340:50-7-22 - Income exclusions

340:50-7-22. Income exclusions

The worker excludes income listed in this Section from the household's countable income, from income of disqualified members whose income is counted, and from the income of ineligible aliens who would otherwise be household members. No other income is excluded.

(1) In-kind income. In-kind income is any gain or benefit that is not in the form of money payable directly to the household, including non-monetary or in-kind benefits, such as meals, clothing, public housing, or produce from a garden.

(2) Vendor payments. Vendor payments are payments in money on behalf of a household when a person or organization outside the household uses its own funds to make a direct payment to either a household's creditors or a person or organization providing a service to the household.

(3) Educational assistance. Educational assistance including grants, work-study, scholarships, fellowships, educational loans on which payment is deferred, veteran's education benefits, and the like are exempt.

(4) Family Support Assistance Payment Program. Family Support Assistance Payment Program payments provided by Developmental Disabilities Services (DDS) are excluded.

(5) Income excluded by law. Income excluded by law includes:

(A) reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Public Law (P.L.) 91-646, § 216. Such payments are:

(i) payments to persons displaced due to the acquisition of real property;

(ii) relocation payments to a displaced home owner toward the purchase of a replacement dwelling when the owner purchased and occupied the dwelling within one year following displacement; and

(iii) replacement housing payments to displaced persons not eligible for a home owner's payment;

(B) payments received:

(i) under the Alaska Native Claims Settlement Act, P.L. 92-203 § 21(a);

(ii) under the Sac and Fox Indian Claims Agreement, P.L. 94-189;

(iii) from the disposition of funds to the Grand River Band of Ottawa Indians, P.L. 94-540;

(iv) by members of the Confederated Tribes of the Mescalero Reservation, P.L. 95-433;

(v) under the Maine Indian Claims Settlement Act of 1980 to members of the Passamaquoddy and the Penobscot Nation, P.L. 96-420; or

(vi) by an individual as a lump sum or a periodic payment via the Cobell settlement, per the Claims Resolution Act of 2010, P.L. 111-291 § 101(f)(2);

(C) any payment to volunteers under Title II, Retired and Senior Volunteer Program (RSVP), foster grandparents and others, of the Domestic Volunteer Services Act of 1973, P.L. 93-113 as amended;

(D) income derived from certain submarginal land of the United States held in trust for certain Indian tribes, P.L. 94-114, § 6;

(E) Indian per capita payments distributed from judgment awards and trust funds made per P.L. 98-64. Also excluded is any interest or investment income accrued on such funds while held in trust or any purchases made with judgment funds, trust funds, interest, or investment income accrued on such funds. Any per capita payments, headrights of the Osage tribe, income from mineral leases or other tribal business ventures are excluded, when they meet the distribution requirements stated in this paragraph. Any interest or income derived from the funds after distribution is considered as other income. The per capita exclusion applies per person rather than per family;

(F) income up to $2,000 per year received by individual Indians, derived from leases or other uses of individually-owned trust or restricted lands. The income exclusion applies to calendar years beginning January 1, 1994. Remaining disbursements from the trust or restricted lands are considered as income;

(G) allowances, stipends, earnings, compensation in lieu of wages, grants, and other payments made for participation in the Workforce Innovation and Opportunity Act (WIOA) of 2014, or other federally-funded workforce training program to persons of all ages and student status with the exception of income paid to persons 19 years of age and older for on-the-job training. This income is treated as any other earned income;

(H) payments, allowances, or earnings to persons participating in programs under Title I of the National and Community Service Act, such as University Year for Action (UYA), Senior Companion Program, AmeriCorps Volunteers in Service to America (VISTA), and other AmeriCorps Programs are not included as income for purposes of determining food benefit eligibility and benefit level;

(I) payments or allowances made under any federal law for the purpose of energy assistance, Low Income Home Energy Assistance Program (LIHEAP) and utility payments, and reimbursements made by the Department of Housing and Urban Development (HUD) and the Farmers Home Administration (FmHA);

(J) the amount of the mandatory salary reduction of military service personnel used to fund the G.I. Bill;

(K) benefits from State and Community Programs on Aging, per Title III and Title Vof the Older Americans Act of 1965 as amended by P.L. 114-144, Older Americans Act Reauthorization Act of 2016. Each state and various organizations receive Title V funds. These organizations include:

(i) Experience Works;

(ii) National Council on Aging;

(iii) National Council of Senior Citizens;

(iv) American Association of Retired Persons (AARP) Foundation;

(v) United States Forest Service;

(vi) National Association for Spanish Speaking Elderly;

(vii) National Urban League;

(viii) National Council on Black Aging;

(ix) National Council on Indian Aging;

(x) Asociaci?n Nacional Pro Personas Mayores;

(xi) Associates for Training and Development, Inc.;

(xii) American Samoa;

(xiii) Easter Seals, Inc.;

(xiv) Goodwill Industries International, Inc.;

(xv) Institute for Indian Development;

(xvi) National Able Network;

(xvii) National Asian Pacific Center on Aging;

(xviii) National Caucus and Center on Black Aged, Inc.;

(xix) National Older Worker Career Center;

(xx) Operation A.B.L.E. of Greater Boston, Inc.;

(xxi) Senior Service America, Inc.;

(xxii) SER-Jobs for Progress National, Inc.;

(xxiii) Workplace, Inc.; and

(xxiv) VANTAGE Aging;

(L) Earned Income Tax Credit (EITC) payments received as part of a tax refund and also EITC advance payments received as part of a paycheck, P.L. 100-435;

(M) refunds of the state EITC as a result of filing a state income tax return;

(N) payments made from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.);

(O) payments received under the Civil Liberties Act of 1988. These payments are made to persons of Japanese ancestry whose ancestors were detained in internment camps during World War II;

(P) payments made from the Radiation Exposure Compensation Trust Fund as compensation for injuries or deaths resulting from the exposure to radiation from nuclear testing and uranium mining;

(Q) payments for the fulfillment of a Plan for Achieving Self-Support (PASS) under Title XVI of the Social Security Act;

(R) payments made to persons who were victims of Nazi persecution;

(S) funds distributed by the Federal Emergency Management Agency (FEMA) due to a disaster or an emergency to persons directly affected by such. This exclusion also applies to comparable disaster assistance provided by states, local governments, and disaster assistance organizations. For payments to be excluded, the disaster or emergency must be declared by the President of the United States;

(T) monetary allowances as described in Section 1823(c) of Title 38 of the United States Code (38 U.S.C. § 1823(c)) provided to certain persons who are children of Vietnam War veterans;

(U) Disaster Unemployment Assistance paid to persons unemployed as a result of a major disaster;

(V) benefits paid to certain veterans and the spouses of veterans who served in the military of the Government of the Commonwealth of the Philippines during World War II by the Filipino Veterans Equity Compensation Fund;

(W) money deposited into or withdrawn from a qualified Oklahoma Achieving a Better Life Experience (ABLE) Program account, per Sections 4001.1 through 4001.5 of Title 56 of the Oklahoma Statutes or a qualified ABLE Program account set up in any other state, per the ABLE Act of 2014, 26 U.S.C. § 529A is excluded as income when the client:

(i) provides documents to verify the account meets exemption criteria;

(ii) verifies money deposited in the account does not exceed the annual federal gift tax exclusion amount, per 26 U.S.C. § 2503(b). Any money deposited in the account in the calendar year in excess of the annual federal gift tax exclusion amount is considered as countable income in the amount deposited; and

(iii) verifies withdrawals from the account are used to pay qualified disability expenses. Money withdrawn for reasons other than to pay qualified disability expenses is considered as income for the month of withdrawal; and

(X) is income received by a member of the United States Armed Forces, per 37 U.S.C. Chapter 5 and, per 273.9(c)(20) of Title 7 of the Code of Federal Regulations that is:

(i) received in addition to the service member's basic pay during combat deployment;

(ii) received as a result of the service member's deployment or service in an area designated as a combat zone as determined pursuant to Executive Order or P.L.; and

(iii) not received by the service member prior to the service member's deployment to or service in a federally designated combat zone.

(6) Payments not considered income.

(A) The payments in (i) through (iii) of this paragraph are not considered as income.

(i) Monies withheld from any income source to repay a prior overpayment from that same source.

(ii) Monies voluntarily or involuntarily returned to repay a prior overpayment received from that same income source.

(iii) Child support payments received by Temporary Assistance for Needy Families (TANF) recipients and sent to Child Support Services to maintain TANF eligibility.

(B) Monies withheld or returned to repay overpayments in federal, state, or local means-tested assistance programs are counted when they are withheld or returned to repay overpayments resulting from intentional program violation as established by the agency administering the program.

(i) In the Supplemental Nutrition Assistance Program (SNAP), willful misrepresentation is considered as intentional program violation.

(ii) The State Supplemental Payment to the Aged, Blind, and Disabled and TANF programs define intentional program violation using the terms restitution, fraud, and willful misrepresentation.

(iii) The Social Security Administration (SSA) and Veterans Benefits Administration programs define intentional program violation as fraud. Supplemental Security Income (SSI) is a means-tested program within SSA.

(7) Reimbursements.

(A) Reimbursements for past or future expenses to the extent they do not exceed actual expenses and do not represent a gain or benefit to the household are not considered. Examples of reimbursements may include:

(i) job or training-related expenses, such as travel, per diem, uniforms, and transportation to and from job or training sites;

(ii) out-of-pocket expenses incurred by volunteers in the course of work;

(iii) medical or dependent care; and

(iv) services provided by Title XX of the Social Security Act.

(B) When a reimbursement including a flat allowance, covers multiple expenses, each expense does not have to be separately identified as long as none of the reimbursement covers normal living expenses. The reimbursement amount that exceeds the actual incurred expenses is counted as income. A reimbursement is not considered to exceed actual expenses unless the provider or household indicates the amount is excessive.

(C) The worker excludes any amount the employer adds to the employee's gross income as a benefit allowance to pay for a reimbursable expense, such as insurance or dependent care. When the monthly benefit allowance exceeds the monthly expense and the employer:

(i) includes the excess in the employee's pay each month, the worker counts the excess benefit allowance as earned income; or

(ii) retains any excess until the end of the year and then provides a yearly refund to the employee, the worker excludes the refund as income as it is considered a non-recurring lump sum payment per (10)(C) of this Section.

(8) Money received for third parties. The worker excludes money the household receives and uses for the care and maintenance of a third-party beneficiary who is not a household member.

(A) When the intended beneficiaries of a single payment include household and non-household members, any identifiable portion of the payment intended and used for the care and maintenance of the non-household member is excluded.

(B) When the non-household member's portion cannot be readily identified, as in TANF cash assistance payments, the payment is evenly prorated among intended beneficiaries. The exclusion is applied to the non-household member's pro rata share or the amount actually used for the non-household member's care and maintenance, whichever is less.

(9) Child's earnings. When a child, is head of his or her own household, his or her earned income is counted. The earned income of an elementary or high school student 17 years of age and younger, under parental control of an adult household member is excluded. This exclusion continues to apply during temporary interruptions in school attendance due to semester or vacation breaks, provided the child's enrollment resumes following the break. When the child's earnings cannot be differentiated from those of other household members, the total earnings are prorated equally among the working members, and the child's prorated share is excluded.

(10) Other types of excluded income.

(A) Loans. All loans, including loans from private as well as commercial institutions, are excluded as income. When the household states someone is loaning the household money to meet expenses, a statement signed by both parties is required indicating the payment is a loan and must be repaid. When the household states it receives loans on a recurrent or regular basis from the same source, the lender must sign an affidavit stating the payments are loans that must be repaid or that payments will be made in accordance with an established repayment schedule.

(B) Irregular Income. Exclude any income in the certification period that is received too infrequently or irregularly to be reasonably anticipated that is $30 or less per quarter.

(C) Non-recurring lump sum payments. Exclude money received in the form of non-recurring lump sum payments including, but not limited to: income tax refunds, rebates, credits, retroactive lump sums from SSA, SSI, public assistance, Railroad Retirement pensions, other payments, or retroactive lump sum insurance settlements.

(D) Cost of self-employment. Exclude the cost of producing self-employment income, per Oklahoma Administrative Code 340:50-7-30.

(E) Income of non-household members. The income of non-household members who are not disqualified or ineligible aliens is not considered available to the household.

(F) Charitable contributions. Exclude cash contributions to a household from one or more private non-profit charitable organizations, not to exceed $300 in a federal fiscal year quarter. For the purposes of this provision a quarter includes these specific months:

(i) October, November, December;

(ii) January, February, March;

(iii) April, May, June; and

(iv) July, August, September.

(G) Department of Housing and Urban Development's (HUD) Family Self-sufficiency Program (FSS) escrow accounts. Families participating in the HUD FSS program may withdraw money from escrow accounts prior to completion of the program. This money is excluded as income.

(H) Individual Development Account (IDA). Any funds deposited in an IDA operated under the Assets for Independence Act and the interest that accrues is excluded as income.

(Amended by Oklahoma Register, Volume 34, Issue 24, September 1, 2017, eff. 9/15/2017 Amended by Oklahoma Register, Volume 36, Issue 24, September 3, 2019, eff. 9/16/2019)

Amended at 9 Ok Reg 3405, eff 5-13-92 (preemptive) ; Amended at 9 Ok Reg 3842, eff 8-24-92 (emergency) ; Amended at 10 Ok Reg 1155, eff 3-9-93 (emergency) ; Amended at 10 Ok Reg 1821, eff 5-13-93 ; Amended at 10 Ok Reg 1255, eff 6-11-93 ; Amended at 11 Ok Reg 345, eff 10-15-93 (emergency) ; Amended at 11 Ok Reg 2667, eff 6-13-94 ; Amended at 11 Ok Reg 4587, eff 9-1-94 (emergency) ; Amended at 11 Ok Reg 4811, eff 9-14-94 (preemptive) ; Amended at 12 Ok Reg 541, eff 12-10-94 (emergency) ; Amended at 12 Ok Reg 1723, eff 6-12-95 ; Amended at 19 Ok Reg 1767, eff 6-14-02 ; Amended at 20 Ok Reg 872, eff 6-1-03 ; Amended at 20 Ok Reg 2924, eff 10-1-03 (emergency) ; Amended at 21 Ok Reg 841, eff 4-26-04 ; Amended at 23 Ok Reg 1010, eff 6-1-06 ; Amended at 26 Ok Reg 840, eff 6-1-09 ; Amended at 27 Ok Reg 1241, eff 6-1-10 ; Amended at 28 Ok Reg 850, eff 6-1-11 ; Amended at 30 Ok Reg 676, eff 6-1-13

The following state regulations pages link to this page.