1240-01-04-.19 - TREATMENT OF EARNED INCOME

1240-01-04-.19. TREATMENT OF EARNED INCOME

(1) Earned income is defined as that total income which an HH/AG earns by its own work efforts, either salary, wages or commissions paid to the HH/AG as an employee, or profits from self-employment in an enterprise (including farming) which it may carry on independently or jointly with another person or persons. It includes earnings over a period of time from which settlement is made at one given time. (For AFDC purposes, this would include earned income tax credits.) It includes paid annual leave, vacation time, sick leave, pay while on maternity leave, and bonuses when they are subject to Income Tax and FICA. It also includes income from rental property for food stamps when a member of the HH/AG is actively engaged in the management of the property at least an average of 20 hours per week, and for AFDC when the aid group member is actively engaged in producing such income regardless of the amount of time spent in earning that income. It does not include and income such as pensions or benefits accruing as compensation or reward for service or compensation for lack of employment; for example, RSDI benefits, VA benefits, Unemployment Compensation, etc., nor Military Allotments, allotments from Job Corps participants, or return from capital investments.

(2) Food Stamps Only. All gross income, which is received or expected to be received, (during a food stamp certification period) is considered available in relation to the appropriate maximum income level for food stamp purposes, with three exceptions:

(a) When income is excluded or disregarded as defined:

(b) When income is so infrequent or irregular that it cannot reasonably be anticipated, but not in excess of $30 per quarter; and

(c) When a household contains a member who is 60 years of age or over, or a member who receives Supplemental Income (SSI) benefits under Title XVI, of the Social Security Act, or disability or blindness payments under Titles I, II, X, XIV or XVI of the Social Security Act.

(3) AFDC Only. All gross earned income, received or anticipated for members of the assistance unit and their responsible relatives is considered available in relation to the gross income standard with two exceptions:

(a) Only the deemed income of a stepparent or of a parent/legal guardian of a minor parent considered available;

(b) Job Training Partnership Act earnings of a child recipient or other type earnings of a full-time student during the six month exclusion period are not considered available.

(Original rule filed August 15, 1980; effective September 29, 1980. Repeal and new rule filed December 10, 1981; effective January 25, 1982.)

Authority: T.C.A. §§ 14-8-106, 14-27-104; 7 CFR 273.9; 45 CFR 233.20; PL 97-35, PL 98-369 § 2640.

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