family a
participant and the family is subject to the income limits in items B and
C.
B. To be income
eligible at redetermination, a family's gross annual income after allowable
deductions must be at or below 67 percent of the state median income, adjusted
for family size. This limit applies to all participants.
C. To maintain income eligibility during the
12-month eligibility period, a family's gross annual income after allowable
deductions must be at or below 85 percent of the state median income, adjusted
for family size. This limit applies to all participants.
D. A CCAP agency must consider a family a
participant when the family receives child care assistance and becomes
temporarily ineligible under part
3400.0040, subpart 17, subject to
the income limits in items B and C. A CCAP agency must consider a family a
basic sliding fee applicant when the family on the basic sliding fee waiting
list reaches the top of the waiting list and is temporarily ineligible under
part
3400.0040, subpart 17, subject to
the income limit in item A, subitem (1).
E. A family that is suspended under part
3400.0040, subpart 18, is
considered a participant and is subject to the income limits in items B and C
during the suspension and after the suspension ends.
F. If a family becomes ineligible while
receiving child care assistance, a CCAP agency must terminate the family's
child care assistance. If a formerly ineligible family applies for child care
assistance, a CCAP agency must consider the family an applicant and the family
is subject to the income limits in item A.
Subp. 2. [Repealed, 26 SR 253]
Subp. 3.
Evaluation of income.
A CCAP agency must determine the income that a family receives
or that is available to a family according to subparts 4 to
11.
Subp. 4.
Determination of gross annual income.
The income standard for determining eligibility for child care
assistance is a family's gross annual income. A family's gross annual income is
the sum of each family member's income sources under Minnesota Statutes,
sections
119B.011, subdivision
15, and 256P.01, subdivisions 3 and 8, including earned income, self-employment
income, unearned income, and lump sum payments. A CCAP agency must offset
negative self-employment income from one business against self-employment
income from a different business, resulting in a reduction in annual income
from self-employment. Lump sum payments that a family receives prior to
participating in the child care assistance program are not included in the
family's total gross annual income. If a participant's eligibility ends after
receiving a lump sum and the participant reapplies for child care assistance, a
CCAP agency must count the lump sum for 12 months from the date of the lump sum
receipt. A CCAP agency must calculate earned income, self-employment income,
unearned income, and lump sum payments separately.
Subp. 4a.
Individuals with exempt
income.
Certain individuals in a family participating in the child care
assistance program are exempt from having a CCAP agency count some or all of
their income.
A. Individuals under
Minnesota Statutes, section
256P.06,
subdivision 2, paragraph (a), are exempt from having a CCAP agency count their
earned income.
B. A designated new
spouse under Minnesota Statutes, section
256P.06,
subdivision 2, paragraph (c), is exempt from having the designated new spouse's
earned and unearned income counted when the designated new spouse's family
income before exemption does not exceed 67 percent of the state median income
and the family verifies the marriage date. If a family meets these
requirements, the designated new spouse's earned and unearned income no longer
counts for two service periods after a CCAP agency receives Verification of the
marriage date and continues not to count for up to 26 service
periods.
Subp. 5.
[Repealed,
L
2015 c 71 art 5
s
34]
Subp.
6. [Repealed,
L
2015 c 71 art 5
s
34]
Subp.
6a.
Deductions from gross annual income.
When a family verifies items at the time of application or
redetermination, or during the 12-month eligibility period, a CCAP agency must
deduct the following items from a family's gross annual income:
A. child or spousal support paid to or on
behalf of a person or persons who live outside of the household;
B. money used to pay for health , dental, and
vision insurance premiums for family members that are not reimbursed by medical
assistance; and
C. expenditures
necessary to secure payment of unearned income.
Subp. 7.
Earned income from
self-employment.
In determining a family's gross annual income for purposes of
eligibility under this part, a CCAP agency must determine earned income from
self-employment according to Minnesota Statutes, section
256P.05,
subdivision 2. If a family provides Verification for and meets income and
authorized activity eligibility requirements under both income determination
methods but does not choose a method, the CCAP agency must use the method that
results in the lowest copayment to the family.
A. A family must provide Verification of
self-employment income for either income determination method and provide
expenses for the taxable income method.
B. At the time of application, or
redetermination, or during the 12-month eligibility period, a CCAP agency must
allow a family to submit a self-attestation verifying income if financial
documentation is unavailable or insufficient to accurately predict
self-employment income.
C. A family
may change the method of self-employment income determination when the current
income calculation does not provide the most accurate assessment of annual
ongoing income available to the family. The family must meet Verification
requirements of the chosen method.
D. Self-employment business records must be
kept separate from the family's personal records.
E. If the person's business is a partnership
or a corporation and that person is drawing a salary, the salary must be
treated as earned income.
Subp.
8. Repealed.
Subp. 9.
Repealed.
Subp. 10.
Determination of farm income.
Farm income must be determined for a one-year period. Farm
income is gross receipts minus operating expenses, except for expenses listed
in subpart 8. Gross receipts include items such as sales, rents, subsidies,
farm-related insurance payments, soil conservation payments, production derived
from livestock, and income from the sale of home-produced
foods.
Subp. 11.
Determination of rental income.
A. Income from rental property is considered
self-employment earnings when the owner spends an average of 20 or more hours
per week on maintenance or management of the property.
B. When an owner does not spend an average of
20 or more hours per week on maintenance or management of the property, income
from rental property is considered unearned income.
C. Rental income is determined according to
Minnesota Statutes, section
256P.05,
subdivision 2.
Subp. 12.
[Repealed,
L
2015 c 71 art 5
s
34]
Subp.
13. [Repealed,
L
2015 c 71 art 5
s
34]
